Alright the chart is not pretty. But I can argue it's just starting to look interesting to an avid bottom watcher.
$6.60 is where the stk should trade.
May 17 & may 19 a doublebottom was made @ $5.40
YTD breakdown from $7----> $5.40//
Financing the future of plastic
Avantium began as an international consortium of strategic, financial and university partners when it was spun out of Shell and has since been through multiple rounds of funding. In 2008, when Shell sold its stake, Avantium completed a €18 million private financing round, in which ING Corporate Investments, Aescap, Capricorn Cleantech Fund and Navitas Capital participated. In 2011, it raised €30 million to advance its YXY technology from Sofinnova, De Hoge Dennen and Aster Capital.
Most recently, in 2014 Avantium closed a financing round of €37 million from a strategic consortium comprised of packaging company ALPLA, The Coca-Cola Company, Danone, Hong Kong conglomerate Swire Pacific, and existing shareholders. “Attracting strategic investors showed that Avantium’s initial risk profile has been reduced and that commercial deployment is within reach,” notes Van Aken. Proceeds from the most recent funding will be used to complete the industrial validation of PEF and finalise the engineering and design of the first commercial scale plant, which will be located in Europe and is scheduled to begin operations in 2018.
“Further rounds of investment will be required to build and operate the facility,” explains Van Aken. “Once we shift to a period of earning income from selling products in the market and selling licenses to our YXY technology, an IPO could well be part of our financing strategies, as it would provide access to new sources of equity that could help to accelerate our growth ambitions.”
Throughout its history, Avantium has also benefited from public sector support. A credit loan from the Dutch government, which is repayable only if the project is financially successful, enabled it to build a pilot plant where a team of about 25 work 24 hours a day, seven days a week to produce the building blocks needed to make PEF. Avantium also has several new R&D programmes which are receiving significant national and European funding. “We’re always looking for funds and are eager to investigate the so-called Juncker funds that are being made available for innovative technologies, especially in renewables, in Europe,” says Van Aken.
A bright outlook
Avantium is the first company worldwide to make a 100% bio-based plastic which has superior properties to petroleum-based products. That superiority is critical to the company’s future because it means that Avantium is not just competing on price or its environmental credentials. “The recent drop in the oil price affects the pace of adoption of bio-based materials since it makes the petroleum-based products cheaper. But because PEF is a better product, lower oil prices won’t affect its longer term potential,” says Van Aken.
No longer true! OIL IS HIGH
“Avantium will continue to face challenges,” concedes Van Aken. “As the production of PEF is scaled up, it will become necessary to establish a stable local supply of raw materials of sufficient size, for example. Equally, when the commercial facility is in place, and we have shown that there are no risks created by scaling up production, we will begin licensing the product – we will not be able to meet demand. That change in business focus will necessitate new skillsets. At the same time, while we have robust patents in place, it would be naïve to think that chemical companies are not doing R&D in this area: we will face competition.”
Despite these challenges, Avantium is confident that it can deliver on its technical and economical promises and take its YXY technology from an R&D dream to a commercial reality. “Our scientific breakthrough means that Avantium will retain a leadership position in bio-based polymers: we have created something with blockbuster potential.”
$6.60 is where the stk should trade.
May 17 & may 19 a doublebottom was made @ $5.40
YTD breakdown from $7----> $5.40//
Financing the future of plastic
Avantium began as an international consortium of strategic, financial and university partners when it was spun out of Shell and has since been through multiple rounds of funding. In 2008, when Shell sold its stake, Avantium completed a €18 million private financing round, in which ING Corporate Investments, Aescap, Capricorn Cleantech Fund and Navitas Capital participated. In 2011, it raised €30 million to advance its YXY technology from Sofinnova, De Hoge Dennen and Aster Capital.
Most recently, in 2014 Avantium closed a financing round of €37 million from a strategic consortium comprised of packaging company ALPLA, The Coca-Cola Company, Danone, Hong Kong conglomerate Swire Pacific, and existing shareholders. “Attracting strategic investors showed that Avantium’s initial risk profile has been reduced and that commercial deployment is within reach,” notes Van Aken. Proceeds from the most recent funding will be used to complete the industrial validation of PEF and finalise the engineering and design of the first commercial scale plant, which will be located in Europe and is scheduled to begin operations in 2018.
“Further rounds of investment will be required to build and operate the facility,” explains Van Aken. “Once we shift to a period of earning income from selling products in the market and selling licenses to our YXY technology, an IPO could well be part of our financing strategies, as it would provide access to new sources of equity that could help to accelerate our growth ambitions.”
Throughout its history, Avantium has also benefited from public sector support. A credit loan from the Dutch government, which is repayable only if the project is financially successful, enabled it to build a pilot plant where a team of about 25 work 24 hours a day, seven days a week to produce the building blocks needed to make PEF. Avantium also has several new R&D programmes which are receiving significant national and European funding. “We’re always looking for funds and are eager to investigate the so-called Juncker funds that are being made available for innovative technologies, especially in renewables, in Europe,” says Van Aken.
A bright outlook
Avantium is the first company worldwide to make a 100% bio-based plastic which has superior properties to petroleum-based products. That superiority is critical to the company’s future because it means that Avantium is not just competing on price or its environmental credentials. “The recent drop in the oil price affects the pace of adoption of bio-based materials since it makes the petroleum-based products cheaper. But because PEF is a better product, lower oil prices won’t affect its longer term potential,” says Van Aken.
No longer true! OIL IS HIGH
“Avantium will continue to face challenges,” concedes Van Aken. “As the production of PEF is scaled up, it will become necessary to establish a stable local supply of raw materials of sufficient size, for example. Equally, when the commercial facility is in place, and we have shown that there are no risks created by scaling up production, we will begin licensing the product – we will not be able to meet demand. That change in business focus will necessitate new skillsets. At the same time, while we have robust patents in place, it would be naïve to think that chemical companies are not doing R&D in this area: we will face competition.”
Despite these challenges, Avantium is confident that it can deliver on its technical and economical promises and take its YXY technology from an R&D dream to a commercial reality. “Our scientific breakthrough means that Avantium will retain a leadership position in bio-based polymers: we have created something with blockbuster potential.”
