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Frontier IP Group PLC (LON:FIPP) said its portfolio company Alusid, in which it holds a 35.6% stake, has received a £125,000 investment from the UK government’s Future Fund as part of a £250,000 fundraising via a convertible loan.
The investment firm said the investment from the Future Fund, which was established to support innovative UK businesses currently affected by the coronavirus, has been matched by £100,000 from Frontier IP and £25,000 from a private investor.
READ: Frontier IP higher as portfolio value surges alongside profit jump
Frontier IP said the funds will be used to accelerate the development and commercial scale-up of Alusid’s patented technology to create premium quality tiles and other surfaces from recycled ceramic, glass and other industrial waste. The company completed a successful pilot on industry-standard mass production equipment earlier this year, which it said will increase capacity to 1,000 square metres per day from 4,0000 square metres a year.
Alusid’s customers include Pret-a-Manger, Harrods, Selfridges, Nando’s and Amazon UK, secured through its distributor Panaz.
“This investment, made possible by the Future Fund, will enable Alusid to launch the world’s first retail tile made from 95 per cent recycled material in the New Year. Although we expect disruption from the [coronavirus] pandemic to continue, this investment ensures we are in a strong position to deliver on our ambitious plans”, Alusid co-founder and chief executive Alasdair Bremner said in a statement.
“This investment from the Future Fund will be invaluable in supporting Alusid’s move into mass production. The scale-up opens up new markets for the Company and I am confident that the combination of green technology and high-quality products will prove very attractive to potential industry partners”, added Frontier IP CEO Neil Crabb.
Shares in Frontier IP rose 2.3% to 67p in mid-morning trading on Tuesday.
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