Houston-based Encina Development Group, a producer of circular chemicals from postuse plastics, has announced it has secured $55 million of equity capital. This included participation from institutional investors IMM Investment Global Ltd., Hong Kong, and SW Recycle Fund through a $32 million private placement.
According to a news release, a representative of IMM Global will join the company’s board of directors as a result of its investment.
“We are excited to partner with Encina to further drive the company’s growth plan, and we are aligned with their goals to help foster a circular economy on a global basis,” says Youngjoon Lee, CEO and managing partner of IMM Global. “Encina has a world-class management team, operating technology and a scalable platform that is well-positioned to expand at multiple locations in the coming years.”
Encina says it will use the capital, in addition to $20 million in earlier secured equity financing, to move forward with the commercialization of its plastic-scrap-to-aromatics recycling business. The company says it will use the funding to build its first recycling plant in Pennsylvania.
Encina's products are marketed to global customers that adhere to ISCC+ certification standards and that are seeking to manufacture end products requiring circular content in their products. Current projects include planned facilities in the United States and projects in Asia and South America. Each of the facilities is expected to process about 450,000 tons of postuse plastic material annually.
“We are committed to deploying our technology to capture waste streams such as plastic scrap, which would have been harmful to the environment through possible incineration, land filled or ocean waste, which can now be reclaimed and used as feedstock to produce circular chemicals to help foster better environmental outcomes for everyone on a global basis,” says David Schwedel, founder and executive director for Encina.
Morgan Stanley and Stephens acted as private placement agents with respect to the private placement transaction.
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