Materials innovation

Mined metals recovery improvement using less energy

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Gold is near all-time market highs. This company says its microwave technology drives better gold recovery from some ores while using less energy, creating strong benefits for mining companies. Management has received initial funding through private sources and has built an operating prototype. The company believes revenue recognition opportunities exist for both equipment sales and participation in increased production, creating a strong value proposition.
Executive summary of company's business: 

Much of the world’s gold reserves that can be mined by simple techniques are becoming rarer, with many gold deposits linked with sulfur and other elements in a combination known as refractory gold ore, which need heat treatment for economic recovery.

Spheric Technologies believes it has an opportunity based on the worldwide increase in demand for gold, driving current prices over $1600 US per ounce. Over 20% of current known world gold reserves may exist in these refractory ores – with ever increasing gold prices, refractory ores are of increasing interest. The opportunity becomes not only the recovery of this refractory gold at lower cost than current methods, but also to increase the amount of gold recovered when compared with other technologies, according to Spheric. Peer reviewed scientific data confirms that microwave ‘roasting’ of these ores can increase mineral recovery.

The market, based on the number of gold mining and exploration companies, is more than 250 million ounces of proven reserves that could benefit from its technology in more than 35 mining companies worldwide, Spheric believes.

The company's product is a microwave rotary furnace intended to handle multiple tons of moderately ground ore per day; plus a technology license for the intellectual property covering the furnace and process. Spheric intends to align itself with a strong mid-tier gold producer as a champion of this approach and to ease and support market penetration.

Management believes that it has a strong value proposition for potential investors, with revenue from both equipment sales and a participation in revenue due to greater recovery. Near term developments may include equipment for microwave production of biofuels and bio-char as well, and Spheric's equipment is currently being tested for low energy input ceramics production for oil and gas.

Differentiation vs. competitors: 
Spheric uses a microwave technology that it claims can work with a variety of ores and can be easily integrated with current mills. The same technology can be used to produce biochar and ceramic components, the company says, and patent applications on this technology have been filed. Trials are underway with a ceramic material and are expected to be extended onto a mine site by late summer 2012, according to the company, with trial goals of demonstrating increased yields, lowering energy costs and reducing gaseous emmissions.
Key team members: 
Michael Kirksey, Co-founder - experience with small high growth companies with technical focus, education MBA and BS Biochemistry. Karl Cherian, Ph.D., Director Of Applied Research - education in materials and applied physics, cutting edge experience with microwave group at Dana Corp. and QQC. Milt Mathis, Ph.D., technical consultant - principal of M-Wave Consulting with expertise in materials and microwave processes, long term industrial experience with 3M Corporation. Peter Blonsky, Ph.D., Co-founder - PhD in chemistry, MBA, business development and project leader for Eagle-Picher, Moltech and other large electro-chemical concerns. Henry Frese, Director of Marketing and Sales - MBA and BS Engineering, long term experience in sales and establishing sales networks to industry, including mining sales.
Existing investors and capitalization details: 
Friends and family, small private placement in Spheric Technologies. Company has to date invested in development of technology for these applications and wants to spin mining application and possibly biochar/biofuel development off to a new separate entity while maintaining participation for original investors.
Capital sought & use of proceeds: 
The company seeks $2.5 million: $125k/month of working capital for the next 12 months, plus $300k equipment, $725k R&D.
Characteristics of ideal investors: 
Venture investors with experience in mining and energy efficiency. And mining companies interested in disruptive technology.
Expected close date: 
09/2012
Company name: 
Spheric Technologies
Contact name: 
Michael Kirksey
Contact email: 
mkirksey@spherictech.com
Web site: 
http://www.spherictech.com
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Smart glass licensed by Daimler that can reduce energy consumption 30%+

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Electrically tintable ‘smart’ glass can be changed electronically from clear to dark or any level in between in 1 to 2 seconds blocking up to 94% of solar heat. Combined with sophisticated control systems, a building's energy use can be reduced by 30%+, and fuel efficiency in cars, trucks, boats, trains and planes can be increased. This company's smart glass intellectual property is protected through three granted U.S. patents and four pending applications in the U.S., Europe and Japan.
Executive summary of company's business: 

Unlike statically tinted glass to block the summer heat, smart glass can be controlled daily year round to optimally block or utilize the heat of the sun. Smart glass could reach over $1B in yearly sales by 2017, according to forecasts.

