Locus Fermentation Solutions Announces $117 Million Financing

Locus produces biological alternatives to chemicals that advance decarbonization and ESG goals
Latest financing brings the company’s total raise to $250 million

SOLON, Ohio (April 5, 2023) – Locus Fermentation Solutions (Locus FS), a green tech company that produces biological alternatives to chemicals that advance decarbonization goals, has secured $117 million in IP-insurance backed debt financing arranged by Jefferies (NYSE: JEF)—bringing its total raise to over $250 million. The financing was driven by the value of Locus Fermentation Solutions’ intellectual property (IP) and library of more than 1,300 biomanufacturing technology patent filings.

Markel, Liberty Specialty Markets, CNA, Aspen and Fidelis all participated in a collateral insurance policy based on Locus FS’ IP, which was valued by global professional services firm Aon’s (NYSE: AON) industry-leading valuation capabilities.

Founded in 2013, Locus FS transforms biologicals made from 100% renewable agricultural resources into alternatives to chemicals that advance ESG goals, with better performance and cost metrics. The cleaner, more sustainable biological ingredients improve profitability and decarbonize the agriculture, energy, mining, industrial, CPG and other sectors.

Locus Fermentation Andrew Lefkowitz Biological Quote “The immediate need for solutions that reduce the global carbon footprint has never been more urgent; but production limitations, high costs and inconsistent performance have hindered implementation of biological alternatives,” said Andrew (Andy) Lefkowitz, chairman and CEO of Locus Fermentation Solutions. “Through scientific breakthroughs backed by intellectual property, strategic funding and corporate partnerships, we’re accelerating the pivotal role customized biologicals can play in advancing the decarbonization and ESG goals for our clients.”

The company’s success has led to investments and agreements with a variety of other strategic partners, including Dow and Anew Climate. Support and funding from these partnerships is accelerating commercial adoption of the company’s solutions, Lefkowitz said.

“Innovation is a critical ingredient for the growth economy, but intellectual property is its foundation,” said Lewis Lee, CEO of Aon’s Intellectual Property Solutions. “Aon is working with IP-rich companies like Locus Fermentation Solutions, particularly in the green tech space, to help leverage the potential value of their intangible assets to accelerate their ability to bring these important solutions to market.”

Locus Fermentation Andrew Lefkowitz Biological Quote Locus FS has become an international leader in biobased solutions that are non-GMO, palm-free and low-carbon. The company’s biomanufacturing approach involves isolating and fermenting unique microorganisms and the biosurfactants that they produce.

The resulting biologicals are tailored for use across industries that are reliant on chemicals. They are designed to advance ESG goals including:

Reducing greenhouse gas emissions
Improving food security
Accelerating clean-label product formulations
Slowing palm deforestation
Driving the clean energy transition

Locus FS is actively advancing 11 of the 17 United Nations’ Sustainable Development goals, and helping clients meet their net-zero commitments across sectors. With eleven offices in five states, the company employs more than 160 people. For more information, visit LocusFS.com.

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About Locus Fermentation Solutions

Locus Fermentation Solutions (Locus FS) uses patented biomanufacturing technology to deliver biological alternatives to chemicals that accelerate the profitable meeting of decarbonization goals for clients. These solutions are tailored to address global ESG challenges—including climate change, food security, product sustainability, water contamination, oil and mineral demand, and more. Once field proven, the biobased ingredients are commercialized through industry-specific operating divisions.

Locus Fermentation Solutions’ divisions include Locus Agriculture, which helps farmers grow more food and minimize greenhouse emissions; Locus Animal Nutrition, which reduces methane emissions while boosting productivity of livestock; Locus Bio-Energy, which works with oil & gas operators to sustainably increase production of low-carbon fossil fuels; Locus Mining, which accelerates the clean-energy transition by boosting recovery of critical metals; Locus Ingredients, which helps clients replace chemical and palm-based surfactants in industrial and product formulations; and Locus Consumer Brands, which develops clean-label CPG products. Visit LocusFS.com for more information.

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