Investments: Avantium secures EUR10 mn financing for short-term liquidity; Novoloop raises US$21 mn funding to advance chemical recycling

Dutch renewable materials firm Avantium NV has announced that it has secured EUR10 million financing to address its short-term liquidity needs. This financing includes (a) access to the second tranche of EUR4 million under the EUR9.9 million subordinated loan from the Province of Groningen, and (b) a EUR6 million drawdown from the EUR20.1 million increase of the senior debt financing facilities provided by the Lenders (Invest-NL, ABN AMRO, ING, ASN, Rabobank).

This EUR10 million financing provides Avantium with short-term liquidity, enabling the Company to continue pursuing medium and long-term funding options.

Avantium has previously communicated its strategy to raise additional funding to ensure that it is sufficiently capitalised. The company says it is actively exploring various funding options (including equity, debt and government funding) and is in continuous discussions with relevant parties, including its Lenders and several government institutions. Given the ongoing discussions, Avantium has not been in a position to raise additional equity on the capital markets at this time.

In parallel, Avantium has implemented strict cost controls while exploring further funding opportunities. Aligned with the strategic prioritisation of its FDCA and PEF technology, the company has initiated a comprehensive review of all other business units, including the R&D Solutions business unit and the Volta Technology platform.

As part of this review, Avantium is engaged in ongoing discussions with external parties regarding a potential (whole or partial) transfer of ownership of Avantium R&D Solutions and Volta Technology. This could involve a full divestment of the associated assets and/or the formation of a partnership with a strategic or financial investor to support the funding of the next phase of technology development.

In other news, chemical recycling firm Novoloop has successfully closed its Series B funding round led by Taranis, an investment and impact project development entity of the Perenco Group. The investment will accelerate Novoloop’s commercial scale-up of its proprietary Lifecycling technology, which transforms post-consumer PE into polyol and polyurethane, and support the launch of key customer programs.

This latest funding round brings Novoloop’s total capital raised to over US$50 million and marks a continuation of the company’s significant momentum, demonstrated by achieving continuous operations at its demonstration plant in India, strategic partnerships with world-leading PU producers in China, and progress toward siting its first commercial facility. With continued backing from existing investor Valo Ventures, the round also welcomed new investment from SHOP Limited, the Family Office of the Bata Shoe Company.

Taranis brings technical expertise in scaling pioneering industrial technologies and solutions that enable the circular transformation of hard-to-abate sectors.

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