Solazyme to Change Name to TerraVia to Reflect Focus on Food, Nutrition and Specialty Ingredients
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14 Mar 2016 --- Solazyme have announced plans to change their name to TerraVia, focusing exclusively on food, nutrition and specialty ingredients, harnessing the power of its transformational algae innovation platform. TerraVia’s algae-based platform is poised to transform the food system by bringing together nutrition and taste, along with economic and environmental sustainability.
The company also announced that it has entered into a definitive purchase agreement for a strategic financing round of approximately $28 million in newly issued, no-coupon convertible preferred shares with a conversion price of $2.00 per common share, which represents an approximately 25% premium over the 15-day trading average of Solazyme’s common stock. The investment was funded by an outstanding and accomplished group of leading investors and entrepreneurs in food, nutrition and innovation.
FoodIngredientsFirst spoke with Jonathan Wolfson, Executive Chairman and CEO, TerraVia: “There were some milestones which confirmed our impact our food business can bring to the industry, and drove us to the decision to change our name,” he says. “The completion of commercial-scale manufacturing facilities, regulatory approvals on all of our food ingredients, and the early adoption from established and innovative food manufacturers across the industry came to life and has been validated across 10 aisles of the food market.”
The company now has commercial scale food grade manufacturing in operation, breakthrough ingredients with regulatory clearance, and validation by established and cutting-edge consumer brands. TerraVia is positioned to capitalize on healthier eating and lifestyle trends and the accelerating demand for plant-based foods and nutrition.
“Algae is poised to play a growing role in the world’s food supply,” says Wolfson, “Our customers are responding to increasing consumer demand for better nutrition, cleaner labels, sustainable sources of protein, traceable ingredients, and more plant based, gluten- and allergen-free choices - all without compromising taste, texture and affordability.”
The evolution leverages over a decade of R&D and product development on an innovative suite of algae-based food, nutrition and specialty ingredients, as well as extensive investment in building manufacturing facilities, obtaining regulatory approvals, and commercializing initial products.
“Our products deliver more protein and healthy fats per available unit of land, water and carbon than any other food source,” claims Wolfson.
“By unlocking the power of algae, the mother of all plants and earth’s original superfood, we are bringing much-needed innovation in food and nutrition,” he says, “Our new generation of breakthrough ingredients and foods delivers on nutrition, flavor and texture all with an unparalleled sustainability profile, and these products are already beginning to penetrate a market that is demanding healthier alternatives. We have invested over 13 years in developing a unique understanding and expertise around algae.”
Wolfson adds: “Today the pieces are in place for the company to fulfill its mission and create substantial value for customers and shareholders.”
"We have been working actively with key customers for the past two years and have a robust pipeline of projects and products underway with our customers. We are engaged with both leading food companies and innovators in sustainable foods. They see our AlgaVia Whole Algae ingredients and our AlgaWise food oils as innovation drivers within their organizations. Existing customers include: Mondelez, WhiteWave, Hormel, Follow Your Heart, and Safeway and we are in over 10 aisles of the supermarket today. We look forward to sharing new developments in the future."
Solazyme and Roquette dissolved their joint venture Solazyme Roquette Nutritionals in mid-2013, to go in separate ways.
On December 21, 2015, the United States District Court for the District of Delaware handed down a major decision in the proceedings between Solazyme, Inc., and Roquette Frères, S.A. Specifically, the court confirmed in its entirety, and without alteration, the Arbitration Panel Award of February 19, 2015. In addition, the court denied Roquette's motion for an order to vacate the Award, and denied Roquette's motions for summary judgment as to its declaratory judgment actions.
In February 2015, the Arbitration panel found that Roquette has attempted to market products and patent intellectual property based on the intellectual property and products that Solazyme contributed to the parties' joint venture (Solazyme Roquette Nutritionals LLC), specifically (i) a high lipid (whole) algal flour, and (ii) a high protein (whole) algal powder. Further, prior to working with Solazyme, Roquette did not possess any products that were in any way similar to either product.
The United States District Court's confirmation of the Arbitration Award confirms that:
• Essentially all of the intellectual property from the Solazyme Roquette Nutritionals joint venture, including all patent applications and all "know-how" related to the products, is assigned solely to Solazyme,
• Roquette was told to assign to Solazyme all of Roquette's patent applications filed on or after November 3, 2010 related to microalgae foods, microalgae ingredients, microalgae nutritionals and all methods related to making and using them, and
• Roquette was told to pay Solazyme $2.3 million dollars to cover all of Solazyme's fees for the arbitration.
by Elizabeth Kenward
