News

Fermentalg announces DIC deal approval, raises €12.6m

26 Oct 2017

French microalgae company Fermentalg has announced the approval by its shareholders of the €5 million investment to be made by DIC Corporation, and has secured funding of €12.6 million.

French microalgae company Fermentalg has announced the approval by its shareholders of the €5 million investment to be made by DIC Corporation as part of the global partnership executed on September 11, 2017. The global partnership is said to target the fast-growing market for natural alternatives to artificial food colourings, and will bring together Fermentalg’s microalgae strains bank and its integrated biotechnology platform with DIC Corporation's applied, industrial and commercial research resources.

"We are very proud to have a major industrial partner such as DIC Corporation,” said Philippe Lavielle, Chairman and CEO of Fermentalg. “This alliance, which has been very widely approved by our shareholders, will enable us to accelerate our deployment in health and nutrition areas where we have strong ambitions for microalgae-derived natural pigments."

On 1 October 2017, Fermentalg and DIC Corporation initiated a three-year joint development agreement (JDA) dedicated to two microalgae-derived natural pigments, including an innovative phycocyanin, the main blue pigment used in natural food colouring (for confectionery, ice cream, etc.) as an alternative to artificial food colouring.

Concurrently, Fermentalg announced that it had secured funding of €12.6 million that will provide it with the additional means to finance its development, notably regarding the partnership signed with DIC Corporation.

"I would like to thank all of our shareholders, both old and new, for the support and continued faith they have shown in taking part in this capital increase,” said Lavelle. “Combined with the bond issue which will be subscribed by DIC Corporation by 30 November 2017 at the latest, the operation will give us the financial means needed to confidently pursue our strategic roadmap and bring our innovation to the markets."

Demand for the capital increase resulted in the issue of 6,997,715 new shares at a unit price of €2.50, an oversubscription of 159% on the initial offering, taking the total amount to €17,494,288.