Company Will Be Changing Name to TerraVia™
to Reflect Focus on Food, Nutrition and Specialty
Ingredients
- TerraVia’s algae-based platform is
poised to transform our food system by bringing together better
nutrition and great taste, along with economic and environmental
sustainability.
- As the pioneer in algae technology
and innovation, 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.
- Leading investors and entrepreneurs
in food, nutrition, and innovation invest approximately $28
million.
- Jonathan Wolfson, CEO and
co-founder, appointed Chairman of the Board of Directors. TerraVia
to begin a search for new CEO that aligns with the Company’s
refined focus in food. Following appointment of a new CEO, Wolfson
will remain full time with the Company as Executive
Chairman.
- Irene Chang Britt, Former President
of Pepperidge Farm and senior executive at companies and brands
including Campbell Soup Company, Kraft, and Nabisco, joins
TerraVia’s Board of Directors.
- With its refined focus on food,
nutrition, and specialty ingredients, the Company will pursue
strategic alternatives for its industrial businesses to maximize
value.
Solazyme (NASDAQ:SZYM) announced that it is focusing the Company
exclusively on food, nutrition and specialty ingredients,
harnessing the power of its transformational algae innovation
platform. 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. With
these foundational elements in place, the Company is positioned to
create value and impact in the rapidly growing plant-based food,
nutrition and specialty ingredients sectors. Solazyme will be
renamed “TerraVia™” to reflect the refined focus and journey to
improve the lives of people and the planet.
“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,” said Jonathan Wolfson, the Company’s
co-founder and CEO. “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. Over more than 13 years we have invested in
developing a unique understanding and expertise around algae. Today
the pieces are in place for the Company to fulfill its mission and
create substantial value for customers and shareholders.”
TerraVia PORTFOLIO
TerraVia’s proven portfolio of ingredients and products
include:
- Specialty Food
Ingredients, including the AlgaVia® Whole Algae ingredients
(lipid rich powder and protein) and AlgaWise™ Algae Oils (cooking
and high stability oils). Each of these products has obtained key
regulatory clearances and have been incorporated into products by
established food companies such as Hormel and Utz, as well as by
leading edge, plant-based food companies such as Enjoy Life, So
Delicious, Soylent and Follow Your Heart during the past six to
nine months.
- Consumer Food
Products, where the Company will leverage its unique
ingredients to incubate select consumer brands, including Thrive®
Culinary Algae Oil.
- Animal Nutrition
Ingredients, a new area for the Company, where initial
products and partnerships will be announced soon.
- Specialty
Personal Care Ingredients, including AlgaPur Oils, which are
marketed and sold alongside food ingredients and where the Company
has major customers including Unilever.
“There are opportunities for our algae-based ingredients across
every aisle of the grocery store, driven by consumer demand for
clean labels and an increasing focus on plant-based foods with
great taste,” said Mark Brooks, SVP and General Manager of Food
Ingredients at Solazyme. “We are enhancing a new generation of
foods that deliver better flavor and nutrition, including healthier
fats and enhanced protein, fiber and micronutrients. In addition to
products incorporating our ingredients on store shelves today, we
are currently in active development projects with major CPG
companies for new products such as salad dressings and gluten-free
bakery products that are healthier and offer the taste and texture
that consumers demand.”
Prior to joining Solazyme, Brooks was the Global Business
Director of Truvia®, where he led the business to over $100 million
in global retail sales.
STRATEGIC FINANCING
The Company 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. The investor group includes:
- Glenhill Capital (active consumer
investor including seed investor in Boulder Brands)
- VMG Partners (premier consumer private
equity fund: KIND, Pretzel Crisp, Pirate’s Booty, Natural
Balance)
- PowerPlant Ventures (founders of Zico
Coconut Water and the Veggie Grill)
- Charles Chang, founder and former CEO
of Vega (Lyra Growth Partners)
- ARTIS Ventures (investors in food and
technology, including Juicero, ChefsFeed and Modern Meadow)
- Simon Equities (investors in food and
consumer products, including Plum Organic, Method, Shinola)
- Jack Davis (retired CEO of Ventura
Foods, the largest maker of vegetable oil-based products in the
U.S.)
- Keith Belling (founder and former CEO
of Popchips)
“I was fortunate to be at the forefront of the amazing growth in
the coconut category,” said Zico Founder, Mark Rampolla, “and I am
excited to have the chance to be a part of the next generation in
food and nutrition that TerraVia and its suite of algae ingredients
represents.”
MANAGEMENT AND BOARD APPOINTMENTS
Co-founder and longtime CEO, Jonathan S. Wolfson has notified
the Board of Directors that as part of this transition he will
shift his focus from daily operations to strategy and special
projects including those with a consumer focus. At his request, a
search for a new CEO will begin immediately. Mr. Wolfson has been
appointed Chairman of the Board and will remain as CEO while the
search is underway. He will assume the full-time role of Executive
Chairman effective upon the placement of the new CEO. Jerry Fiddler
will remain on the board and has assumed the role of lead
independent director.
