Avantium increases financing package for its flagship plant to €46M

Avantium polymer company has raised €11.2 million (US$11.8 million) through an accelerated bookbuild offering of over six million new ordinary shares in the company, representing approximately 8% of Avantium’s issued share capital.

“The net proceeds of the total financing package of €46 million (US$48.5 million) are expected to fund working capital requirements and start-up costs in 2025 related to Avantium’s FDCA (furandicarboxylic acid) Flagship Plant,” Caroline van Reedt Dortland, director communications at Avantium, tells Packaging Insights.

“Avantium is nearing the start of commercial operations at its FDCA Flagship Plant, which is expected to drive the production and market launch of polyethylene furanoate (PEF) products worldwide. PEF holds immense potential in the rapidly growing packaging, textiles and film sectors, with markets valued at over US$200 billion,” she adds

“Avantium completed construction of the FDCA Flagship Plant in October. The Compacompanyow is in the process of commissioning and starting up the plant’s various sub-units.”

The renewable and circular polymer materials company’s shares have been placed at 14.5% discount to the closing price of €2.05 (US$2.17), representing €1.75 (US$1.85) per new ordinary share of the offer price. 

FDCA Flagship Plant timeline

As a commercial-stage company focused on renewable and circular polymer materials, Avantium develops and commercializes technologies for the production of materials based on sustainable carbon feedstocks. These include carbon extracted from biomass or from the air.

Avantium’s YXY Technology catalytically converts plant-based sugars into FDCA, which is important for the production of PEF plastic. PEF’s EU brand name is Releaf, a registered trademark of Avantium. 

The FDCA Flagship Plant is expected to drive the production and marketing of PEF products worldwide.Avantium has already demonstrated the YXY Technology at its pilot plant in Geleen, the Netherlands, and is in the process of establishing the world’s first commercial plant for FDCA in Delfzijl, the Netherlands. 

“During the start-up phase, Avantium will initially produce FDCA in batches before moving to continuous operations. Avantium’s partner, Selenis, will then polymerize the FDCA into PEF. Once performance testing and regulatory approvals are completed, sales under the offtake agreements will begin,” Van Reedt Dortland continues.

“We have a robust and well-designed start-up plan and technology, backed by over 13 years of experience with our pilot plant and a highly skilled team. Our start-up plan is designed to commence commercial production in 2025. The exact timing will depend on various factors, such as regulatory requirements.” 

Relationship with stakeholders

Van Reedt Dortland says that the company will maintain engagement with both existing and new shareholders following this offering. “As always, we will provide consistent updates and investor meetings to keep shareholders informed about our progress and future plans.”

“Avantium is strategically positioned to capitalize on these opportunities. Over the past years, Avantium has made notable progress with its FDCA and PEF technology, securing 16 offtake agreements and its first technology licensing agreement. Avantium boasts a robust IP portfolio featuring more than 166 granted and pending patent families, securing our competitive edge.”

The settlement of the offer Shares, admission to listing and trading of the offer shares is expected to take place on December 9, 2024, at Euronext Amsterdam and Euronext Brussels.

Bio-based PEF holds potential in the growing packaging, textiles and film sectors.Avantium and members of the management board along with the supervisory board agreed to a lock-up period of 180 calendar days after the settlement, subject to customary exceptions and waiver by Banks.

While the net proceeds of the offering, Avantium’s current cash resources and the proceeds from the up to €35.1 million (US$37 million) financing package are set to fund working the FDCA Flagship Plant, the remaining part of the net proceeds will be used by Avantium for “general corporate purposes.”

“Avantium has developed a range of novel technologies at various stages of commercialization,” says Van Reedt Dortland.

“This pipeline has significant upside potential and is designed to drive future growth. For now, we prioritize the commercialization and licensing of our FDCA and PEF technology.”