MVC Capital, Inc. (NYSE: MVC), a publicly traded business development company that makes private debt and equity investments, today announced that it will invest up to $3.05 million in Biovation Holdings Inc., a manufacturer and marketer of environmentally friendly, organic and sustainable laminate materials and composites.
Under the terms of the transaction, MVC has funded a $1.5 million note and, upon the realization of certain manufacturing, sales, and capital expenditure milestones, will fund a $1.55 million preferred equity investment.
Based in Mankato, MN, Biovation produces organic material made primarily of corn and soybean co-products that, through a proprietary process, can be extruded into flat sheets or rolls, which can be printed upon and textured. Biovation’s green products are manufactured without formaldehyde or other hazardous and harmful items, which are currently found in nearly 100% of the laminates produced today. Biovation will focus initially on the decorative laminates market under its Biosurf brand name. Long-term, the proprietary Biosurf product is anticipated to be used in many industries including decorative lighting, military applications, transportation, print media, and electronics.
“We are pleased to partner with Biovation, an entrepreneurial and innovative company with revolutionary green laminate products and proprietary technologies applicable to a large number of end markets,” said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc.
Michael Riebel, Chief Technology Officer at Biovation Holdings Inc., said: “With the significant financial and operational resources MVC brings to Biovation, we believe we can better achieve our near and long-term objectives. MVC has already demonstrated their hands-on investment approach and we look forward to working closely with them as we enter the next phase of our growth.”
“We believe Biovation is well positioned to take advantage of numerous opportunities that exist in the highly-fragmented decorative laminates industry,” said Peter Seidenberg, Chief Financial Officer of MVC Capital, Inc. “We look forward to working closely with Biovation’s talented team and helping grow their business and deliver additional products to the marketplace.”