Lodders helps steer investment into SymbioTex

Lodders is pleased to have acted on behalf of a leading Midlands angel investor and the management team in the acquisition of assets and formation of Symbio Technologies Limited.

The company is revolutionising the plastic industry with its patented, compostable, bio-based material derived from red seaweed. This investment will help accelerate the wider adoption of the next generation biomaterials.

Providing specialist M&A expertise

Leanne Lawrence and Graham Spalding in the Business Services Group at Lodders acted for the lead investor and management in the formation of a Special Purpose Vehicle (SPV) to facilitate the injection of new funding to support the acquisition of the intellectual property (IP), stock and machinery.  The new company, Symbio Technologies Limited (SymbioTex), is managed by co-founders Olivia Simpson and Mattia Parati, who have developed the leading biomaterial from Red seaweed which has applications in a wide range of industries including medical, food, retail and personal care sectors. 

The investment has enabled SymbioTex to launch operations from its manufacturing facility in Wolverhampton, marking an important new chapter for the home-compostable biomaterials sector as well as ensuring continuity and growth.

The lead investor turned to Lodders for its specialist M&A expertise and ability to execute quickly given the time sensitivity of the transaction. The deal was completed in just three months despite the numerous complexities involved including multiparty negotiations on taking over the lease for the facility, transferring the IP, software, hardware and machinery and novating commercial contracts to the newly formed entity.

Revolutionising the plastic market

Since the investment, SymbioTex has signed a number of exclusive supply agreements including with Abingdon Health plc (ABDX) who, using Symbiotex’s material, has launched several leading-edge diagnostic products. The lateral flow pregnancy test using Symbiotex’s materials has already won a national award for sustainability in health care.  

As a result of the growing number enquiries about the Company’s products and capabilities it has already had to hire a new member of staff, an apprentice and an intern and is using part of the investment to accelerate further product development.

Commenting on the deal, Leanne Lawrence said: “We were delighted to help steer investment into this fascinating area of technology that is set to revolutionise the plastic market with home bio-compostable products. From its manufacturing base in Wolverhampton, SymbioTex is now well positioned to accelerate customer adoption and focus on scaling up its tech. We’re looking forward to following the company’s journey on its drive to eliminate single use plastics.”

The Symbiotex team added: “We have been impressed by the practical and clear advice that Leanne and the team provided at every stage of the transaction. They have really helped us understand and streamline the process, saving time and money, which is important in a new business venture.” 

About SymbioTex

SymbioTex has created a unique patented and TUV-certified home compostable, sustainable material that is being used to revolutionise the production of plastic products and packaging and is applicable to a wide range of sectors including medical devices, food and beverage, personal care, horticulture, pet care, retail and sports that are currently made from single-use plastic. The material utilises unique patent processes and formulations and sustainably cultivated seaweed to produce the 100% plastic free alternatives. Importantly, it can be used in existing plastic extrusion or injection moulding production facilities with little or no adaption and runs at lower temperatures and pressures than the plastic processes, which also saves energy compared to traditional plastic production based methods.

Why seaweed?

• No pesticides or special care required
• No harm to biodiversity or habitats
• No harmful by-products
• CO2 sequestration
• Opportunities for local communities who rely on seaweed cultivation
• Supply chains are sustainably certified and audited
• Seaweed contributes to 70% of the world’s oxygen production

For more information, visit: https://www.symbio-tex.com/

Lodders’ Business Services Group has a strong reputation for getting the deal done, and providing pragmatic legal advice on a range of business issues. Get in touch today to find out how we can support you with your corporate and commercial matters.