Cleantech Building Materials: Signing of a €25,500,000 Subscription Agreement to finance the first Accoya® wood factory in Asia
CLEANTECH BUILDING MATERIALS PLC, NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
TICKER: CBM
ISIN: GBOOBD1LVD21
30 December 2022
Cleantech Building Materials PLC
Cleantech Building Materials PLC announces the signing of a €25,500,000 Subscription Agreement to finance the first Accoya® wood factory in Asia
Cleantech Building Materials PLC (“CBM” or the “Company”) is pleased to announce that the subscription agreement signed in July 2019 with a family office (the “Investor”) has been increased from €15,000,000 to €25,500,000. The Company will use these funds to finance its share of the circa €100 million total project costs to construct the first Accoya® wood factory in Asia, including common infrastructure to accelerate future capacity growth to a targeted 240,000 m3 of Accoya® per annum.
On 31 March 2021 CBM announced that its subsidiary, Diamond Wood, had entered into a Joint Venture Contract with Nantong Acetic Acid Chemical Company Ltd (“NTAAC”), an international chemical group with a large share of the US market for food preservatives. NTAAC and Bank of Jiangsu will provide circa 75% of the remaining equity and debt financing for the construction of the Asian Accoya® factory. Diamond Wood will remain a majority shareholder of the Joint Venture.
Under the terms of the increased subscription agreement, the Investor will purchase shares in CBM at €1.25 per share for a total equity investment of €25,500,000 in accordance with the milestone timings and amounts agreed in the Joint Venture Contract. In consideration of the long term support and commitment by the Investor, the Company has also agreed to issue the Investor with 9,240,000 warrants to subscribe for ordinary shares in CBM. The warrant exercise price is €1.25 per share, the same price that the Investor will subscribe for ordinary shares in the Company. The warrants must be exercised by no later than 27 December 2029.
Accoya® Wood is a high-performance material that is used by architects and manufacturers to replace endangered tropical hardwoods and carbon-intensive materials – like steel, aluminium and specialty plastics. Asian governments are increasingly requiring climate-tech solutions, such as Accoya® Wood, for newly built cities and suburbs. The World Bank forecasts that some 60 to 70 million people will be added to the Asian urban population each year for the next 30 years, one of the most impactful megatrends of the 21st century.
Accoya®-branded wooden products – such as windows, doors, decking and siding – are enjoying widespread acceptance in the European and US markets, and have been used in over 5,000 projects across Asia. The Company has already begun to receive enquiries for China-produced Accoya® Wood from around the world.
Commenting, Paul Richards, Chairman of Cleantech Building Materials, said: “We are delighted to have the ongoing financial backing of this important investor, which positions CBM to quickly grow its capacity in line with forecast demand.”
This press release constitutes inside information that CBM is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014.
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
Further information may be found at the Company's website at or by contacting:
| Cleantech Building Materials plc Adrian Wyn-Griffiths | 0 |
| Keswick Global AG (Certified Adviser) | 5 |
| IFC Advisory Limited (Financial PR) Tim Metcalfe Zach Cohen | 0 |
