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Cleantech Building Materials: Financing Partner appointed to further Increase China Accoya® Production Capacity
20 June 2022
CLEANTECH BUILDING MATERIALS PLC, NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
TICKER: CBM
Cleantech Building Materials plc
Financing Partner appointed to further Increase China Accoya® Production Capacity
This press release constitutes inside information that Cleantech Building Materials plc
is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014
Cleantech Building Materials plc (“CBM”, or the “Company” or the “Group”) is pleased to announce the engagement of DelMorgan Group LLC (“DelMorgan”), an internationally recognized investment banking firm, to support financing the Group’s intention to increase its planned China Accoya® Wood factory production capacity from 40,000 m3 to 240,000 m3 per annum. CBM’s average selling price during 2022 has been €1,966.85 euros per m3.
The proposed additional financing is expected to be in the form of equity and take place in 2022. The amount of total financing required is still to be determined. In addition to allowing for the expansion of the factory, the financing will also be used to construct an advanced industrial system to fully recycle the output chemicals from the Accoya® manufacturing process, significantly decreasing the factory’s chemical purchases and increasing profit margins. This advanced industrial recycling system has the added benefit of further enhancing the Group’s high standards of sustainability and protection of the environment. Every cubic meter of Accoya® Wood produced sequesters approximately one metric ton of carbon dioxide.
In March 2021 CBM’s Hong Kong based subsidiary, Diamond Wood China Ltd (“DWC”), entered into a joint venture, Jiangsu Dragon Wood, in which DWC has a 51% interest. Under the joint venture agreement, CBM will provide 25% of the financing, while the joint venture partners, Nantong Acetic Acid Company and Bank of Jiangsu, will provide the remaining 75%, in a combination of local debt and equity financing.
About DelMorgan
Headquartered in Santa Monica, California, DelMorgan www.delmorganco.comis an internationally recognized investment bank and financial advisor. With over three decades of experience and over $300 billion in successfully completed transactions, the professionals at DelMorgan provide world-class financial advice and assistance to companies, institutions, governments and individuals around the world.
About Accoya® Wood
Accoya® Wood, is a high-performance solid wood, which is both sustainable and non-toxic to the environment. It is produced through the enhancement of sustainably-grown Radiata Pine into the ideal material for windows, doors, shutters, decking, cladding and general construction.
Architects and manufacturers have traditionally chosen Accoya® Wood foremost for its guaranteed durability of over 50 years, its dimensional stability, and its excellent insulation qualities. However, in recent times there is an increased awareness that the materials with which Accoya® competes (such as aluminum, steel, uPVC, tropical hardwoods) are intensely resource depleting and/or highly carbon-polluting. Accoya® Wood ‘locks in’ carbon for the 50+ years of its lifespan. For every cubic meter of Accoya® produced, 944kg of CO2 is sequestered, compared with 88kg of CO2 emitted. For this reason, Accoya® is the only structural building material to have received Cradle to Cradle™ Gold certification. CBM is constructing the first Accoya® Wood factory in China to support this shift to sustainable building materials.
Accoya® branded wooden products are enjoying widespread acceptance in the European and US markets, as well as in China and Asia. The CBM Group already has multiple Asian offtake agreements in place, and the Group has begun to receive enquiries for China-produced Accoya® Wood from around the world. The Nantong, China site at the Rudong Industrial Park is potentially capable of supporting up to 480,000 m3 of annual production.
Paul Richards, Chairman of CBM, said: “CBM is at the forefront of environmentally friendly businesses with huge growth capacity, and as such is becoming more and more attractive to investors with Environmental Social Governance criteria. DelMorgan is an excellent fit for the Company as we look to build on this opportunity.”
Francis König, Managing Director at DelMorgan, said: “We are extremely excited to work with CBM to help them identify and source the capital to rapidly expand the Accoya® production capacity in China. The Company’s focus on sustainability, tied with its ambitious long-term growth potential, is exactly the type of company that DelMorgan’s experience can help and support to achieve its goals. We are looking forward to partnering with the Company as it grows towards its very attractive profitability potential in the coming years.”
Greg Lee, Chairman Diamond Wood China, said: “The urbanisation of China and the Asian region continues to drive the demand for high performance building materials derived from sustainable, carbon-neutral sources. The Chinese government, the Bank of Jiangsu and our local joint venture partner are all aligned in our objective of constructing the largest Accoya® wood factory in the world.”
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 www.cbm-plc.com
Further Enquiries:
Cleantech Building Materials plc | info@cbm-plc.com |
Keswick Global AG (Certified Adviser) | info@keswickglobal.com |
IFC Advisory Limited (Financial PR) | +44 20 3934 6630 |
DelMorgan Group LLC | inquiries@delmorganco.com |
