Chitose Bio Evolution, a Singapore-based biotech firm and the headquarters of Chitose Group, has announced the issuance of new shares of JPY 7.3 billion ($49 million) through a third-party allotment for expansion.
The firm said in a statement on Monday that in addition to the previously raised JPY 3.1 billion ($21 million), the firm has secured additional funding through a third-party allotment with underwriters including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., TOPPAN Holdings Inc., NSK Ltd., JAFCO ASIA S-8 FUND L.P. and JAFCO ASIA S-8(A) FUND L.P., Sumitomo Mitsui Trust Bank, Limited, and one other company.
Furthermore, with an additional investment from Mers Line Pte. Ltd. Group, the newly raised amount reached JPY 4.2 billion ($28 million), bringing the total funding in this round to JPY 7.3 billion (equivalent to $49 million), far exceeding the initial target of JPY 3 billion (equivalent to $20 million).
The newly raised funds will be used to advance a fermentation production project that leverages artificial intelligence (AI) technology and to promote a novel cell line development project, established through the company’s proprietary technology, that will significantly enhance global biopharmaceutical manufacturing.
It is noted that Chitose Group aims to be listed on the NASDAQ by fiscal year 2027.
To strengthen its capital prior to the initial public offering (IPO), the company plans to raise significant funds beginning in fiscal 2025, which will also support the development of a 100-hectare microalgae production facility.
“In order to create a new industry called bioeconomy, we need not only the technological capabilities that Chitose Group has cultivated since its founding, but also support from various industries and financial institutions,
“With the funding secured this time, we will further accelerate the practical application of microalgae production and the implementation of circular solutions, further expanding our efforts to realize a sustainable society,” said Tomohiro Fujita, Founder and Chief Executive Officer of Chitose Group.
“Chitose Group remains committed to taking on new challenges alongside our partners, striving to create lasting value that will contribute to a prosperous future beyond the next millennium,” he added.
Envisioning a future where humanity lives in abundance for the next thousand years, Chitose Group is leading Matsuri, a project which aims to establish a new industry based on photosynthesis to replace the petroleum industry.
To promote the widespread adoption of microalgae-derived products across various sectors—including fuel, food, cosmetics, chemicals, and animal feed — Chitose collaborates with players from various sectors, regardless of their field or focus.
As societal expectations for decarbonization and sustainable manufacturing continue to rise, Chitose Group is driving various initiatives, including Matsuri, to expand the bioeconomy.
In this Matsuri project, Chitose Group is expanding large-scale microalgae biomass production while developing new applications.
The company completed a 0.1-hectare facility in November 2018 and began operating a 5-hectare facility, Chitose Carbon Capture Central (C4), in April 2023.
Currently, preparations are underway to open a 100-hectare facility, with plans to expand to 2,000 hectares by 2030 and 10 million hectares by 2050.
Building on the world-class technological capabilities cultivated since its founding, Chitose Group is entering a new phase of development, aiming to establish a solid foundation for a sustainable future.
Chitose Group is a family of biotechnology companies leading the global bioeconomy.
The firm pursues the possibilities of biotechnology through technological and business development collaborating with its business partners all over the world.