Closed Loop Fund will invest up to $3 million with GreenMantra Technologies, a clean technology company that produces high-value polymer products from waste plastics, to help the firm expand its manufacturing operations in Brantford, Ontario.
The expansion will increase the plant's annual capacity of 5,000 metric tons by an additional 2,500 metric tons per year. This will help GreenMantra meet growing demand for its polymer products, as well as increase the diversion of waste plastics from disposal into sustainable reuse. The investment will enable GreenMantra to expand the capacity of its plant, which converts post consumer and industrial waste plastics, including hard to recycle films and bags, into high-value waxes. These polyethylene and polypropylene waxes, marketed under the Ceranovus brand, are used in various industrial applications including asphalt paving and roofing, plastics processing, adhesives and coatings.
Closed Loop joins existing GreenMantra investors ArcTern Ventures and Cycle Capital Management in supporting the continued growth of the company. Both firms specialize in investing in companies focused on clean technology and sustainability.
"GreenMantra's platform technology is an important innovation that builds a new regional market for post-consumer recycled mixed plastics," Margot Kane, Closed Loop Partners CFO and chief investment officer said in a statement. “GreenMantra's patented process enables the up-cycling of plastic waste into higher value products and is directly aligned with our goal of funding replicable technologies that will help unlock additional investment in recycling."
Construction of the plant expansion is anticipated to begin later this year with start-up of the new capacity slated for the third quarter of 2018.
"We are pleased with Closed Loop Fund's investment in our technology and their belief in our proven business model," said Kousay Said, president and chief executive officer of GreenMantra. "We are taking plastic waste that is destined for the landfill and cost-effectively transforming it into materials that add significant value to our customers' products and processes. This investment will enable us to continue our rapid growth and provides additional credibility for our efforts."