Mr. Wolfson said, “We have worked hard for more than a decade
building a transformational algae-based food and specialty
ingredients platform. Over the last six months, the key elements
that we have been working on have fallen into place, ranging from
regulatory clearances and manufacturing capability to validation of
our key ingredients in cutting-edge consumer brands. As we focus
the Company on food, nutrition and specialty ingredients, it is an
ideal time to bring in a leader who has the industry experience and
skills to enable TerraVia to deliver on a truly transformational
opportunity. I am excited to be continuing on in a full-time
capacity as Executive Chairman once the new CEO is in place.
“I also want to thank Jerry for his 13 years of tireless service
and fantastic vision as Chairman,” Wolfson concluded.
Jerry Fiddler noted, “Jonathan leads with creativity, passion,
drive and skill. I’m proud of what he has accomplished, and happy
that he is reaffirming his commitment to the Company as Executive
Chairman once the new CEO is in place. I am very optimistic about
the future of TerraVia -- the products are wonderful, they’re in
production now, and they’re market-ready in a strong and receptive
industry. I look forward to continuing to serve as lead independent
director going forward.”
The Company also announced the strengthening of foods expertise
on its Board of Directors with the addition of seasoned food
industry executive, Irene Chang Britt. Britt is a past President of
Pepperidge Farm; SVP, Chief Strategy Officer, Campbell’s Soup
Company; General Manager, Kraft Foods and VP at Nabisco.
“Companies across the food industry are increasingly focused on
delivering truly innovative products that transform the nutrition
profile of the foods we all love without sacrificing their great
taste,” said Britt. “TerraVia’s ingredients platform is
well-positioned to help the food industry get there today, and I
look forward to adding my expertise and voice to the board.”
SOLAZYME INDUSTRIALS
Over its history Solazyme has invested in, and developed
products, technology and market opportunities in industrial markets
including fuels, industrial oils, and the oilfield/Encapso™
business. Moving forward, these initiatives will be grouped
together as “Solazyme Industrials” and will not be part of
TerraVia’s refined focus. Solazyme believes these businesses have
tremendous opportunity to develop into large and profitable
entities, while improving the lives of people and the planet. The
Company will be pursuing strategic alternatives over the next 12-18
months to unlock the value created. Solazyme’s objective is to
identify partners who have the operational capabilities needed to
realize the potential of those businesses.
MOVING FORWARD AS TerraVia
“We are moving forward with a strong business foundation and
clear vision,” said Tyler Painter, Chief Financial and Operating
Officer. “We have invested significant time and capital in the
development of our innovation platform and large-scale
manufacturing capability. We enjoy long-standing commitments from
partners, led by Bunge and Unilever, who have helped bring our
vision to life. Importantly, we have also learned significant
lessons in scale-up and commercialization, helping to de-risk the
inherent challenges in bringing disruptive products to market.
These strengths combined with our refined focus, a proven suite of
products and the expanded market knowledge we gain with our new
investors and board member, position us well to execute on our
opportunities in food, nutrition and specialty ingredients.”
About TerraVia
Solazyme (to be renamed TerraVia™), is a next generation food,
nutrition and specialty ingredients company that harnesses the
power of algae, the mother of all plants and earth’s original
superfood. With a portfolio of breakthrough ingredients and
manufacturing, the Company is well positioned to help meet the
growing need of consumer packaged goods and established and
emerging food manufacturers to improve the nutritional profile of
foods without sacrificing taste, and to develop select consumer
brands. The Company also manufacturers a range of specialty
personal care ingredients for key strategic partners. Headquartered
in South San Francisco, the Company’s mission is to create products
that are truly better for people and better for the planet. For
additional information, please visit TerraVia’s website at
www.terravia.com.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve
risks and uncertainties concerning: the ability of algae-based
foods to transform the food system; the attributes of algae-based
foods, including as to economic and environmental sustainability;
the future employment status of Jonathan Wolfson with Solazyme; its
ability to find strategic alternatives for its industrials business
and the timing and value of those alternatives; the ability of its
business to bring value to customers and shareholders; the
attributes of Solazyme’s next CEO; its ability to close its
strategic financing; its commercialization and production plans;
the ramping up of facilities; meeting commercialization and
technology targets; successful product trials and market acceptance
and adoption of its products; and Solazyme's ability to maintain
its relationships with its partners. When used in this press
release, the words "will", "expects", "intends" and other similar
expressions and any other statements that are not historical facts
are intended to identify those assertions as forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any such statement may be influenced by a
variety of factors, many of which are beyond the control
of Solazyme, that could cause actual outcomes and results to
be materially different from those projected, described, expressed
or implied in this press release due to a number of risks and
uncertainties. Potential risks and uncertainties include, among
others: Solazyme's limited operating history; its limited history
in commercializing products; implementation risk in deploying new
technologies; its limited experience in constructing, ramping up
and operating commercial manufacturing facilities; its ability to
successfully develop and commercialize products; its ability to
sell its products at a profit; delays related to construction,
start-up and ramp-up of production facilities; its ability to
manage costs; its ability to enter into and maintain strategic
collaborations; successful product trials by its customers and
market acceptance and adoption of its products by end-users; its
ability to obtain requisite regulatory approvals; and its access,
on favorable terms, to any required financing. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what impact they will have on the results of operations
or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme,
Inc. files with the Securities and Exchange Commission,
including its Quarterly Reports on Form 10-Q and Annual Report on
Form 10-K, as updated from time to time, for a discussion of these
and other risks. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. Solazyme is not under any duty to update
any of the information in this press release.
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