Evolva nets CHF12 million funding with target to break even by 2023

09 Dec 2020 --- Evolva has secured CHF12 million (US$13.3 million) in funding from Nice & Green, an independent company specializing in corporate financing, also based in Switzerland. It is the maximum principal amount that the health ingredients supplier can draw over a period of 12 months. 

Evolva says that it is “proactively creating financial flexibility” amid the limited market visibility during the COVID-19 crisis.

In November, the biotech company updated its 2020 financial outlook in light of the pandemic. At the time, it anticipated that its EBITDA loss for the full-year would come in around CHF16 to 17 million (US$17.7 to 18.8 million).

Aiding growth in years to come
According to Oliver Walker, CEO of Evolva, the newly secured funding will support future growth on the path to cash break-even by 2023. 

“With continued market share gains across product lines and the registration of nootkatone as a novel active ingredient for pest control applications in the US, we continue to focus on strengthening our manufacturing and supply chain,” he adds.

Nootkatone is a compound found in organisms like grapefruit. Evolva is currently working on aiding customers in the launches of the first end-user products. 

It is also set to launch another new ingredient in 2021, currently known only as EVE-X157/Z. It will have applications in health ingredients, flavor and fragrances.Evolva can choose to repay each convertible note as an ordinary share of the company or in cash. 

Building on an existing agreement
This new agreement from Nice & Green is an amendment to an existing deal for the issuance and subscription of convertible notes. Including the remaining tranches from the first investment, Evolva can now draw up to CHF17 million (US$18.8 million). 

The convertible notes facility will be used to finance investments in connection with the expansion of Evolva’s business and may be drawn in tranches depending on the operational requirements and the opportunities for investments.

The principal amount of each convertible note is, at Evolva’s discretion, either repayable by way of conversion into ordinary shares of the company or in cash. The conversion price is 95 percent of the lowest daily volume weighted average price for a share on the SIX Swiss Exchange during the six trading days immediately preceding the conversion.

In August, Evolva’s half-year results also detailed headwinds related to COVID-19. 

While the company had a record order intake of CHF6.2 million (US$6.8 million) driven by the Health Ingredients, only CHF3.8 million (US$4.2 million) could be realized due to delays at contract manufacturing organizations. 

The pandemic also created stagnating customer demand in its Flavors and Fragrances business. 

Edited by Katherine Durrell

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