Capital Raising
OPEN
FP Paradigm
The Future of Food and Beverage Packaging is about to change...
INDUSTRY
Plastic Recycling
RAISING
A$5.7M
Pre-Money Valuation
A$78M
MINIMUM INVESTMENT
A$65,000
Investment Highlights
Company Overview
Products & Services
Transaction Overview
Team
News
Transaction Summary
FP Paradigm
Raising A$5.7M
Pre-Money Valuation A$78M
Minimum Investment A$65,000
Investment Highlights
FP Paradigm is at the forefront of eight groundbreaking projects in food and beverage packaging and plastics recycling.
These initiatives, the Future Food Systems CRC, hold immense potential. It involves 9 Professors and 10 Post Docs.
FP Paradigm is advancing with a pilot extrusion machine, collaborating with Paco Industries Pty Ltd for commercial-scale manufacturing. Paco in turn has collaboration agreements with Arnott's, Pablo, and Rusty’s, and TACCA Industries
Company Overview
Great Future Potential
Transformation of transparent food and beverage packaging away from fossil fuel-based plastics to infinitely recyclable sustainable materials that are economically viable, leading to a truly positive environmental impact.
Strong Potential Market
The Plastics Packaging Market is A$4B in Australia alone. A$2B of the market is PET (polyethylene terephthalate).
FP Paradigm (FPP) is an impact investor with NewSouth Innovations (wholly-owned subsidiary of University of New South Wales) as a shareholder, that invests in innovative Projects, seeking to transform society.
FPP has invested in eight projects within the Future Foods System CRC that seek to transform transparent food and beverage packaging away from fossil fuel-based plastics to infinitely recyclable sustainable materials that are economically viable.
Vision
At the forefront of eight groundbreaking projects in food and beverage packaging and plastics recycling FPP strive to be the solution to the plastics problem in food and beverage packaging, closing the gap in a circular economy.
Research
FPP has invested in eight projects within the Future Food System CRC that seek to transform transparent food and beverage packaging away from fossil fuel-based plastics to infinitely recyclable sustainable materials that are economically viable.
Team
The team is made up of leading chemical engineers, nanotechnologists, green chemistry experts, life-cycle sustainability experts and a discrete choice modelling expert from University of New South Wales (UNSW), and Consultants from University of Sydney.
Research
FPP's cutting-edge research in 8 projects is in the 3 key areas of New Plastics Technology, Food Waste Management, and Measurement & Consumer Research.
The Big Plastic Problem
Fossil fuel-based plastics have proven to be an environmental problem, in particular single-use plastic which sadly ends up in landfills. In Australia alone, the plastics packaging market is $4B, and only 18% of this plastic goes through recycling (APCO, 2021). Recyclable transparent food and beverage packaging at the moment can only be recycled 2-3 times.
The Big Plastic Solution
FPP has invested in eight projects within the Future Food System CRC that seek to transform transparent food and beverage packaging away from fossil fuel-based plastics to infinitely recyclable sustainable materials that are economically viable. What we can provide is another solution to the market to close the gap in a circular economy and contributing towards achieving Australia's 2025 National Packaging Target 2 of 70% of plastic packaging being recycled or composted (APCO, 2021)
Projects
FPP is raising A$5.7M, it estimates it will use A$3M of the funds raised for the expansion of the Business, allocated across each of 8 projects. With the remaining A$2.7M used for working capital.
New Plastics Technology
Project A: Organic Recycling - Using solvents to disperse and rebuild polymers (Aqueous Dispersion).
Project B: Synthesis of Biomass Materials to Produce Plastics - Alternative biomass feedstock, eg: grass, hops, hemp.
Project F: Carbon Utilisation & Material Synthesis - Conversion of carbon dioxide to ethylene monomers.
These Projects aim to provide transparent sustainable food packaging for biscuits, cakes, fruits, meat, seafood, coffee, and beverages.
Food Waste Management
Project C: Nanowire Sensors - Use of electro nano sensors to maintain food quality and reduce waste.
Project D: Colour-metric Sensors - Colour indicator to support food quality and reduce waste.
Project E: Using Blockchain to trace food and source - Questionnaires relevant to each technology in the aforementioned projects.
Measurement & Consumer Research
Project G: Life Cycle Index - Creation of a new index that looks at the total life cycle analysis of the technologies in the technologies from the relevant projects (Projects A-F).
Project H: Consumer Research - Quantitative Research with discrete choice modelling to support the aforementioned projects (Projects A-F).
Transaction Overview
Terms of offer
FPP is seeking to raise up to A$5.7M against an R&D claim of A$10M in 2023. FPP will provide a loan which pays interest of 10% per annum, payable quarterly to investors. FPP will also provide a free option for investors to convert their debt to equity in FPP.
Borrowing Details
- Amount: A$5.7M
- Maturity Date: 2 years from Draw date, with the ability of the borrower to pay after 6 months
- Interest Rate: 10% per annum payable quarterly in arrears.
- Security: Security over current R&D claims. Note: R&D claims could be substituted by other current R&D claims.
- Security Ratio: 80%, that is principal and interest outstanding should not exceed 80% of the R&D claim.
- Minimum investment: A$65,000
Free Option and Strike Price
For every A$8,000 lent to FPP, FPP will provide the lender with 1 free option to purchase 1 share in FPP at a price the equivalent today of A$7,800 per share exercisable within 2 years' time from the date of the loan. This is the effective price that was paid by UNSW for its shares.
It is envisaged that within 2 years a liquidity event will occur in the form of a trade sale, buy-in, or a listing. The Price of shares should be substantially higher than the conversion price.
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