Lysac Group gains $5 million in new financing
Boucherville, July 7, 2004 – Lysac Group Inc. (the Company) announced today that the Solidarity Fund QFL, Desjardins Venture Capital, the Société générale de financement du Québec (SGF) and the National Research Council of Canada (NRC) have together invested a total of $5 million in the Company. Founded in 1998, Lysac Group focuses on fine chemicals, conducting research, development and international commercialization activities related to superabsorbent polymers.
The Solidarity Fund QFL led this financing round as a new investor, injecting $3.5 million into the Company’s capital stock. Additional funds from existing investors completed the arrangement, with Desjardins Venture Capital and the SGF each bringing in $500,000. Meanwhile the NRC provided a refundable financial contribution of $500,000 under its IRAP-TPC pre-commercialization program.
“We are very pleased to obtain the backing of the Solidarity Fund and the NRC in completing this financing round while benefiting from the continued support of our original investment partners,” stated Stéphane Chevigny, the Company’s founding president. “Lysac has brought an outstanding team of investors together around an innovative product with huge potential and a high-calibre intellectual property portfolio.”
These new funds will be used to complete the development and industrial scale-up of a new superabsorbent intended for markets such as baby diapers and adult incontinence products. “The financing will also be used for setting up strategic alliances with major industry players to speed up the marketing of our products,” Mr. Chevigny indicated.
The Company engages in commercial development activities on five continents and is a pioneer in the field of non-abrasive absorbent polymers made of natural materials from renewable resources. SNAPs (Safe and Natural Absorbent Polymers), developed by the Company as an alternative to petrochemical-based superabsorbents, have the triple advantage of being hypoallergenic, biodegradable and inexpensive to produce. They are safe for users and respect the environment.
Lysorb™, the star product in this new generation of superabsorbents, is intended for the manufacture of personal hygiene items including baby diapers, feminine hygiene products and adult incontinence products. Lysac has already reached agreements in several parts of the world with well known players in the personal hygiene products industry, an overall market worth an estimated US$40 billion. Unlike traditional superabsorbents, Lysorb enjoys particular visibility among final consumers of hygiene products through a brand alliance program under which the Lysorb logo appears on the partner company’s products and promotional material. Sorbfresh™, another innovative product from the Lysac range, is among the first superabsorbents made with substances approved by Health Canada, the U.S. Food and Drug Administration (FDA) and the relevant European Union authorities for direct contact with food, free of health risks. It goes into food pads used as a packaging material for fresh meats and other foods, soaking up excess liquid generated by these items.
SOLIDARITY FUND QFL (FONDS DE SOLIDARITÉ FTQ)
With assets of over $ 5.2 billion, the Solidarity Fund QFL is a development capital fund that through its RSSP channels the savings of Quebecers to help create and maintain jobs in companies and contribute to the economic development of Québec. The Fund currently has over 555 0000 shareholders and has helped, either on its own or with other financial partners, create, maintain or support over 91 000 jobs. (www.fondsftq.com)
DESJARDINS VENTURE CAPITAL
Established in 1974, Desjardins Venture Capital is the venture capital fund management arm of the Mouvement des caisses Desjardins. It manages the assets of Desjardins, six regional investment funds and Capital régional et coopératif Desjardins, a publicly-traded fund created in 2001 whose authorized capitalization is $1.375-billion. More than a financial partner, Desjardins Venture Capital makes its network and expertise available for businesses in their startup, growth and expansion, as well as their plans for mergers, acquisitions or public offerings. More than 165 companies are already associated with Desjardins Venture Capital. (www.dcrdesjardins.com)
SOCIÉTÉ GÉNÉRALE DE FINANCEMENT DU QUÉBEC
The Société générale de financement du Québec (SGF), an industrial and financial holding company, has the mission of fulfilling economic development projects, especially in industry, cooperating with partners under normal earnings conditions, in keeping with Quebec government economic development policies. (sgfqc.com)
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For further information, please contact:
Desjardins Venture Capital
Solidarity Fund QFL
Lysac Group Inc.
Société générale de financement du Québec