By Dominic Chopping
Finnish sustainable textile material company Spinnova Oyj said Thursday that Adidas AG has agreed to invest 3 million euros ($3.7 million) in the company's contemplated initial public offering.
Spinnova, which is planning to list on the Nasdaq Helsinki First North Growth Market, said it has developed technology to make textile fibre out of wood or waste, such as leather, textile or food waste, without harmful chemicals.
It said its patented Spinnova fibre creates zero waste and side streams or microplastics, and involves minimal CO2 emissions and water use.
Spinnova has a continuing joint development collaboration with Adidas and through today's commitment Adidas intends to secure access to significant volumes of Spinnova materials in the future, it added.
The company's cornerstone investors include certain funds managed by entities owned by Aktia Bank PLC, certain funds managed by WIP Asset Management Ltd, certain funds managed by DnB Fund Management, Ilmarinen Mutual Pension Insurance Company, certain funds managed by Pareto Asset Management, certain funds managed by Sp-Fund Management Company Ltd and adidas Ventures BV.
These cornerstone investers have in total committed to subscribe for shares totaling EUR58 million in the contemplated offering at a pre-money equity value of up to EUR275 million, conditional on the company raising gross proceeds of at least EUR100 million from the offering.
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(END) Dow Jones Newswires