AlgiSys Raising $45 million to Address Rising Market Demand for Food and Wellness Products Rich in Omega Ingredients.

First to Offer Highest Microalgae Content of Omega-3 EPA.

CLEVELAND–(BUSINESS WIRE)–AlgiSys BioSciences, Inc. announced today that Peakstone Securities, LLC, the Axial-ranked #1 lower middle market U.S. investment bank, has been retained to raise $45 million in Series B capital to fund its initial commercial plans being driven by global customer demand for EPA omega-3 fish oil substitutes.

AlgiSys is an ESG biotechnology company that can sustainably and economically produce natural, non-GMO, fish-free ingredients rich in omega-3 fatty acids and aquatic plant-based protein, all suitable for a wide spectrum of B2B products.

The Company is targeting high-growth, addressable global markets collectively sized in the billions (USD): aquaculture, animal health and pet care, human nutrition and supplements, pharmaceuticals and regenerative health therapies, and cosmeceuticals.

AlgiSys is the only company able to deliver the highest and purest concentrations of EPA (eicosapetraenoic acid), the important omega-3 found in fish oil, directly from algae through a highly scalable heterotrophic fermentation process. EPA health benefits are well documented for human and companion animals, and EPA health-improvement capabilities have been studied in aquatic and land animals.

The Company has global patents and proprietary technology as part of its intellectual property portfolio. Its heterotrophic fermentation process is an environmentally clean production system with no pathogens or contaminating elements diminishing the quality, quantity and purity of the produced ingredients.

AlgiSys’s microalgae is a complete 3-in-1 nutritional solution, producing omega-3, protein and EPA that partially converts into DHA (docosahexaenoic acid), both of which are found in fish oil. The Company has proprietary algae strains that also produce plant-based protein that can be concentrated as high as 80-90 percent.

Omega fatty acids and their beneficial components – particularly EPA and DHA – are not found or produced in the human body but are vital and required for human, animal, and fish health. The consumption of oily fish is the primary dietary source of EPA and DHA, which studies have shown are important for healthy heart, joint, and brain functions. The problem is that marine life rich in omegas are being relentlessly depleted from the oceans at an irreplaceable rate due to overfishing and climate change. At the same time, healthier lifestyle trends are propelling demand for omega-rich foods. Meeting these challenges, AlgiSys will supply fish-free, omega-rich ingredients for human nutrition and pet and animal health.

The Company has already received more than three years of product demand from potential customers. AlgiSys expects its all-natural, pure and fully traceable ingredients to be commercially available within 10 to 12 months. It is currently evaluating offers from strategic manufacturing partners in the U.S. and internationally.

“Forty percent of the world’s population is fish-dependent for protein,” said Peter Colella, chief executive officer of AlgiSys. “We’re ready to help solve this global challenge. AlgiSys has what we believe is the best scientifically tested and proven platform available today to produce EPA omega-3 rich ingredients for multiple industries. For example, aquatic farmers soon will be able to economically feed their fish with EPA rich microalgae ingredients instead of with unsustainable fish by-products.”

Dr. Charles Roe, AlgiSys’s chief technology officer, said that a study published this year by The Lancet medical journal about the impact of omega-3 fatty acids on cardiovascular health underscores the significance of AlgiSys’s capability to produce EPA from algae. “The study confirms EPA’s prominent role in reducing or preventing cardiovascular disease,” Roe said. “EPA has multiple health benefits and is vital for healthy heart function. Extensive research and studies published in other medical journals have shown that EPA’s anti-inflammatory properties can reduce cardiovascular risk factors such as high blood pressure and triglyceride levels, inflammation, and arterial plaque.”

The Series B funds will be used for commercialization, strategic acquisitions, and to hire key executives. The management and operations team currently includes entrepreneurs successful at monetizing innovative technologies, veteran manufacturing and financial executives, scientists, and engineers.

AlgiSys has secured an international patents portfolio and additional patents are being filed.

The Company is committed to environmental principles consistent with the United Nations’ global marine sustainability goals. During the next seven years, AlgiSys aims to produce over 170,000 tons of algae, which translates to approximately 13 percent of the captured fish market on an annual basis. Current studies have shown one ton of EPA oil replaces 60 tons of caught fish (forage) to feed farmed fish. This will result in AlgiSys meeting low carbon footprint standards through significant decreases in CO₂ emissions and a reduction in marine energy expended to capture forage fish for fish oil and fishmeal.

About AlgiSys

AlgiSys BioSciences, Inc. is a disruptive biotechnology company with patented microalgae-based omega-3 and protein solutions for multiple high-growth markets. Learn more about AlgiSys at www.algisys.com.

About Peakstone

Peakstone Securities, LLC is a FINRA-registered broker-dealer and has raised growth capital for many early-stage companies. For additional information, visit www.peakstone.com.

Contacts

AlgiSys Contact: Roger Frank

Executive Vice President

[email protected]
+1.917.327.7215

Peakstone Contact: Richard Goff

Managing Director

[email protected]
+1.734.994.1003