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A global green chemistry leader, Leaf Resources Ltd (ASX: LER) is focused on building a robust global business, centered on renewable carbon containing products. In its quest of removing petroleum from the products, the company has developed technology that can convert biomass from the plant waste into industrial sugars, reducing the need for petrochemicals. Through its renewably sourced and environmentally-friendly products, the company is addressing the needs of renewable packaging and food packaging markets.
Currently, the company is progressing on the path of establishing the first Malaysian biorefinery project using Leafâs proprietary GlycellTM technology. During 2019 March quarter, the company generated sufficient data and technical information to support the Front End Loading level 3 (FEL3 program), which will be used to support the final due diligence and project financing for the proposed biorefinery.
On 29th March 2019, the company announced that it has executed a Note Subscription Agreement with entities associated with Directors, Douglas Rathbone and Ken Richards for the issue of a total of 2,500 unsecured notes with a face value of $100 each, totaling $250,000. The proceeds from this will be used to fund the companyâs immediate needs for additional working capital.
At the end of 2019 March quarter, the company had cash of $173k and expected to secure additional funds in the near term. The company has taken measures to minimise outgoings in the interim period, and moreover, it has access to an additional $400k of funding through R&D financing.
The company is in discussions with the potential Malaysian investors who might invest in the company, which could provide a more beneficial position for Leaf Malaysia and its shareholders.
The company is currently focusing on the commercialisation of its proprietary GlycellTM technology. The company has laid a solid foundation for a biorefinery at Segamat, Johor in Malaysia to produce its proprietary Glycell⢠industrial sugars, while also introducing the LeafCOAT⢠product to address the needs of renewable packaging and food packaging markets, which are potentially very large markets.
In March 2019, the Australian Patent Office (IP Australia) granted Leaf patents, which will protect the core intellectual property associated with Leafâs GlycellTM biorefinery technology, providing exclusive commercial rights in Australia through to 2035.
The company is currently seeking corresponding patent applications in the other key territories, including Malaysia, the USA and Europe. Further, the company has additional patent applications in collaboration with Amalgamated Research Inc. for the application of simulated moving bed chromatography (SMB) processes in cellulosic biorefineries.
For the half-year ended 31 December 2018, the company reported an operating loss of $3.99 million as compared to the loss of $2.20 million, driven by the increased research and development costs in relation to the commencement of the integrated demonstration study in Delft.
At the time of writing, i.e., on 10 May 2019, AEST 01:00 PM, the stock of the company was trading at a price of $0.030, with a market capitalisation of ~$9.16 million.
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