SPD Control Systems designs and develops energy management hardware and software to control and optimize the energy savings associated with smart glass fabricated with commercially available film from Hitachi. It says it has a comprehensive patent portfolio in the U.S., Europe and Japan to protect its technology.

SPD licensed its technology to Daimler AG, which, in January 2011, released its 'Magic Sky Control' under that license. A dimmable sunroof is now in two Mercedes-Benz models. SPD says it is working with 7 other major automakers.

The company has also been establishing a relationship with a $40B+ electronics giant in the automotive and building automation industry that would also represent a potentially acquirer in the future. This partner is said to have recently accompanied SPD in a meeting with Daimler, BMW and Audi in Germany to show its support to manufacture SPD's electronics on behalf of major automakers.

SPD's initial goal is to design and sell hundreds of thousands to millions of controllers in the automotive market. Where it does not get manufacturing contracts it intends to seek licensing revenues. Although the company believes it can be very profitable in the auto industry alone, its primary target is the worldwide architectural market, where margins are higher than the auto industry. It is also targeting other forms of transportation, such as boats and trains. Short term revenues are from the automotive aftermarket where the company is not dependent on release dates for OEM production vehicles.

Differentiation vs. competitors: 
The company claims its technology is state-of-the-art and that major competitors have not yet recognized the growth potential and size of the upcoming market. It says it has protected itself with a strong patent portfolio, recognizing that competitors could technically create competitive products. Its core management are serial entrepreneurs who have prior experience in worldwide products and sale of former companies for over $100M. Further, the company claims it has over 100 man-years of high technology management experience.
Key team members: 
Jay Moskowitz - Chairman and Founder. This is Jay's 6th startup company. One of his prior firms introduced wireless messaging to the beeper industry and later to cell phones. He has over 40 years of experience in high tech product development. John Petraglia - President and CEO. John founded and operated a software consulting firm of over 30 people for 25 years, developing systems and products for major corporations and the government. Peter Solaski - CTO. Peter was a SVP of technology and product development for Reuters for 25 years. Julius Salad - VP Marketing and Strategic Planning. Julius has had similar positions at Sun Microsystems, Chiron, and Amdahl.
Existing investors and capitalization details: 
Approximately $550,000 has been invested to date by founders, friends and family and a public company in the smart glass industry.
Capital sought & use of proceeds: 
$2.4M is sought to reach a cash flow positive postion. Funds are to be used primarily for marketing and engineering.
Characteristics of ideal investors: 
An ideal investor would be one that could also be a strategic partner. Or one that could be a network of firms that could be potentially interested in the technology. A partner that brings more than just money to the table is desired.
Expected close date: 
03/2013
Company name: 
SPD Control Systems
Contact name: 
Jay Moskowitz
Contact email: 
jay@spdControlSystems.com
Web site: 
http://www.spdControlSystems.com
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New low impact refrigerant for vehicle AC systems

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The global refrigerant market of 132 Ktonnes/annum is worth over £1.32 billion/annum at UK prices. European Union legislation has called for the phase out of high global warming refrigerants. This company has just received the patents to and is bringing to market a new low environmental impact refrigerant for vehicle air conditioning systems. It now plans to license its technology to existing refrigerant manufacturers, blenders and distributors.
Executive summary of company's business: 

Earthcare holds patents which could prove disruptive to the global refrigerant market of 132 Ktonnes/annum, worth over £1.32 billion / annum at UK prices.

European Union legislation commenced the phase out of high global warming refrigerants beginning in 2011. Major users such as Unilever, Coca-Cola, McDonalds and UK supermarket companies are already committed to phasing them out. Car manufacturers urgently need alternatives for car air conditioning due to the relatively long lead time for new products.

An agreement with the Odessa State Academy of Refrigeration in the Ukraine gives Earthcare the exclusive right to commercialise its research into low environmental impact refrigerants and associated refrigeration systems that enhance energy efficiency and exceed tightening global regulations. A peer review of the IP has recently been completed by Angle plc on behalf of the Carbon Trust (details available on request).

