Letoon Holding Ltd has secured a £20 million investment from Nimbus Capital ahead of its IPO.
The London firm said the strategic agreement with Nimbus Capital will allow it to become established as a global leader in the recovery of high value added ingredients from vegetable waste and botanical products for use in the pharmaceutical, nutraceutical, cosmetic and food industries.
Under the agreement, Nimbus will provide LHL with a growth equity agreement of up to £20m for a 36-month term following a public listing of the LHL common stock. LHL will control the timing and maximum number of drawdowns under the agreement and has no minimum drawdown obligation.
Concurrent with a public listing of the company’s shares, LHL will issue warrants to Nimbus Capital to purchase up to 6% of its common stock.
“We are delighted to announce a truly groundbreaking partnership with Nimbus Capital. This is a pivotal moment as we reshape the landscape for the reclamation of high value added eco-friendly commodities from vegetable and botanical matrices using proven science techniques,” said LHL president and CEO Matteo Turi.
“With Nimbus by our side, we are now able to take huge strides towards a more sustainable, tech-driven circular economy where food waste, which would otherwise be consigned to the compost heap, can be processed for valuable, precious, and efficacious ingredients, with a global industrial demand.”
LHL’s mission is dedicated to the recovery of precious lycopene from tomato waste for use in the pharmaceutical and nutraceutical industry, as well as other natural compounds found in a variety of food waste and botanicals.
The validated process allows both a much higher yield and grade of recovery.