Chitose Bio Evolution, a biotech company based in Singapore, has announced that it has allotted JPY 1 billion ($6.2 million) in new shares to Sumitomo Mitsui Banking Corporation (SMBC) through a third party.
In a recent statement, Chitose Bio Evolution stated that SMBC has long supported the bank’s commercial expansion of CHITOSE Group.
Additionally, since September 2023, SMBC has bolstered its backing by becoming a member of MATSURI, the initiative to develop a microalgae-based sector to displace the petroleum industry.
The statement claims that the money raised will go toward increasing the production capacity of microorganisms and cells and developing a variety of bioproducts.
Furthermore, the funds will fortify the organization in anticipation of its 2027 NASDAQ initial public offering (IPO).
It is mentioned that in March 2023, the New Energy and Industrial Technology Development Organization (NEDO) designated Chitose Laboratory Corp. (CHITOSE) as the implementing agency for a research and development (R&D) project with a JPY 58 billion ($364.3 million) budget.
As a cooperating institution, SMBC is taking part in this project.
Chitose Bio Evolution strengthened its financial base last year by raising a total of JPY 3.1 billion ($19.4 million) through the third-party allotment of new shares, in order to support CHITOSE’s business growth.
The bioeconomy is predicted to reach a $30 trillion market size by 2032, and CHITOSE Group will remain at the forefront thanks to this investment from Sumitomo Mitsui Banking Corporation.
Far exceeding its initial target, Chitose Bio Evolution has raised a total of JPY 4.1 billion ($25.7 million) including the capital increase in September 2023, thanks to growing expectations for its decarbonization efforts and our activities to simultaneously promote sustainable manufacturing.
The company declared that it will keep up its fundraising efforts with the goal of raising over JPY 15 billion ($94.2 million) by 2025.
“In order to create a new industry called bioeconomy, we need not only the world’s cutting-edge technological capabilities, that CHITOSE Group has cultivated since its founding, but also financial capabilities.
“This investment has been made utilizing SMBC Group’s ‘Social Value Creation Investment Fund’,” said Tomohiro Fujita, Founder and Chief Executive Officer of CHITOSE Group.
“We are honored to have been chosen as one of the partners by the SMBC Group, which is advancing initiatives for creating social value through its support for building the bioeconomy industry，
We have also received words of expectation from the SMBC Group’s executive members, which further strengthens our resolve,” he added.