Earthcare has been providing consultancy and environmentally friendly cooling systems to businesses and the public sector since 1997. The company has built a proven track record with an income stream from an impressive portfolio of international blue chip clients. The sales pipeline is currently worth £1.25 million.

Milestones to be achieved within 12 months of funding being in place include complete certification and validation, commitments from major end-users, exclusive manufacturing agreements, full marketing launch and expand global reach.

Differentiation vs. competitors: 
At present, car manufacturers are considering two options: 1) R1234 (difluoropropene), a low-pressure refrigerant patented by Honeywell & DuPont. It is meant to operate as a ‘drop-in’ to existing equipment; however it is unproven, expensive, and flammable, and 2) R744 (carbon dioxide / CO2), a cheap, non-flammable, unpatentable very high-pressure refrigerant. Pure R744 has some undesirable properties: its high operating pressure requires higher engineering specification cooling equipment; in the USA it is considered too toxic for car air conditioning; and it is less efficient than existing systems, especially at higher ambient temperatures. Earthcare’s alternative is ECP744, a refrigerant blend which shows significant efficiency improvements compared to pure R744, whilst also operating at significantly lower pressures than R744. The main commercial benefit arises from lower operating pressure. The high operating pressure of R744 refrigeration systems increases leakage, and requires the use of additional aluminium in the equipment. The use of ECP744 refrigerant will reduce leakage and the amount and weight of aluminium required.
Key team members: 
Nicholas Cox – Nicholas is the Founder and Managing Director and of Earthcare Products Limited. He has 29 years experience in the industry including 25 at director level and is considered a leading authority on environmentally friendly refrigeration and air conditioning. A fellow of the Institute of Sales and Marketing Management, he was awarded a graduateship of the City and Guilds of London Institute for his work on how industry could better utilise natural refrigerants and energy efficiency. He has been at the forefront of industry developments in this field since 1986 and has advised the UK government and EU on related issues. Oliver Tickell - Non Executive Director. Oliver Tickell is a journalist and campaigner on health and environment issues. He is the architect of the "Kyoto2” initiative. Associates include Dr. Victor Mazur - Professor of Refrigeration, Odessa, Chris Goodall - businessman, climate change expert, & author: 10 Technologies to Save the World, Julia Hailes MBE – environmental consultant and speaker & author: The New Green Consumer Guide, and Chris Rose – environmental communications and campaigns consultant.
Existing investors and capitalization details: 
In October 2006, £325k of investment funding was provided from the Sustainable Technology Fund which is now managed by Curzon Park Capital LLP. This comprised of a £175k loan repayable in 2012 and £150k equity investment. A further £100k of equity has subsequently been added by a business angel, Mr. Oliver Tickell.
Capital sought & use of proceeds: 
Equity investment of $5,000,000 is sought including an immediate first tranche of $1,000,000. Funding is required to complete certification and validation work, carry out demonstration projects and market trials, complete development of a new Far Eastern sourced CE marked product range, extend patent protection to three more refrigerants and carry out a full marketing re-launch of the business and global expansion.
Characteristics of ideal investors: 
Venture investors with experience in biomethanol investing. Industrial companies, or other large corporations with or without corporate venturing divisions that would benefit from disruptive refrigerant or other industrial gas innovation.
Expected close date: 
09/2012
Company name: 
Earthcare Products
Contact name: 
Nicholas Cox
Contact email: 
njc@earthcareproducts.co.uk
Web site: 
http://www.earthcareproducts.co.uk
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Wood alternative made from rice waste and recycled plastic

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This company has patented an alternative material to wood for green building applications. The company's material is made from recycled plastic and rice waste, and can be used in industries such as construction, furniture, automotive and marine. The company claims its material has competitive advantages over standard wood, and expects it can produce its products even cheaper than wood today.
Executive summary of company's business: 

Turn Green Solutions, formerly known as Hodapen, seeks to make a dramatic improvement in the environment by addressing the major global problem of deforestation. It makes a wood substitute that is more durable, fire resistant, water resistant, and termite proof than wood, and takes waste materials normally discarded in environmentally counter-productive ways and creates a green product that can be utilized in green building.

