Dyadic in $13M Private Placement
20 November 2006
Dyadic International, a biotechnology company developing enzymes for use in the production of cellulosic ethanol, has entered into a $13-million private placement of its common stock with institutional investors. The deal includes 2,787,000 shares of common stock at a price of $4.68 per share and warrants to purchase up to 557,400 shares of common stock for gross proceeds of $13,043,160.
The warrants will become exercisable on the 181st day after being issued, expire three years thereafter, have an exercise price of $6.33 per share and will be callable by the Company under certain circumstances. Cowen and Company, LLC, acted as the exclusive placement agent for the offering.
The net proceeds of approximately $12.3 million will greatly assist us in expanding our C1 Host Technology development program that is fundamental to all of our businesses and, in particular, is anticipated to aid in the development of large-scale enzyme production systems and manufacturing processes for use in the production of abundant low cost fermentable sugars from biomass.
Additionally, the net proceeds are anticipated to help us strengthen the product pipeline for our Enzyme business, accelerate the commercial launch of new products in pulp & paper, animal feed and other areas, and expand R&D infrastructure as well as our sales and marketing efforts.—Mark Emalfarb, Dyadic President and CEO
Dyadic uses a number of proprietary fungal strains to produce enzymes and other biomaterials, principally focused on a system for protein production based on the patented Chrysosporium lucknowense fungus, known as C1.
Dyadic is applying its technologies to produce enzymes for use in converting various agricultural products (e.g. corn) and waste products (e.g. switch grass, wheat straw, sugar cane bagasse, etc.) into fermentable sugars, which can then be used in the production of traditional and cellulosic ethanol as well as other products currently derived from petroleum.
Dyadic’s C1 technology also is being developed to facilitate the discovery, development and large-scale production of human antibodies and other high-value therapeutic proteins. Dyadic currently sells more than 45 liquid and dry enzyme products to more than 200 industrial customers in approximately 50 countries for the textile, pulp & paper and animal feed industries.
In October, Dyadic signed a three-year research and development (R&D) agreement and a $10-million stock purchase agreement with Abengoa Bioenergy R&D (ABRD). The goal of the R&D agreement is the development of a cost-effective enzyme production system for commercial application in Abengoa Bioenergy’s cellulosic ethanol production process. (Earlier post.)
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