Biobase Sweden closes second round of capitalization
Biobase Sweden AB, a company focused on bio-based high performance functional fluids for the construction, manufacturing, process, and lubricant industries based in Bandhagen, Sweden, has closed the second of three planned capitalization rounds of SEK4 million (USD399,597). The round was oversubscribed, the company said.
CEO Erik Josephsson and Per Wiklund, Biobase Sweden founder, thanked the investors “for their confidence in us and our business plan.”
The company’s products are biodegradable and non-toxic and can contribute to less climate impact of many industrial activities. Currently, it has two patent portfolios. LOWTIX is a unique liquid technology, based on renewable raw materials, with extremely good low temperature properties especially suited for heat transfer applications. A heat transfer product called RECO (Renewable Coolant) based on the LOWTIX technology is under development.
“We expect the product to be very useful as a bio-based and non-toxic alternative to ethylene glycol/water-based products especially for use in sensitive environments and the food industry,” according to the company website. A Swedish patent application was filed in 2020 which was followed up by an international application in 2021.
REMICS Technology offers possibilities for new technical solutions in both established application areas and in areas new to the traditional lubricant industry.. The nano-sized structures which spontaneously form from the components of REMICS are not described in the scientific and technical literature, “but are probably similar to the structures of cell membranes in living organisms. These microemulsions show physical behavior which is completely new and unique.” Potential applications include lubricants, corrosion protection, rubber/leather surface treatment, waterproofing in construction, sustainable packaging solutions and wood treatment. A Swedish patent application was filed in 2020, which was followed up by an international application in 2021.
Biobase Sweden AB has an ambitious plan to grow the business both regionally and globally. Sales in Sweden are growing, and the company plans to introduce its products to the European market within the year.
Meanwhile, the company plans to enter the North American market in late 2022 and the Asian market in 2023.
Biobase Sweden AB has an evaluation of SEK25 million (USD2.5 million) pre-money. Pre-money valuation is the value of a company before it goes public or receives other investments such as external funding or financing.