New Zealand-based biotechnology company PharmaZen has received a NZD 14 million ($9.94 million) investment from ADM Capital’s Cibus Fund.
PharmaZen – which trades as Waitaki Biosciences – develops, manufactures and distributes a portfolio of nutraceutical ingredients including marine and bovine collagen, fruit extracts and protein ingredients.
These ingredients include greenshell mussell powder, shark cartilage powder and blackcurrant extracts, to support areas such as joint, bone, muscle and digestive health.
Cibus Fund, meanwhile, is an agri-technology investment fund established by ADM Capital, which invests in “sustainably run” food and agriculture companies.
Cibus Fund will acquire a 13.8% stake in PharmaZen as a result of this transaction, and the capital raised through the investment will reportedly be used to expand PharmaZen’s production capacity amid growing demand for its nutraceutical ingredients.
According to a release, a new 3,000 square-metre production facility will be constructed on PharmaZen’s existing site in Rolleston, New Zealand, which is expected to be operational in August 2021. Once completed, the site will house three more two-tonne freeze dryers, as well as new extraction facilities and an expanded marine collagen plant.
PharmaZen also reportedly plans to purchase another hectare alongside the existing Rolleston site, with proposals for a further 3,000 square-metre factory currently being outlined, with an anticipated build date of mid-2021.
Damon Petrie, investment director at ADM Capital and a member of the Cibus team, will join the PharmaZen board as a non-executive director once the transaction is completed.
Petrie said: “PharmaZen occupies a unique position on the world stage and is well placed to benefit from the strong growth we are seeing in international Nutraceuticals markets, now forecast to grow to become a $722 billion industry by 2027 from $383 billion in 2019.
“Its portfolio of nutraceutical ingredients and its AiOra® range of branded products are high quality and aimed at fast-growing market segments. The range also benefits from New Zealand’s clean green reputation and the country’s record for producing high-quality food and ingredients.”
© FoodBev Media Ltd 2020
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