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Contacts:
Donald J. Glidewell, VP and Chief Financial Officer, (530) 750-0150, ext. 114
Pamela G. Marrone, Ph.D., Founder and President, (530) 750-0150, ext. 115
Mike Miille, Ph.D., CEO, (530) 750-0150, ext. 129
AgraQuest Receives $ 14.35 Million Financing
Proceeds for Business Expansion and Launch of New Biopesticide Products
DAVIS, Calif. (June 7, 2005) – AgraQuest, Inc., today announced the completion of a $14.35 million private round of financing. The deal was co-led by Otter Capital LLC and new investors Texas Pacific Group (TPG) and Halcyon Capital. William E. McGlashan, Jr. of TPG and Payman Pouladdej of Halcyon have joined the Board of Directors.
“AgraQuest has many exciting opportunities to continue our global sales expansion and to launch new products in our pipeline,” said Dr. Mike Miille, AgraQuest’s CEO. “The sizeable resources and experience of TPG will help create significant value for our customers and investors.” “We are also grateful for the continued support of our existing investors who have helped build the foundation of a company that is now poised for rapid growth,” added Pam Marrone, the company’s founder.
The new funds will enable AgraQuest to expand its current products into additional crops and countries, commercialize new products in its pipeline, and expand its manufacturing plant. The company will also use funds for continued development and launch of a biofumigant product as an alternative to methyl bromide, which is being phased out because it disrupts the ozone layer.
The company recently launched Sonata for 14-day mildew control in fruit, vine and vegetable crops, and Ballad, for prevention of Asian soybean rust in organic soybeans. In addition, AgraQuest recently expanded the potential use of its flagship product Serenade Biofungicide, from 8 crops to over 100 crops including citrus, peaches and strawberries, and expanded its retail product line to home gardeners. In 2005, AgraQuest sold Serenade for the first time in France and Italy, two of the largest fungicide markets in the world and expects approvals in other European countries and South Korea later this year.
Several other existing investors participated in the financing, including Switzerland-based SAM Sustainability Private Equity LP, Sustainable Performance Group (Unlisted) N.V., and Swiss Re Investors, Berndt Trusts, JSS Management, Vivo Ventures and Boldcap Ventures.
About AgraQuest
AgraQuest is a biotechnology company focused on discovering, developing, manufacturing and marketing effective, safe and environmentally friendly natural pest management products for agricultural, institutional and home markets The company sells Serenade® and Rhapsody® Biofungicides and recently launched Sonata® and Ballad® for mildews and rusts on fruit, vegetables and soybeans. Pending at the EPA are Arabesque™ Biofumigant and Virtuoso™ Bioinsecticide. In 2003, AgraQuest won the prestigious Presidential Green Chemistry Award for the discovery and commercialization of Serenade Biofungicide. In 2004, AgraQuest received a Red Herring Top 100 Private Company Award and the World Technology Award for the Environment.
About TPG Ventures
TPG Ventures was founded in 2001 with $500M of capital and a team of experts to catalyze the creation of new businesses. Their investment focus is on early stage and acceleration round opportunities in information technology and biotechnology — with an emerging practice in consumer companies. TPG ventures is affiliated with Texas Pacific Group, a private equity investment firm with significant investments in many important brand-name companies including Burger King, Seagate, J.Crew, Bally, and Ducati. Together with its affiliated partnerships, Texas Pacific Group has an aggregate committed capital of more than $15.0 billion, with more than $3.0 billion invested in technology and telecommunications worldwide.
Certain matters contained in the press release concerning AgraQuest, Inc. are forward-looking statements which are subject to known and unknown risks and uncertainties which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Such risks and uncertainties include, among others, the receipt of EPA and other regulatory approval of the Company’s products, the success of the Company’s products in field trials and the timely development, manufacture and marketing and acceptance of the Company’s products in the marketplace.