Carbios (Paris:ALCRB)(Euronext Growth Paris: ALCRB), a trailblazer in the development of enzymatic solutions for the end-of-life of plastic and textile polymers, and the European Investment Bank (EIB) today announced the signing of a €30 million loan agreement supported by the European Commission’s InnovFin Energy Demonstration Programme.
The goal of this type of funding is to assist high-potential innovative initiatives developed by enterprises with the goal of achieving transformative changes in line with EU climate goals and contributing to EU industry leadership in the development of sustainable technologies. Carbios’ world-first enzyme-based methods, which have the potential to contribute to the plastics industry’s sustainability, fully meet these criteria.
In this context, and following a thorough examination of Carbios’ business model and the EIB’s due diligence over the past year, this loan has been granted to support the strategic industrial and commercial development of Carbios’ PET1 enzymatic recycling technology, which aims to convert post-consumer PET plastic and polyester fibers to their original building blocks (monomers) through a biological enzymatic depolymerization process.
Carbios’ ability to solve the growing concern of plastics pollution through the development of its enzymatic recycling method, a disruptive technology that could hasten the transition to a plastics Circular Economy, is reflected in the EIB loan contract announced today. Unlike traditional recycling methods, Carbios technology breaks down PET plastic (the most common polymer in bottles, trays, and polyester textiles) into its constituent monomers, which may then be utilized as feedstock for new 100% recovered PET appropriate for all original applications. Carbios’ proprietary process would allow PET plastic manufacturers to substitute petrochemicals with monomers derived from PET trash at an industrial scale, resulting in new goods containing 100% recycled PET.
The EIB disbursed this €30 million loan in one single tranche, with a fixed semi-annual interest rate of 5% and an 8-year maturity. Carbios will issue 2.5 % of its fully diluted share capital in warrants to the benefit of the EIB, of which 1.25 % will have an exercise price of EUR 40 per share and 1.25 % will have an exercise price of EUR 38.8861 per share, corresponding to the volume-weighted average of the trading price of an Ordinary Share of the Company over the last three (3) Trading Days preceding the date on which the warrants will be issued.
The creation and issuance of these EIB warrants, and thus the disbursement of the €30 million loan is subject to the approval of a delegation of authority to the board of directors by an extraordinary shareholders’ meeting of Carbios scheduled for the first quarter of 2022, as well as a decision by the board of directors of the Company using such delegation of authority.
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