Global Bioenergies seeks to raise EUR 17 million with L’Oréal Group and CM-CIC funds support
France-headed advanced biofuels and biochemical process developer Global Bioenergies has initiated a capital increase through a public offer without preferential subscription rights for an initial amount of EUR 17 million supported by the L’Oréal Group and the CM-CIC funds.
Global Bioenergies announced on June 20, 2019, the launch of a capital increase through a five-day public offer without preferential subscription rights for shareholders and without priority subscription period for existing shareholders, for an amount initially set at EUR 17 million, which could be increased to a maximum of EUR 19.5 million if the extension clause is fully exercised.
According to a statement, the purpose of the offer is to provide the company with the means to:
- complete the development of the Isobutene process at laboratory scale, pilot scale and demo scale (for around 58% of the proceeds of the issuance);
- continue the R&D efforts to adapt the process to the use of second-generation and third-generation resources (for around 20% of the proceeds of the issuance);
- participate in financing the front-end engineering design (FEED) phase of the first plant, to be conducted by IBN-One, and support IBN-One in its fund-raising efforts to start the construction of the plant (for around 10% of the proceeds of the issuance);
- finance the regular running costs of the Company (for around 12% of the proceeds of the issuance).
The proceeds to be received in the context of the issuance of the New Shares are not intended to finance the construction of the plant IBN-One, for which the research of necessary funds is ongoing (for a total need of EUR 140 million).
As part of this Offer, the L’Oréal Group has committed, subject to certain conditions, to subscribe EUR 7 million via its BOLD Business Opportunities for L’Oréal Development investment fund.
Subject to ongoing discussions, L’Oréal and Global Bioenergies intend to sign within the next months an R&D collaboration which would continue and expand efforts already undertaken since 2016 to identify and validate isobutene derivatives for applications in cosmetics, as well as an isododecane supply agreement.
This fundraising transaction will enable us to continue moving forward with IBN-One, the first plant project, which will have markets not only in the cosmetics but also in biofuels, and in particular aviation fuel, said Marc Delcourt, CEO, Global Bioenergies.