MVC Capital Announces Investment in Biovation Holdings Inc.
PURCHASE, N.Y.--(BUSINESS WIRE)--
MVC Capital, Inc. (NYSE: MVC), a publicly traded business development
company that makes private debt and equity investments, today announced
that it will invest up to $3.05 million in Biovation Holdings Inc., a
manufacturer and marketer of environmentally friendly, organic and
sustainable laminate materials and composites.
Under the terms of the transaction, MVC has funded a $1.5 million note
and, upon the realization of certain manufacturing, sales, and capital
expenditure milestones, will fund a $1.55 million preferred equity
Based in Mankato, MN, Biovation produces organic material made primarily
of corn and soybean co-products that, through a proprietary process, can
be extruded into flat sheets or rolls, which can be printed upon and
textured. Biovation's green products are manufactured without
formaldehyde or other hazardous and harmful items, which are currently
found in nearly 100% of the laminates produced today. Biovation will
focus initially on the decorative laminates market under its Biosurf
brand name. Long-term, the proprietary Biosurf product is anticipated to
be used in many industries including decorative lighting, military
applications, transportation, print media, and electronics.
"We are pleased to partner with Biovation, an entrepreneurial and
innovative company with revolutionary green laminate products and
proprietary technologies applicable to a large number of end markets,"
said Michael Tokarz, Chairman & Portfolio Manager of MVC Capital, Inc.
Michael Riebel, Chief Technology Officer at Biovation Holdings Inc.,
said: "With the significant financial and operational resources MVC
brings to Biovation, we believe we can better achieve our near and
long-term objectives. MVC has already demonstrated their hands-on
investment approach and we look forward to working closely with them as
we enter the next phase of our growth."
"We believe Biovation is well positioned to take advantage of numerous
opportunities that exist in the highly-fragmented decorative laminates
industry," said Peter Seidenberg, Chief Financial Officer of MVC
Capital, Inc. "We look forward to working closely with Biovation's
talented team and helping grow their business and deliver additional
products to the marketplace."
About MVC Capital, Inc.
MVC Capital is a Business Development Company traded on the New York
Stock Exchange that provides long-term debt and equity investment
capital to fund growth, acquisitions and recapitalizations of companies
in a variety of industries. For MVC's investor relations, please call
914-510-9400. All media inquiries should be directed to Nathaniel
Garnick at 212-687-8080.
About Biovation Holdings Inc.
Biovation Holdings, Inc. is a manufacturer and marketer of
environmentally-friendly, organic and sustainable materials and
composites for use in the production of laminates and green products
under the brand name Biosurf. More information about Biovation can be
found at www.biosurfsolutions.com.
The information contained in this press release contains
forward-looking statements. These forward-looking statements are subject
to the inherent uncertainties in predicting future results and
conditions. Certain factors could cause actual results and conditions to
differ materially from those projected in these forward-looking
statements, and these factors are enumerated in the company's periodic
filings with the Securities and Exchange Commission.
For MVC Capital, Inc.
Nathaniel Garnick, 212-687-8080
Source: MVC Capital, Inc.
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