Algae.Tec (ASX:AEB) announced that it received US$1-million investment into the company from Gencor Pacific, the global Lifestage Solutions company.
In a disclosure to the Australian Securities Exchange, Algae.Tec said the investment will enable the company to accelerate the development of its production capacity and improve the efficiency of its nutraceutical plant, expand its laboratory capabilities and cater to the demand for nutraceutical products for Gencor’s clients.
The investment is in the form of a secured convertible note with an exercise price of
$0.10c, a premium of 100% over the current trading price, with a term of 18 months and an interest rate of 10% per annum.
“We are excited at being able to make this first investment in Algae.Tec and are looking forward to assisting in their development and being part of a rewarding and profitable partnership,“ said Gencor Pacific managing director R.V. Venkatesh.
Algae.Tec recently announced the signing of a supply agreement with Gencor, whose clients include some of the largest nutraceutical and pharmaceutical companies in the world.
Gencor has agreed to purchase the full production of Algae.Tec’s nutraceutical plant.
“This is further endorsement of Algae.Tec and demonstrates the importance of our relationship to Gencor. This developing partnership will take Algae.Tec to a new level, enabling it to accelerate and increase its production and to develop new, exciting products for global distribution. The market for proven health supplements is rapidly growing and this partnership puts us at the forefront,” Algae.Tec managing director Peter Hatfull stated. – BusinessNewsAsia.com