Turn Green's innovative patented technology provides an alternative to wood made from recycled plastic and rice plant ("hull") waste and can be used in industries such as construction, furniture, automotive and marine. It claims its products have unique competitive advantages over standard wood, and offer outstanding strength and surface finish.

The company aims to become a leader in providing durable, environmentally friendly green building materials while creating value and sustainability in local communities and organizations.

Differentiation vs. competitors: 
Turn Green's wood replacement offers unique competitive advantages over standard wood and wood composite products, the company says. The company has achieved superior water, fire and pest resistance properties, it claims. Its invention also consumes waste materials normally discarded in environmentally counter-productive ways. The company also estimates its products can also be slightly cheaper than wood composite products, given that its our raw materials are waste, which reduces the cost of production.
Key team members: 
Anthony Davani (Co-Founder/CEO) is a serial entrepreneur who has started 3 profitable companies in the past 5 years. Prior to starting his own business, Anthony was hired by REIDIN.com to strategize and execute a sales and marketing strategy for the international market. Anthony brought in over 200 corporate clients and expanded and opened international offices in Hong Kong, London, and Istanbul. After leaving REIDIN.com, Anthony founded UnidUS Western solutions, a promotional marketing company which under it he created Open Mic Dubai, which he developed and eventually sold concept rights to MTV Arabia. The project was a huge success in Dubai, gaining recognition from national and regional media; including television, newspaper, and radio. He then started Address Consultancy, a recruitment firm focusing on the placement of high level executives in the Oil & Gas sector. In April 2010, he co-founded Eagle Oil Services, which provides oilfield drilling equipment in the Middle East and Southeast Asia. Aryan Davani (Co-Founder/COO) developed a three-state territory for a global leader in paperless payment solutions. He built a customer base of 900+ and managed a payment agent network of 3,000. Aryan called on small and large businesses, met with CEOs, made presentations, negotiated contracts and closed sales. He helped establish and managed 900+ accounts and coordinated all phases of the sales cycle - from prospecting through system implementation and customer training / user support. He achieved a revenue target of $1.2 million. Non-executive directors include Cambridge Consultancy personnel.
Existing investors and capitalization details: 
The company has been self funded to date.
Capital sought & use of proceeds: 
The company seeks $5M to set up a new factory in the U.S. to meet a purchase order worth $15M in a first year and $30M second year.
Characteristics of ideal investors: 
The company seeks an investor that can add value through experience, network, and distribution channels. Ideal investors will have experience and/or access to manufacturing and construction markets focusing on green technology and green building materials.
Expected close date: 
03/2013
Company name: 
Turn Green Solutions, FKA Hodapen
Contact name: 
Anthony Davani
Contact email: 
anthony@turngreensolutions.com
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Hypoallergenic natural rubber extraction technology for $65B market

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This company has developed a clean process for the extraction of natural rubber from rubber bearing plants and designed an automatic and continuous rubber extractor. Instead of using chemicals, solvents or water, the extraction process is dry, which is environment-friendlier, more efficient and less cost-intensive compared to competing technologies, according to the company. In addition to selling extraction equipment, the company intends to itself produce natural rubber, hypoallergenic latex and inulin – a prebiotic food additive that can also be used in the production of ethanol.
Executive summary of company's business: 

KOK Technologies Inc. (KTI) says natural rubber and hypoallergenic latex are vital to every economy. The company has developed processes to extract rubber from special rubber-bearing plants that can be quickly grown in northern climates, unlike conventional slow-growing rubber trees indigenous to tropical climates.

Natural rubber is used in the production of car tires, airplane tires and medical rubber products. According to the company's analysis the market is expected to grow more than 10% per year due to the increasing demand for tires from China and India's fast growing economies. KTI estimates the value of the market today is $55 billion and expects it to grow to $100 billion by 2020.

KTI plans to target-market latex made from rubber-bearing plants to the high value sector represented by medical, dental, military and household products due to its excellent hypoallergenic characteristics. The company says total demand for hypoallergenic (non-rash) latex is 1 million tons annually for production for gloves, condoms, catheters, etc. with an estimated $10 billion market value. It estimates demand for inulin is 100k tons today and rapidly growing due to health and ethanol industry use. KTI estimates its technology will enable it to capture 10% of this $65B dollar market.

