|
Latest
News
October 27, 2006
Dyadic International, Inc. (AMEX: DIL), a biotechnology company, today announced that it has signed a three-year research and development (R&D) agreement and a stock purchase agreement with Abengoa Bioenergy R&D, Inc. (ABRD), an Abengoa Bioenergy Company focusing on research and development. Under the terms of the purchase agreement, Abengoa Bioenergy has agreed to invest $10 million in Dyadic, for which it will be issued 2,136,752 shares of Dyadic Common Stock at $4.68 per share (based on the closing sales price on October 25, 2006, as reported on the American Stock Exchange). The closing of the sale of the common shares is subject to approval of the listing of the shares by the American Stock Exchange and other customary closing conditions. After the closing, under certain circumstances, additional securities may be issuable to ABRD. Cowen and Company, LLC, acted as an advisor to Dyadic.
Dyadic will use the proceeds from this private sale to fund its R&D obligations under the R&D agreement, which has as its objective the development of a cost-effective enzyme production system for commercial application in Abengoa Bioenergy's bioethanol (cellulosic ethanol) production process. The R&D agreement, which does not become effective until the private sale closes, calls upon Dyadic to use its proprietary technologies to develop one or more enzyme mixture manufacturing systems customized to ABRD's proprietary biomass substrates. The R&D agreement contemplates that Dyadic will perform both foundational research of general application to the cellulosic ethanol field and specific applications research for the achievement of the goals of ABRD's program. Under the terms of the R&D agreement, if Dyadic successfully develops one or more enzyme manufacturing systems for Abengoa Bioenergy, Dyadic may be entitled to receive license fees, technology transfer fees and royalties on ethanol sales. Other financial terms were not disclosed.
"We recognized that Dyadic's enzyme technology, especially in the field of cellulosic ethanol, is state-of-the-art," said Gerson Santos-Leon, R&D Director of Abengoa Bioenergy. "Abengoa Bioenergy is looking forward to working with Dyadic in the development of large-scale enzyme production systems and manufacturing processes for use in the production of abundant low cost fermentable sugars from biomass, with initial focus on cellulosic ethanol production."
|
Other
Info
Dyadic International (125 employees) is a biotechnology company conducting research and development activities for the discovery, development, and manufacture of products and technologies for the bioenergy, industrial enzyme and pharmaceutical industries. In the bioenergy business, Dyadic is engaged in the research and development of production strains, enzyme mixes and related processes and technologies to produce fermentable sugars from agricultural residues and energy crops.
Dyadic's enzyme business sells enzymes and other biological products for industrial and commercial applications, while its BioPharma business includes hosts for therapeutic protein production for the biopharmaceutical industry.
Dyadic spent over a decade of R&D in the design and development of enzymes for the increasingly efficient extraction of sugars from biomass. In 2006, a partnership was announced with Abengoa. |
