Amsterdam-based Avantium, a company specialising in sustainable chemistry technologies, has raised €70M through a capital increase, comprising a €50.5M fully underwritten rights offering and a €19.5M institutional upsize offering.
Tom van Aken, CEO of Avantium, says, “We are very pleased with this successful €70M capital raise, exceeding the €50M equity capital that Avantium was initially targeting.”
“This transaction allows us to remain well capitalised until our FDCA Flagship Plant is commercially operational. It also enables us to strengthen our balance sheet and to accelerate our technology licensing strategy.”
“The increased issue size of €70M, the high exercise percentage of the rights, the commitment of our larger existing shareholders and the entry of new strategic investors reflect an increasing and broadening interest in Avantium.”
Van Aken adds, “I would like to thank our shareholders for putting their trust in us through their contributions to this capital increase. With their support, we help realising a renewable and circular plastics economy, and create long-term, sustainable value for all our stakeholders.”
Settlement and trading on Euronext Amsterdam and Euronext Brussels are expected on February 12, 2024.
Brief about Avantium
Founded in 2000 by Claude Stoufs, Avantium is a pioneering company focused on renewable polymer materials, using proprietary technologies like YXY to convert plant-based sugars into FDCA (furandicarboxylic acid), a key component for sustainable plastic PEF (polyethylene furanoate).
PEF, being 100 per cent plant-based and recyclable, finds applications in various products such as polyesters, polyamides, polyurethanes, coating resins, plasticisers, and other chemical products.
Avantium, after demonstrating YXY Technology at its pilot plant in Geleen, Netherlands, is currently building the world’s first commercial FDCA plant, with large-scale PEF production expected in 2024.
The company also offers R&D solutions in sustainable chemistry and claims to be a leader in advanced catalyst testing technology. Listed on Euronext Amsterdam and Euronext Brussels, Avantium collaborates globally to create renewable chemistry solutions.
The proceeds will meet funding needs for Avantium Renewable Polymers, ensuring the completion, commissioning, and startup of the FDCA Flagship Plant, and facilitating its commercial deployment.
Additional funds will enhance the company’s financial profile, covering general corporate costs, working capital, and demonstrating long-term financial viability to stakeholders, including customers and potential licensees.
Avantium plans to allocate the proceeds as follows:
- 80 per cent for liquidity to complete and start the FDCA Flagship Plant, and enhance activities in Renewable Polymers for technology licensing.
- 15 per cent for general day-to-day management expenses and support services.
- Five per cent for developing and scaling up the Volta Technology, progressing from pre-pilot plant to pilot plant scale, and exploring partnerships and financing for the next development phase.