KTI states that additionally to its patented extraction technology it has completed development of a proprietary rubber extractor (machine design is patent-pending).

The company's business model:

  • Phase 1: Build and sell the proprietary rubber extractor
  • Phase 2: Build, own and operate several extraction facilities comprising from 4 production units
  • Phase 3: Grow rubber plants and produce commercial quantity of high quality seeds
  • Phase 4: Extract, purify and sell natural rubber and inulin to the medical and industrial users
Competitors: 
Delta Plant Technologies, Kultevat, PENRA, EU-PEARLS
Differentiation vs. competitors: 
KTI believes it is ahead of competitors and first in the market. It says its competitors do not own patented green and dry extraction technology. It states its technology is superior to competing technologies regarding environment-friendliness and cost advantage (due to the use of dry media, no water consumption, higher efficiency, and less labour requirements).
Key team members: 
Dr. Anvar Buranov – inventor and founder, PhD, 17 years of R&D and management experience, published 15 papers, 2 patents and conference presentations; Mr. Jason Rite - business development manager, serial entrepreneur with 40 years of business experience; Mr. Otto Baumgartner - design and engineering of rubber extractors/grinders; Mr. Evan Baergen – finance and accounting, BBA and MBA; advisors: Dr. John Kelly (Ontario) & Dr. Bob Ingratta (BC).
Existing investors and capitalization details: 
The company states it prototyped with friends and family funding from June 2009 until January 2010. Currently: Non-dilutive funding, US Civilian R&D Foundation Grant ($66 K), Canadian NRC –IRAP grant ($44 K), Quebec government ($150 K), Ontario government ($ 143 K).
Capital sought & use of proceeds: 
The company is seeking $300 K for 10% of the company. The company intends to use $100 K for building 5 rubber extractors and purification units, and $200 K for seed production activities (on 20 ha of land).
Characteristics of ideal investors: 
Investors with experience in agriculture, bioproducts, agricultural machinery and engineering are preferred by the company.
Expected close date: 
10/2012
Company name: 
KOK Technologies
Contact name: 
Dr. Anvar Buranov
Contact email: 
buranov@koktech.com
Web site: 
http://www.koktech.com
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Unique bioplastic technologies for large customers in increasingly attractive market

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$430 billion worth of plastics are produced each year. Traditionally, plastics are made from crude oil and natural gas, unstable and increasingly expensive feedstocks. The plastics industry is just beginning to convert to bioplastics (plant-based plastics) as sustainable alternatives to these petroleum-based plastics (see http://tinyurl.com/yct3nad). In R&D; for over 4 1/2 years, Solegear Bioplastics appears to have unlocked unique technologies allowing bioplastics to access performance levels and applications previously thought not possible. The company is currently in the early commercialization stage of its development and preparing for its initial growth.
Executive summary of company's business: 

The $430 billion global plastics industry has grown to become the largest manufacturing materials industry in the world on the back of cheap and abundant crude oil. Today, we know that this feedstock is becoming increasingly finite, increasingly risky to use and poses health risks that we are just becoming aware of.

Solegear manufactures proprietary bioplastics under the brand names Polysole and Traverse, and expects to sell directly to customers from manufacturing/distribution locations. This plan calls for the use of contract manufacturing partners and in-house manufacturing, a standard model used in the plastics industry. The CapEx required to install each in-house manufacturing facility is less than $800k, with potential annual revenues in the $6 million range, has a payback period of 8 months and increases gross margins by 15 points. These facilities are modular and can be installed in logistically advantageous locations.

Customers see value in working with the company's materials on several fronts: firstly, Solegear materials can provide superior strength and ease of processing. Secondly, Solegear materials are offered at comparable prices to petroleum-based plastics, and in some cases, will be cheaper on a per-pellet basis. Thirdly, customers are intended to save money by using 25% less energy to process Solegear materials. Lastly, Solegear materials are turnkey and don't require any re-tooling or special configurations at the customer's processing location - they are plug and play, the company claims.

