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Jefferies Arranges $117MM Financing for Locus Fermentation Solutions

April 07, 2023, 07:38 AM
Filed Under: Biologics
Related: Jefferies

Locus Fermentation Solutions (Locus FS), a green tech company that produces biological alternatives to chemicals that advance decarbonization goals, has secured $117 million in IP-insurance backed debt financing arranged by Jefferies, bringing its total raise to over $250 million. The financing was driven by the value of Locus Fermentation Solutions’ intellectual property (IP) and library of more than 1,300 biomanufacturing technology patent filings.

Markel, Liberty Specialty Markets, CNA, Aspen and Fidelis all participated in a collateral insurance policy based on Locus FS’ IP, which was valued by global professional services firm Aon’s industry-leading valuation capabilities.

Founded in 2013, Locus FS transforms biologicals made from 100% renewable agricultural resources into alternatives to chemicals that advance ESG goals, with better performance and cost metrics. The cleaner, more sustainable biological ingredients improve profitability and decarbonize the agriculture, energy, mining, industrial, CPG and other sectors.

“The immediate need for solutions that reduce the global carbon footprint has never been more urgent; but production limitations, high costs and inconsistent performance have hindered implementation of biological alternatives,” said Andrew (Andy) Lefkowitz, chairman and CEO of Locus Fermentation Solutions. “Through scientific breakthroughs backed by intellectual property, strategic funding and corporate partnerships, we’re accelerating the pivotal role customized biologicals can play in advancing the decarbonization and ESG goals for our clients.”

The company’s success has led to investments and agreements with a variety of other strategic partners, including Dow and Anew Climate. Support and funding from these partnerships is accelerating commercial adoption of the company’s solutions, Lefkowitz said.

“Innovation is a critical ingredient for the growth economy, but intellectual property is its foundation,” said Lewis Lee, CEO of Aon’s Intellectual Property Solutions. “Aon is working with IP-rich companies like Locus Fermentation Solutions, particularly in the green tech space, to help leverage the potential value of their intangible assets to accelerate their ability to bring these important solutions to market.”

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