Financing is in place and Algae Biosciences Corporation has made a public stock offering in order to raise funds to begin production at its plant near Adamana.
Algae Biosciences CEO Andrew Ayers was not able to offer much additional information on the financing prior to press time, noting that now that the company is publicly traded, he would like to obtain training before speaking further with The Tribune-News.
In a previous interview, Ayers explained that the company hoped to raise $10 million to resume operations and complete an expansion. Algae Biosciences had previously attempted to secure financing through an ARRA American Recovery and Reinvestment (ARRA) bond program, but could not meet strict deadlines imposed by the government and so pursued other options.
The Adamana facility had been in operation for a short time, but was closed in 2007. Ayers noted that some operations resumed the first week of January, but work is still being done to prepare the facility now that funding is available.
According to Ayers, the company will employ 10 to 12 people for the first few months, as well as a number of contractors, and that number will increase once production is in full swing.
Speaking to the Navajo County Board of Supervisors last July, Ayers explained that Algae Biosciences uses salty water from the Coconino Aquifer to grow marine algae. Nutrients are then extracted from the algae and sold to pharmaceutical companies. He told the board that the company has two purchase contracts for its products and is currently negotiating a third.
“The first two products we will be producing will be EPA and DHA,” he remarked.
The company uses reclaimed carbon dioxide as part of the process, which also creates a bio-fuel as a byproduct. At this point, Ayers noted, the company is using all of the bio-fuel produced, but in the future it will sell any excess bio-fuel. He also told the board that the company hopes to expand quickly and create new jobs in the area.
“Within five years we will be producing about 150 direct jobs, and that will go to and support hundreds of others,” Ayers said. “This is just the first stage in the process.”
At the time, Deputy County Attorney Lance Payette told the Board of Supervisors that he had reviewed extensive documents provided by the company as part of the bond application process, and that he feels comfortable that the company’s plans “are based in reality.”
“We did ask that they provide a lot more information on the company in confidentiality,” Payette said. “It was a lot more comprehensive than has been provided by other companies I could mention, and I certainly feel very comfortable with it.”
