Chitose Group raises JPY 7.3bn
CHITOSE BIO EVOLUTION, the leader of the global bioeconomy and the headquarters of CHITOSE Group, has announced the issuance of new shares of JPY 7.3 billion (equivalent to USD 49 million) through a third-party allotment.
In addition to the previously raised JPY 3.1 billion (equivalent to USD 21 million), the company has secured additional funding through a third-party allotment with underwriters including Sumitomo Mitsui Banking Corporation, Mizuho Bank, TOPPAN Holdings, NSK, JAFCO ASIA S-8 FUND and JAFCO ASIA S-8(A) FUND, Sumitomo Mitsui Trust Bank, and one other company. Furthermore, with an additional investment from Mers LineGroup, the newly raised amount reached JPY 4.2 billion (equivalent to USD 28 million), bringing the total funding in this round to JPY 7.3 billion (equivalent to USD 49 million), far exceeding the initial target of JPY 3 billion (equivalent to USD 20 million).
Fundraising Background and Future Outlook
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. The newly raised funds will be used to advance a fermentation production project that leverages 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.
In addition, 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.