Friday, October 7, 2011

This investment was part of the partnership agreement, signed in July 2011. It was calculated on the basis of a €23.48 share value. Accordingly, Synthos now owns a 3.6% stake of Global Bioenergies.

Since 2008 Global Bioenergies has been developing a process to convert renewable resources into isobutene, one of the most important molecules in the chemical industry, which is easily converted into fuels, plastics and elastomers. In July 2011, Global Bioenergies and Synthos signed a partnership agreement to develop a biological process for the production of a second molecule, butadiene.

Approximately 10 million tons of butadiene are produced every year from oil, two thirds of which is used to manufacture synthetic rubber. The last third is used to produce nylon, latices, ABS plastics and other polymers. The global butadiene market has an estimated value of $30bn.

This new butadiene program is similar to the development already carried out on the isobutene program since it is based on the same innovative platform of synthetic biology. Its commencement represents an important step in constituting a portfolio of bioprocesses focused on the conversion of renewable resources to olefins which include isobutene, butadiene and four other molecules, those chemical building blocks representing a market of $300bn.

The partnership agreement signed with Synthos in July 2011 foresees shared responsibilities during the project: Global Bioenergies will be responsible for research and development at the laboratory level, with Synthos subsequently taking the process on to the industrialization stage. Under the terms of the agreement, Global Bioenergies would receive R&D funding, multi-million euro development fees and royalty payments for Synthos’ exclusive usage of bio-butadiene for the manufacturing of synthetic rubber.

Global Bioenergies will retain exclusive rights on the other applications (nylon, latices, ABS plastics and other polymers), which represent a market of $10bn.

The agreement also provides for a €1.4m equity investment of Synthos in Global Bioenergies, whose Board of Directors, on September 6th , acknowledged the realization of this investment based on a share price of €23.48. This investment has been completed through a reserved capital increase, according to resolution 25 of the General Assembly of May 12th 2011, which assigned the achievement of the operation to the Board of Directors.

Marc Delcourt, CEO of Global Bioenergies, states: « The strategic alliance with an industrial leader like Synthos confirms the soundness of Global Bioenergies’ technology. The additional funds will enable the development of the butadiene program under optimal conditions. The funds raised through our recent IPO will stay focused on the industrialization of our process to convert renewable resources into isobutene».

About Global Bioenergies

Founded in 2008 by Marc Delcourt and Philippe Marlière at Genopole (Evry, France), Global Bioenergies is one of the few companies worldwide, and the only one in Europe, that is developing a process to convert renewable resources into hydrocarbons through fermentation. The Company initially focused its efforts on the production of isobutene, one of the most important petrochemical building blocks and can be converted into fuels, plastics, organic glass and elastomers. Global Bioenergies continues to improve the yield of its process and prepares the phase dedicated to pilot testing. The company is also looking to replicate this success with other members of the gaseous alkene family (propylene, ethylene, linear butylenes, butadiene…), key molecules at the heart of petrochemical industry.

Contacts

GLOBAL BIOENERGIES
Marc DELCOURT - Chairman and CEO
Liliane BRONSTEIN - CFO
E-mail : invest@global-bioenergies.com
Tel : + 33 (0) 1 64 98 20 50

NEWCAP
Emmanuel HUYNH
Camille MacFADYEN
E-mail : globalbio@newcap.fr
Tel : +33 (0)1 44 71 94 99