Categorized | Business

Cyanotech secures $5.5M loan to support growth program


Cyanotech Corporation, a world leader in microalgae-based, high-value nutrition and health products, has completed a long-term loan agreement with Pacific Rim Bank in Honolulu providing for $5,500,000 in aggregate credit facilities.

The loan proceeds will be used to finance capital improvements, which include new equipment to be used in the processing of its natural astaxanthin and the addition of new administration and warehouse buildings at its Kona facility.

The new equipment includes the purchase of supercritical carbon dioxide extraction equipment for which Cyanotech has signed a purchase agreement with Uhde Corporation of America.

“The company is now focused on our own branded consumer products and the international bulk market. We have strengthened our sales, marketing and product fulfillment capabilities. With that underway, we are adding to our processing and production capabilities to meet the growth in demand, as well as to improve our service levels to current bulk and retail customers,” said President and CEO Brent Bailey.

“The extraction process is currently being performed for us by outside partners. Bringing this capability in house will make us a vertically integrated natural astaxanthin supplier and is expected to reduce processing time and lower costs,” Bailey said. “While these are long-term projects with components being built out over the next 18-24 months, they will significantly strengthen our operational foundation and competitive position.”

Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin Natural Astaxanthin and Hawaiian Spirulina Pacifica — all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands which promote health and well being.

Cyanotech’s Spirulina products offer complete nutrition, and augment energy and immune response. They are FDA-reviewed and accepted as Generally Recognized as Safe (GRAS) for use in food products.

BioAstin’s superior antioxidant activity and ability to support and maintain a natural anti-inflammatory response enhance skin, muscle and joint health.

All Cyanotech products are produced from microalgae grown at its 90-acre facility in Kona using patented and proprietary technology. Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 54 countries worldwide.

Cyanotech was the first microalgae company in the world to obtain quality management standards ISO 9001:2000 certification and is GMP-certified by the Natural Products Association.

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