Full Press Release Details
ENTERS INTO RESEARCH AND DEVELOPMENT AGREEMENT WITH ABENGOA BIOENERGY IN THE
AREA OF CELLULOSIC ETHANOL PRODUCTION
BIOENERGY TO PURCHASE $10 MILLION OF DYADIC COMMON STOCK
Florida, October 27, 2006. Dyadic International, Inc. (AMEX:
biotechnology company, today announced that it has signed a three-year research
and development (R&D) agreement and a stock purchase agreement with Abengoa
Bioenergy R&D, Inc. (ABRD), an Abengoa Bioenergy Company focusing on
research and development. Under the terms of the purchase agreement, Abengoa
Bioenergy has agreed to invest $10 million in Dyadic, for which it will be
issued 2,136,752 shares of Dyadic Common Stock at $4.68 per share (based on
closing sales price on October 25, 2006, as reported on the American Stock
Exchange). The closing of the sale of the common shares is subject to approval
of the listing of the shares by the American Stock Exchange and other customary
closing conditions. After the closing, under certain circumstances, additional
securities may be issuable to ABRD. Cowen and Company, LLC, acted as an advisor
will use the proceeds from this private sale to fund its R&D obligations
under the R&D agreement, which has as its objective the development of a
cost-effective enzyme production system for commercial application in Abengoa
Bioenergy's bioethanol (cellulosic ethanol) production process. The R&D
agreement, which does not become effective until the private sale closes, calls
upon Dyadic to use its proprietary technologies to develop one or more enzyme
mixture manufacturing systems customized to ABRD's proprietary biomass
substrates. The R&D agreement contemplates that Dyadic will perform both
foundational research of general application to the cellulosic ethanol field
specific applications research for the achievement of the goals of ABRD's
program. Under the terms of the R&D agreement, if Dyadic successfully
develops one or more enzyme manufacturing systems for Abengoa Bioenergy, Dyadic
may be entitled to receive license fees, technology transfer fees and royalties
on ethanol sales. Other financial terms were not disclosed.
Bioenergy is considered to be the second largest ethanol producer in the world
and a leader in the fields of both corn-derived and cellulose-derived ethanol
production. We are extremely pleased to partner with Abengoa Bioenergy to
leverage Dyadic's patented C1 platform enzyme technology to enable commercial
development of biomass derived ethanol," said Glenn E. Nedwin, Ph.D., Chief
Science Officer for Dyadic.
recognized that Dyadic's enzyme technology, especially in the field of
cellulosic ethanol, is state-of-the-art," said Gerson Santos-Leon, R&D
Director of Abengoa Bioenergy. "Abengoa Bioenergy is looking forward to working
with Dyadic in the development of large-scale enzyme production systems and
manufacturing processes for use in the production of abundant low cost
fermentable sugars from biomass, with initial focus on cellulosic ethanol
very excited to enter into this partnership with Abengoa Bioenergy, a recognized
leader in the field of cellulosic ethanol, and are also pleased to welcome
as a strategic investor, research collaborator and Dyadic shareholder,"
commented Dyadic's President and CEO, Mark Emalfarb. "Abengoa Bioenergy is a
visionary company and an important first partner for Dyadic for its
Biorefineries Business. Additional partners will stand to benefit not only
access to Dyadic's technologies specific to their area of interest but also from
the core technology development program that is fundamental to efficient
production of ethanol, other biofuels, polymers and other chemicals from
biomass, thereby reducing our dependence on foreign oil."
Bioenergy s President & CEO, added: "Dyadic is recognized as a leader in
innovation and technology in the enzymes production field. This investment
the R&D collaboration with Dyadic represent a key building block in the
Abengoa Bioenergy Biomass Program, particularly in the area of specialized
to the parties' purchase agreement, the Company has agreed to file a
registration statement with the U.S. Securities and Exchange Commission covering
the resale of the shares issued at closing, as well as the additional shares,
any, issuable after the closing.
securities offered in the private sale were not registered under the Securities
Act of 1933, as amended (the "Act") or any state securities laws, and may not
offered or sold in the United States absent registration, or an applicable
exemption from registration, under the Act and applicable state securities
International, Inc. is engaged in the development, manufacture and sale of
biological products using a number of proprietary fungal strains to produce
enzymes and other biomaterials, principally focused on a system for protein
production based on the patented Chrysosporium lucknowense fungus, known as
Dyadic is applying its technologies to produce enzymes for use in converting
various agricultural products (e.g. corn) and waste products (e.g. switch grass,
wheat straw, sugar cane bagasse, etc.) into fermentable sugars, which can then
be used in the production of traditional and cellulosic ethanol as well as
products currently derived from petroleum. Dyadic's C1 technology also is being
developed to facilitate the discovery, development and large-scale production
human antibodies and other high-value therapeutic proteins. Dyadic currently
sells more than 45 liquid and dry enzyme products to more than 200 industrial
customers in approximately 50 countries for the textile, pulp & paper and
animal feed industries.
Bioenergy is considered to be the second largest ethanol producer in the world
with production facilities located in Europe and the USA. Abengoa Bioenergy
one of the five business units of Abengoa, S.A. (ABG:MC),
technology company that applies innovative solutions for sustainable development
in the infrastructures, environment and energy sectors. Abengoa, S.A. is a
listed company on the Madrid Stock Exchange with 2005 revenues of approximately
two billion euros, and is present in more that seventy countries where it
operates with its five business units; Solar, Bioenergy, Environmental Services,
Information Technologies, and Industrial Engineering and Construction.
Statement for Forward-Looking Statements
statements contained in this press release are "forward-looking statements."
These forward-looking statements involve risks and uncertainties that could
cause our actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. For a discussion of these risks and
uncertainties, please see our filings from time to time with the Securities
Exchange Commission, which are available free of charge on the SEC's web site
http://www.sec.gov, including our Annual Report on Form 10-KSB for the year
ended December 31, 2005, and our subsequent filings with the SEC.. Except as
required by law, we expressly disclaim any intent or obligation to update any
forward-looking statements.
(Sasha) Bondar, 561-743-8333