SHANGHAI, China, Dec. 4 /Xinhua-PRNewswire/ -- Cathay Industrial Biotech Ltd. (CIB) today announced the closing of its US$52 million Series B financing. Together with the US$26 million Series A financing in May 2006, CIB has raised a total of US$78 million in 2006.
Series B Investors include Goldman Sachs, Gramineae Holdings Company Limited, GM Investment Company Limited, and New Horizon Evergreen Investment Co, Ltd. Series A investors collectively also participated in the Series B financing.
The funds raised in the financings will be partially used to improve Cathay's long chain dibasic acids (DC) production technology by replacing the starting raw material from the traditional alkane (petroleum product) to renewable bio-materials. This conversion will reduce Cathay's dependence on the petroleum product and allow Cathay's and Cathay's customer's products to carry the ''green and renewable'' label. Part of the funds raised in the financings will be used to start a new ''green energy'' and renewable bio- material program, which converts starch and fiber into a unique type of bio- fuel with better burn energy than ethanol.
''We are very pleased with the successful closing of our two financings in 2006. The involvement of these leading international investors provides Cathay access to the international capital markets to accommodate its fast growing capital needs,'' said Dr. Xiucai Liu, Cathay's founder, Chairman and CEO. ''From now on, we will accelerate our speed of growth. We have full confidence to become a world-class industrial biotech company."
About Cathay Industrial Biotech
Cathay Industrial Biotech (CIB) is a leading international industrial biotechnology company headquartered in Shanghai Pudong Zhangjiang High-Tech Zone. Cathay is currently the largest producer of bio-processed DC in the world. Through Cathay's biotech process, the DC products are tailored to many applications such as new types of high quality nylons, special fragrance, adhesives, superior anti-corrosive chemicals, and high-grade powder coating for cars. These products are widely used in automobiles, electronics, cosmetics, and many other industries.
For more information, please contact:
Li Zhu, PhD.
VP Research and CSO,
Tel: +86-21-5080-1916 x230
Cathay Industrial Biotech Ltd. (CIB)
CONTACT: Li Zhu, PhD., VP Research and CSO of Cathay Biotechnology,+86-21-5080-1916 x230, or firstname.lastname@example.org