Solegear closes financing, begins trading on TSX Venture Exchange

By Solegear Bioplastic Technologies Inc. | March 31, 2015

Solegear Bioplastic Technologies Inc., a Vancouver, British Columbia-based company that develops, produces and distributes high-performance bioplastics, is pleased to announce it commences trading on the TSX Venture Exchange at market open March 31, under the symbol SGB.

In conjunction with the listing, Solegear completed a $4.2 million financing round that will continue to support the company’s growing sales and marketing, and product development and delivery activities.

“This is an important day for Solegear’s customers, partners, shareholders and employees. It recognizes the dedication that the entire team has put in to making Solegear a leading bioplastics company, focused on capturing the potential of the half a trillion dollar global plastics market,” said Toby Reid, CEO of Solegear Bioplastic Technologies. “We are certainly excited for what we have achieved to date, both technically and commercially, but we are much more enthusiastic about the opportunities that lie ahead of us, and the significant expansion that we are aiming for as a result.”

Over the last few months, Solegear has secured several partnerships to enhance its ability to further commercialize its unique bioplastics formulations to customers in the US market, including: R-pac International, a global supplier of branded packaging for retailers and designers; Thermoform Engineered Quality, an industry-leader in the retail and medical packaging space; and Ex-Tech Plastics, a leading Illinois-based plastics and bioplastics extruder.

Solegear’s proprietary formulations are composed of two families of biobased plastics, Polysole and Traverse, made from annually renewable plant-based sources using green chemistry. Polysole, a bio-based, recyclable and compostable plastic is an award-winning material made for thermoformed and injection molded rigid consumer packaging applications. Solegear’s Traverse is a biobased and recyclable plastic that is designed for very demanding applications in the rigid consumer packaging and durable goods markets. These markets combined represent a $35 billion total addressable opportunity for Solegear in North America alone.

In addition, Solegear has retained the services of investor relations firm Kin Communications Inc. Kin is one of Canada’s leading full-service investor relations firms, with a proven track record of generating interest in their clients, building an active shareholder base, and solidifying communications that differentiates clients from their peers.

Kin will be paid $120,000 plus GST for an initial term of 12 months, and will be granted an option to purchase 500,000 common shares of the company, exercisable at 30 cents per share. The option will vest at a rate of 25 percent per quarter from the date of the grant and will be exercisable for a period of 5 years. The agreement and the grant of options are subject to board approval.  In addition to the options, the company has been advised that, Kin and its principals own 580,000 common shares and 290,000 warrants of the company.