Jan. 9, 2018
Inocucor Corporation announced the $9.5 million USD ($12.1M CAD) second close of its Series B financing round. Funds raised to date in its Series B round now total $38.5 million USD ($50.9 million CAD).
The round was led by Pontifax AgTech, a leading growth capital investor in the global food and agriculture sector.
Other participants in the second Series B round include existing investors Cycle Capital Management (Montreal), Desjardins Innovatech (Montreal) and Cairn Investments (Denver). Inocucor's first Series B equity financing of $29 million USD ($38.8 million CAD) in March 2017 was led by TPG ART with participation from existing investors.
Funds will enable Inocucor to accelerate its commercialization activities, through the increased production and marketing of its first- and second-generation biostimulant products, Synergro® and Synergro Free™. They will also advance development of a new suite of biocontrol products that combat economically devastating diseases in high-value crops such as strawberries, tomatoes and potatoes.
“Biologicals are currently the single fastest-growing area within AgTech, with microbial discovery platforms that produce more sustainable, superior alternatives to traditional agrochemicals poised to gain far greater adoption among growers,” said Ben Belldegrun, Managing Partner and Co-Founder of Pontifax AgTech. “Inocucor is distinguished from its peers by its talented management team, growing portfolio of commercialized products and established distribution channels for these proven technologies. Our investment in the company, combined with the access we can provide to leading growers and strategic players, will support Inocucor’s further growth and the expansion of its product portfolio to a wider range of crop varieties.”
Inocucor uses a patented fermentation process to combine multi-strains of bacteria, yeasts and fungi into powerful biostimulants that naturally improve crop yields, shorten growing periods and create healthier, more resilient soils for farmers and greenhouse growers. A suite of microbial biocontrol products that target devastating diseases in potatoes, tomatoes and strawberries is also under development.
"We've come a long way in a few short years, with two products in use in the field, a signature line of biocontrol products under development and hundreds of field trials underway throughout the Americas," said Inocucor's President and CEO Donald R. Marvin. "Our business strategy and plan are guided by our vision for a Second Green Revolution for agriculture, one that uses earth-friendly farming products to improve crop yields, revitalize soils and improve water quality."
Early next spring, Inocucor will occupy its new 30,000-square-foot U.S. headquarters and commercialization office currently under construction in Centennial, Colo. Its Montreal-based, R&D-focused Technical Center of Excellence is currently being enlarged from 10,000 to 20,000 square feet to house expanded product development and manufacturing operations. The company employs about 40 people in Montreal and the U.S., and anticipates adding another 25 to 30 high-level scientific and managerial professionals over the next year.