Cathay Industrial Biotech Ltd. Completes US$52 Million Series B Financing
December 4, 2006
Cathay Industrial Biotech Ltd. (CIB) today announced the closing of its US$52 million Series B financing. With the US$26 million Series A financing closed earlier this year, CIB has raised a total of US$78 million in 2006.
Series B Investors include Goldman Sachs (GSPS Asia Ltd), Gramineae Holdings Company Limited, GM Investment Company Limited, and New Horizon Evergreen Investment Co, Ltd. Series A investors collectively also participated in the Series B financing.
The fund raised in the financings will be partially used to improve Cathay's long chain dibasic acids (DC) production technology by replacing the starting raw material from the traditional alkane (petroleum product) to renewable bio-materials. This conversion is expected to reduce Cathay's dependence on the petroleum product, and to allow Cathay's and Cathay's customers' products to carry a “green and renewable” label. Part of the fund raised in the financings will also be used to start a new “green energy” and renewable bio-material program which is expected to be designed to convert starch and fiber into an unique type of bio-fuel with better burn energy than ethanol.
“We are very proud with the successful closing of two consecutive rounds of financings by Cathay in 2006. The most reputable international venture capital funds now have joined us in our effort to develop Cathay into a world class industrial biotech company,” said Dr. Xiucai Liu, Cathay's founder, Chairman and CEO. “The combination of world-wide bio-energy and bio-material market and the world-class venture capitals provided us with the best business opportunity. We will not miss such a great opportunity.”
Cathay Industrial Biotech (CIB) is a leading industrial biotechnology company of China headquartered in Shanghai Pudong Zhangjiang High-Tech Zone. Cathay is currently the largest producer of bio-processed DC in the world. Through Cathay's biotech process, the DC products are tailored to many applications such as new types of high quality nylons, special fragrance, adhesives, superior anti-corrosive chemicals, and high-grade powder coating for cars to name a few of the applications. These products are used in automobiles, electronics, cosmetics, and many other industries.
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