Australia-headed biotech developer Leaf Resources Ltd has announced that it has successfully raised AU$2.35 million, through a placement of 16.2 million ordinary shares to "sophisticated" investors. Funds raised from the placement will be used to advance the commercialisation of Leaf’s proprietary Glycell process through the development of the company’s first commercial project.
As detailed in the company’s announcement in July, Leaf will make a payment in early November of US$1 million to Leaf Development, LLC, a new joint venture with US-headed project developer Claeris LLC., for permitting, engineering, management, consulting fees, and other costs relating to the development of the first commercial plant using Glycell process.
Last month, Leaf Development, LLC signed a Memorandum of Understanding (MoU) with two Malaysian government agencies to advance the development of a commercial-scale, second-generation biochemical production facility that utilises Leaf’s proprietary technology.
The partnership with Claeris has been a game changer for our Company, as their contacts, reputation and expertise were essential in helping us secure the MoU with the Malaysian government. The fact that the placement was priced at a modest discount underscores the level of market confidence in our Glycell technology and the future of Leaf Resources. While there is still much work to be done, securing the additional funds that will help us take the next step forward in progressing the development of our first commercial-scale international project, said Ken Richards, Managing Director, Leaf Resources.
