SunOpta Seeks Financing

It wants a minority partner for its biomass unit.
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SunOpta (STKL) - Get Report said it seeks to raise $30 million in a private placement of stock in its SunOpta BioProcess Group.

Toronto-based SunOpta said it believes this is the time to seek a minority investment partner for its BioProcess Group due to increasing interest it is seeing in cellulosic ethanol and its BioProcess technology, which SunOpta believes makes the production of cellulosic ethanol commercially possible.

The proceeds of the financing will be used to invest in cellulosic ethanol production and to continue development of expanded process applications utilizing the group's technology and expertise in providing integrated bioprocess solutions. The decision to proceed with this equity financing will be dependant upon the ultimate valuation, satisfactory due diligence and the transfer of the BioProcess Group into a wholly-owned subsidiary of SunOpta.