AlgiSys Raising $45M for Omega-3 Substitutes

  Algae Europe December 2022
AlgiSys BioSciences

AlgiSys’ proprietary microalgae are heterotrophic producers of EPA, i.e. able to grow quickly in the dark using fermentation technology.

AlgiSys BioSciences, Inc., headquartered in Cleveland, Ohio, has announced that Peakstone Securities, LLC investment bank, has been retained to raise $45 million in Series B capital for commercialization, strategic acquisitions, and to hire key executives. This commercial expansion is being driven by global customer demand for EPA omega-3 fish oil substitutes.

An environmental, social and governance (ESG) biotechnology company, AlgiSys sustainably and economically produces natural, non-GMO, fish-free ingredients rich in omega-3 fatty acids and aquatic plant-based protein, all suitable for a wide spectrum of B2B products. The Company is targeting high-growth global markets including aquaculture, animal health and pet care, human nutrition and supplements, pharmaceuticals and regenerative health therapies, and cosmeceuticals.

AlgiSys’s microalgae is a complete 3-in-1 nutritional solution, producing omega-3, protein and EPA that partially converts into DHA (docosahexaenoic acid), both of which are found in fish oil. The company has proprietary algae strains that also produce plant-based protein that can be concentrated as high as 80-90 percent. They have more than three years of product demand from potential customers and expect ingredients to be commercially available within 10 to 12 months. AlgiSys is currently evaluating offers from strategic manufacturing partners in the U.S. and internationally.

“Forty percent of the world’s population is fish-dependent for protein,” said Peter Colella, chief executive officer of AlgiSys. “We’re ready to help solve this global challenge. AlgiSys has what we believe is the best scientifically tested and proven platform available today to produce EPA omega-3 rich ingredients for multiple industries. For example, aquatic farmers soon will be able to economically feed their fish with EPA rich microalgae ingredients instead of with unsustainable fish by-products.”

Dr. Charles Roe, AlgiSys’s chief technology officer, said that a study published this year by The Lancet medical journal about the impact of omega-3 fatty acids on cardiovascular health underscores the significance of AlgiSys’s capability to produce EPA from algae. “The study confirms EPA’s prominent role in reducing or preventing cardiovascular disease,” Dr. Roe said. “EPA has multiple health benefits and is vital for healthy heart function. Extensive research and studies published in other medical journals have shown that EPA’s anti-inflammatory properties can reduce cardiovascular risk factors such as high blood pressure and triglyceride levels, inflammation, and arterial plaque.”

During the next seven years, AlgiSys intends to produce over 170,000 tons of algae, which translates to approximately 13 percent of the captured fish market on an annual basis. Current studies have shown one ton of EPA oil replaces 60 tons of caught fish (forage) to feed farmed fish. This will result in AlgiSys meeting low carbon footprint standards through significant decreases in CO₂ emissions and a reduction in marine energy expended to capture forage fish for fish oil and fish meal.

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