The company intends to take a staged approach to building out commercial opportunities, first focusing on consumer durables including markets such as children's toys, durable food and cosmetics packaging and personal care products. Solegear is currently engaged in commercializing projects with mid to large sized customers in these markets, which would produce several million dollars' worth of revenues for the company.

Competitors: 
Cereplast, Metabolix, NatureWorks
Differentiation vs. competitors: 
Solegear says it is able to achieve higher performance levels with its materials, from a strength and ease of processing standpoint. The company is also expecting to soon deliver increased performance on thermal stability. This increased performance is delivered with clearly defined sustainability advantages to support customer marketing programs. Solegear claims it has trials underway with medium to large sized companies in its target markets and is expecting to deliver these added values to customers at pricing that is expected to be equal or cheaper to its competitors.
Key team members: 
Toby Reid, Founder & CEO, has a background in marketing and finance and has worked in the financial industry in securities trading and sales (RBC Dominion Securities), as well as in sales and investor relations for a publicly listed cleantech issuer (Naturally Advanced Technologies). Reid is an ambitious and motivated entrepreneur, coming from family of agricultural entrepreneurs. He has won several awards for the development of Solegear, and was most recently nominated for the 2011 National Manning Innovation Award for his work in the field of bioplastics. Brian Gusko, CFO, formally joined Solegear after several years on the Company's board of advisors. Brian is a CFA candiadate, with an MBA in finance from the University of Calgary. Brian has a strong track record of financial management and governance for private and publicly-traded companies, where he has held positions of Investor Relations, CFO and Director. Brian joined Solegear early in 2011 as part of the company's corporate planning for the next stage of its development. Dr. Christo Stamboulides, R&D Manager, has been working on the Solegear project for over 3 years. As a formally trained chemical engineer, Christo has a background specializing in polymer engineering and rheology characterization. Christo is also an advisor to the Canadian Olympic Committee with a specialty in developing high-performance ski bases for the Canadian Alpine Team. Solegear is also planning to add to the team with a Chief Technology Officer and a VP Business Development. These are the final additions to be made to the team as part of the company's planning for the next stage of its development. Both these positions are expected to be filled in the coming weeks, and the company is in discussions with several candidates at this point.
Existing investors and capitalization details: 
Solegear has been supported by investment from the founder, friends & family and angel investors ($400k). In addition, the company has received $75k R&D grant funding from the Canadian NRC's Industrial Research Assistance Program (IRAP) as well as prize money from new business competitions ($115k).
Capital sought & use of proceeds: 
Solegear is in the process of seeking $1,000,000 of commercialization financing from Angel and Private sources, expected to close at the end of March 2011. These funds are expected to go towards raw materials purchases (40-50%), business development activities (20-25%), patents and certifications (20%), equipment and facilities (10-15%) and general overhead (5%). The company expects to then raise its first round of institutional funds (Series A) in the summer of 2011 in the range of $5-8 million.
Characteristics of ideal investors: 
Angel, super angel and angel or PE funds that invest in early stage businesses in the chemicals and/or manufacturing space. Experience within the plastics industry is an asset. Series A investors could be VCs with experience in the biopolymers space and/or plastics companies looking for highly profitable businesses to partner with to give them exposure, or increased success, in the bioplastics space.
Expected close date: 
12/2011
Company name: 
Solegear Bioplastics
Contact name: 
Toby Reid
Contact email: 
treid@solegear.ca
Web site: 
http://www.solegear.ca
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Profitably producing bio-chemical glycols from byproducts

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S2G Biochemicals Inc. is a private company located in Vancouver, British Columbia, Canada that is poised to build commercial plants based on its “Sugar-to-Glycol” technology for the production of low-cost and sustainable biochemicals from byproduct or surplus materials. Sugar-to-Glycol is a patented hydrotreating process that generates valuable propylene and ethylene glycol from a range of abundant feedstocks. This allows S2G to add value to the byproduct glycerine from biodiesel companies; cellulosic ethanol companies to create profitable revenue streams from their challenging wood-based sugars; and forest products or agricultural companies to change waste pulp liquors, wood slash, straw, corn stover and other low-value biomass from a problem into a business opportunity.
Executive summary of company's business: 

The $20 billion propylene and ethylene glycol market is currently supplied with petrochemicals derived from oil & gas, with associated cost, environmental and sustainability issues. Major users of glycols, such as Arch (personal care products), Proctor and Gamble (liquid detergents and personal care products), Prestone (antifreeze), M&G (PET bottles for Coke, etc,) and Tier 1 auto parts companies, are facing increasing pressure from their customers (Walmart, Coke, OEM’s, etc.) to convert to sustainable biochemicals to produce their products.

