CARBIOS announces the filing of its “Document de Base” with the French Autorité des Marchés Financiers (the “AMF”) for proposed Initial Public Offering on NYSE Alternext in Paris *

Carbios, a green chemistry company specializing in the development of breakthrough technologies in the recovery of plastic waste and the production of bio-polymers, announces the filing of its “Document de Base” with the AMF under number I.13-050 dated  November 21^st 2013, as part of its proposed IPO on NYSE Alternext in Paris *.

“Our ambition is to develop new programmed self-degradable plastics; transform plastic into high value raw material so it can act as a substitute for petroleum; and regenerate new plastics from existing ones”, said Jean-Claude Lumaret, CEO of Carbios. “100 million tons of recyclable plastic waste in the world; that is a windfall of $100 billion and represent a significant reservoir of untapped renewable resources. Their value is at the heart of the technologies currently being developed by Carbios. The company addresses the recovery and recycling of plastic waste in order to limit their environmental impact and promote an industrially viable and circular economic model. In Europe alone, 25 million tons of plastic waste are produced every year [1[1]] of which only 25% are recycled. We are working on biological solutions aimed at recovering end-of-life plastics, particularly through a better recycling of plastic waste. We are also focusing on the creation of on-demand biodegradable plastics and the development of competitive biopolymers through innovative use of raw materials and plastic waste. We are at the heart of the governmental priorities, as outlined by the Lauvergeon report”, added Jean-Claude Lumaret.

Our ambition: to become a key player of a several billion euros market. 

The plastic world’s green revolution is underway…

Carbios development strategy is based on a clear business model to create industrial value targeting attractive markets, developing innovative and competitive bioprocesses and licensing them out to industrial partners worldwide. These key players will ensure the operating and marketing phases. Carbios is backed up by Truffle Capital represented by Philippe Pouletty.  Truffle Capital will invest significantly in the IPO. Carbios innovations are protected worldwide.

With a unique technological and industrial know-how, the result of 10 years of research, Carbios has developed a unique platform of bioprocesses and industrial solutions and has implemented its strategy in a major program: Thanaplast. This 5-year project  – spear-headed by Carbios with a value of 22 million euros over 5 years, including 15 million in Carbios’ treasury –  brings together 60 researchers, as well as renowned partners (Limagrain, Barbier, Deinove, INRA, CNRS, Université de Poitiers). It is supported by BpiFrance (9.6 million, including 6.8 million for Carbios). Carbios has successfully overcome Thanaplast’s first key step and has gained major results, a world premiere in three applications areas: bio-recycling, biodegradation and the production of bio-polymers.

Carbios’ three priority axes of development are:

Programmed auto-degradation of plastics. The creation of a new generation of plastics that can self-degrade at the end of their life, by enzymes inclusion. Carbios will market products with controllable biodegradation, to ensure the required lifetime, depending on the intended use. In this context, coupling sustainability and biodegradability are one of Carbios’ major challenges, as these new plastics will provide a significant competitive advantage over currently marketed biodegradable plastics. This should allow Carbios to capture a significant share of the relevant markets. The target market is estimated about 35 billion euros (plastic bags, mulching film, rigid packaging …) and Carbios targets its first licenses in 2016.

Biological recycling of plastic waste: giving a new life to plastics. A depolymerization / repolymerization process, allowing to obtain polymers of identical quality to those obtained directly from petroleum or from biomass. Current recycling does not adequately meet the market’s needs, both in terms of volumes and valuation. The recycling processes developed by Carbios should present a conspicuous competitive advantage over conventional recycling techniques. Thus, while it is impossible to find a polymer of equivalent quality to the original one through current recycling methods, the processes developed by Carbios will allow an identical re-use of equivalent quality to the original polymer. The target market is estimated 15 billion euros (recycling of PET and PLA …) and Carbios targets its first licenses in 2016.

Production of biopolymers or petroleum-free plastics production. Carbios is working at the development of an innovative process in the production of high-potential biopolymer for plastic processing, called PLA (Poly-Lactic Acid). This completely biological process is a break from traditional technologies, and will allow a more efficient and less expensive biopolymer production from agricultural waste materials that are today poorly exploited. These biological processes may also be coupled with the depolymerization/repolymerization recycling process developed by the company. The market is estimated €2.4 billion in 2025 (PLA production…) and Carbios targets its first licenses in 2017.

The Document de base de Carbios –  registered on November 21st 2013 with number I.13-050  is available free of charge upon request from the Carbios company, Biopôle Clermont-Limagne 63360 Saint-Beuzire, also on the AMF’s (Financial Markets Authority) website (www.amf-france.org ) and on Carbios company’s website (www.carbios.oo ).

Risk Factors – Public attention is drawn to the “Risk Factors” entry in the Document de Base registered with the AMF (Financial Markets Authority). These risk factors are detailed in chapter 4 of the Document de Base.

* Subject to the approval of the supervisory authorities and depending on market conditions

[1] Source April 2011 European Commission DG – Plastic waste in the environment 4 Holding