In Switzerland, Yorkville Advisors Global has committed to provide up to CHF 30 million in equity financing to Evolva over a 36 month period in individual tranches of up to CHF 1,000,000 each. In exchange for the funds to be provided, Yorkville will receive Evolva shares at a price which will be determined anew each time a SEDA tranche is called. The shares will be placed at a 5% discount to the market price – which is in line with Swiss market practice for private placements. Evolva and Yorkville have successfully worked together on a similar basis in the 2011-2013 period.
The SEDA has been established as part of the medium-term funding of Evolva’s operations. If Evolva were to utilize the SEDA in full, the cash runway would be extended by roughly one year. It remains at the sole discretion of Evolva to determine if and when to draw from the facility. In return for the 3-year investment commitment provided by Yorkville, Evolva will pay an initial upfront fee of CHF 250,000 in cash. Two additional installments of CHF 200,000 each (settled in cash or Evolva shares) will be due when the amount drawn from the facility crosses CHF 10 million and CHF 20 million.
At the same time, Evolva said it would team up with Paris-based FCI to expand the European sales, marketing and distribution of its high-purity, sustainably sourced citrus ingredients, nootkatone and valencene.
Nootkatone is a molecule that gives grapefruit its distinct aromatic scent. It is extracted in minute quantities from the skin of grapefruit and the bark of the Nootka cypress tree for a variety of artisanal products. Given its minute presence in the tree bark and grapefruit skin, this supply route results in prohibitively high costs. Evolva’s nootkatone is a high-purity ingredient, free of environmental contaminants and with a traceable and reliable supply chain based on fermentation — the same natural process used to make wine, beer, bread and many other products.
With its trademark aromatic scent of orange peel, Evolva’s valencene is produced from the same fermentation process. Like nootkatone, Evolva’s valencene is giving the flavor and fragrance (F&F) industry an alternative, fully traceable and reliable supply chain for this popular citrus ingredient.
Category: Producer News