S2G Biochemicals Inc is a private company located in Vancouver, BC, Canada that is poised to build commercial plants based on its “Sugar-to-Glycol” technology for the production of low-cost and sustainable biochemical glycols from byproduct or surplus materials. Sugar-to-Glycol is a patented hydrotreating process that generates valuable propylene and ethylene glycol from a range of abundant feedstocks. This allows S2G to add value to the byproduct glycerine from biodiesel companies; cellulosic ethanol companies to create profitable revenue streams from their challenging wood-based sugars; and forest products or agricultural companies to change waste pulp liquors, wood slash, straw, corn stover and other low-value biomass from a problem into a business opportunity.

S2G licensed its technology to a Chinese company that is successfully producing biochemical glycols for the Chinese market. S2G is currently undertaking a $4.3 million pilot project in Vancouver to demonstrate the technology with partner byproduct sugars. This will be the springboard to commercial projects in NA and beyond. S2G has a pipeline of projects with site, feedstock, channel to market and partners lined up. S2G is now seeking a financial partner to help it raise capital to secure a significant ownership position in its first commercial project, and then continue the build-out to capitalize on this opportunity.

Competitors: 
Archer Daniels Midland, Global BioChem Technologies
Differentiation vs. competitors: 
1) Use of cellulosic sugars, 2) Low cost, durable catalyst, 3) Distributed production at a scale that matches available supplies of low-cost, byproduct sugars.
Key team members: 
Mark Kirby, P.Eng President & CEO Senior management at Praxair (Director), QuestAir (VP), Ballard (Director) where he successfully developed and commercialized novel technologies & businesses. Ran operations for division of Praxair overseeing growth from $80 to $140 million. Developed and managed senior strategic relationships – e.g.: ExxonMobil, Ebara, Baxi Innotech, Linde. Managed $100 million divestiture of Ballard’s automotive fuel cell business to Daimler. Terry Brix, M.Sc, MBA Chief Technology Officer President & Founder of International Polyol Chemical Inc. Developed Sugar-to-Glycol technology. After working with Battelle Memorial Institute for thirteen years, Terry started the first of his 18 technology based companies in 1980. Established and leads world's largest iodine production facility. Co-founder of Cyanotech (one of the first publically traded microalgae companies (spirulina) Greg Barrett, CA CFO International financial experience Consulting (PWC, Nuli) and senior management in public companies David Pfeil, P.Eng VP Engineering 20 years of experience focused on business development, project management, engineering, and construction of oil, gas and clean fuel technology projects in Canada, USA, Europe and Africa. Prior to joining S2G Biochemicals he worked for Methanex Corporation and Plug Power Inc. where he held the position of Director of Hydrogen Energy. Dr. Bill McKean Lead Expert & Project manager Professor Emeritus at the University of Washington School of Forestry.
Existing investors and capitalization details: 
The company has secured partners, governmet financing, pilot equipment and undertaken technolgy development with $300,000 investment by the founding companies: Sacre-Davey Engieering, HTEC Hydrogen Technology & Energy Company and International Polyol Chemical Inc., plus investments by management, friends and family. The company is in the midst of an angel round which has secured a further $200,000.
Capital sought & use of proceeds: 
The company is seeking $10 million to construct and secure a significant (30-40%) ownership position in a first commercial plant, which is to have an installed capital cost of $25 million. Balance to be held by feedstock supplier and equipment fabricator. Position company for a liquidity event by developing additional projects.
Characteristics of ideal investors: 
Experience in biochemicals investing.
Expected close date: 
01/2013
Company name: 
S2G Biochemicals
Contact name: 
Mark Kirby
Contact email: 
mkirby@s2gbiochem.com
Web site: 
http://www.s2gbiochem.com
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