Amsterdam-based Avantium, a company specialising in sustainable chemistry technologies, has secured €10M in financing to address its short-term liquidity needs.
This financing includes two parts:
(a) access to the second tranche of €4M under the €9.9M subordinated loan from the Province of Groningen.
(b) a €6M drawdown from the €20.1M increase of the senior debt financing facilities provided by the Lenders (Invest-NL, ABN AMRO, ING, ASN, Rabobank).
This €10M financing provides Avantium with short-term liquidity, enabling the company to continue pursuing medium- and long-term funding options.
Funding for short-term financial needs
The Dutch company is working to raise additional funding to ensure it has enough capital.
The Company is exploring different funding options, such as equity, debt, and government support, and is in talks with lenders and government organisations.
Because of these ongoing negotiations, Avantium cannot currently raise more equity in the capital markets, says the company.
Earlier this year, the company announced its intention to raise €40M through a share issue, but that process has not yet been completed.
Implementing strict cost controls
At the same time, Avantium is implementing strict cost controls while looking for new funding opportunities.
The company is prioritising its FDCA and PEF technology and reviewing all other business units, including R&D Solutions and the Volta Technology platform.
As part of this review, Avantium is discussing a potential transfer of ownership, either completely or partially, of the R&D Solutions and Volta Technology units.
This might involve selling associated assets or forming a partnership with an investor to help fund the next phase of technology development, say the company.
The announcement comes six months after raising €11.2M by selling 6,380,223 new shares.
Avantium: Commercialising innovative chemistry technologies
Founded in 2000 by Claude Stoufs, Avantium is a commercial-stage company specialising in renewable and circular polymer materials.
It develops and commercialises technologies to produce materials from sustainable carbon feedstocks, such as biomass and CO2.
It’s leading YXY Technology converts plant-based sugars into FDCA (furandicarboxylic acid), the key component of the sustainable plastic PEF.
The Amsterdam company has demonstrated this technology at its pilot plant in Geleen, Netherlands.
The company also offers R&D solutions in sustainable chemistry and catalyst testing.
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