Cathay Industrial Biotech Completes US$52 Million Series B Financing

Cathay Industrial Biotech Ltd. (CIB)
2006-12-04 16:58 1157

SHANGHAI, China, Dec. 4 /Xinhua-PRNewswire/ -- Cathay Industrial Biotech

Ltd. (CIB) today announced the closing of its US$52 million Series B

financing. Together with the US$26 million Series A financing in May 2006,

CIB has raised a total of US$78 million in 2006.

Series B Investors include Goldman Sachs, Gramineae Holdings Company

Limited, GM Investment Company Limited, and New Horizon Evergreen Investment

Co, Ltd. Series A investors collectively also participated in the Series B


The funds raised in the financings will be partially used to improve

Cathay’s long chain dibasic acids (DC) production technology by replacing

the starting raw material from the traditional alkane (petroleum product) to

renewable bio-materials. This conversion will reduce Cathay’s dependence on

the petroleum product and allow Cathay’s and Cathay’s customer’s products

to carry the “green and renewable” label. Part of the funds raised in the

financings will be used to start a new “green energy” and renewable bio-

material program, which converts starch and fiber into a unique type of bio-

fuel with better burn energy than ethanol.

“We are very pleased with the successful closing of our two financings

in 2006. The involvement of these leading international investors provides

Cathay access to the international capital markets to accommodate its fast

growing capital needs,” said Dr. Xiucai Liu, Cathay’s founder, Chairman and

CEO. “From now on, we will accelerate our speed of growth. We have full

confidence to become a world-class industrial biotech company.”

About Cathay Industrial Biotech

Cathay Industrial Biotech (CIB) is a leading international industrial

biotechnology company headquartered in Shanghai Pudong Zhangjiang High-Tech

Zone. Cathay is currently the largest producer of bio-processed DC in the

world. Through Cathay’s biotech process, the DC products are tailored to

many applications such as new types of high quality nylons, special

fragrance, adhesives, superior anti-corrosive chemicals, and high-grade

powder coating for cars. These products are widely used in automobiles,

electronics, cosmetics, and many other industries.

Source: Cathay Industrial Biotech Ltd. (CIB)