MVC Capital Announces Investment in Biovation Holdings Inc.
PURCHASE, N.Y.--(BUSINESS WIRE)-- MVC Capital, Inc. (MVC), a publicly traded business development company that makes private debt and equity investments, today announced that it will invest up to $3.05 million in Biovation Holdings Inc., a manufacturer and marketer of environmentally friendly, organic and sustainable laminate materials and composites.
Under the terms of the transaction, MVC has funded a $1.5 million note and, upon the realization of certain manufacturing, sales, and capital expenditure milestones, will fund a $1.55 million preferred equity investment.
Based in Mankato, MN, Biovation produces organic material made primarily of corn and soybean co-products that, through a proprietary process, can be extruded into flat sheets or rolls, which can be printed upon and textured. Biovations green products are manufactured without formaldehyde or other hazardous and harmful items, which are currently found in nearly 100% of the laminates produced today. Biovation will focus initially on the decorative laminates market under its Biosurf brand name. Long-term, the proprietary Biosurf product is anticipated to be used in many industries including decorative lighting, military applications, transportation, print media, and electronics.
We are pleased to partner with Biovation, an entrepreneurial and innovative company with revolutionary green laminate products and proprietary technologies applicable to a large number of end markets, said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc.
Michael Riebel, Chief Technology Officer at Biovation Holdings Inc., said: With the significant financial and operational resources MVC brings to Biovation, we believe we can better achieve our near and long-term objectives. MVC has already demonstrated their hands-on investment approach and we look forward to working closely with them as we enter the next phase of our growth.
We believe Biovation is well positioned to take advantage of numerous opportunities that exist in the highly-fragmented decorative laminates industry, said Peter Seidenberg, Chief Financial Officer of MVC Capital, Inc. We look forward to working closely with Biovations talented team and helping grow their business and deliver additional products to the marketplace.
About MVC Capital, Inc.
MVC Capital is a Business Development Company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For MVC's investor relations, please call 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
About Biovation Holdings Inc.
Biovation Holdings, Inc. is a manufacturer and marketer of environmentally-friendly, organic and sustainable materials and composites for use in the production of laminates and green products under the brand name Biosurf. More information about Biovation can be found at www.biosurfsolutions.com.
The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.
For MVC Capital, Inc.
Nathaniel Garnick, 212-687-8080
Source: MVC Capital, Inc.Copyright Business Wire 2012