Frontier IP Group Plc (LON:FIPP) told investors that its portfolio company focused on innovative building materials, Alusid Limited, has brought in £1.34mln of new capital to boost its production capacity.
Specifically, Alusid will use the funds to support the design, planning and location of a new factory.
AIM-quoted Frontier supported the fundraising, which values the investee at a total of £4.86mln.
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In turn, it values Frontier’s 35.6% stake in Alusid at £1.73mln up from £700,000 at the point of the last valuation.
The funding round, meanwhile, remains open with up to £1.75mln of additional funding possible.
"We're delighted with the success of the Alusid funding round and the belief shown by investors in the potential of the company,” said Neil Crabb, Frontier chief executive.
“With consumers increasingly focused on sustainability and the impact of waste on the environment, we are confident that Alusid has a very bright future."
Building up the business
Alusid, which uses a patented process to manufacture materials from recycled ceramics and glass, currently produces table tops, tiles and other surfaces at a plant in Preston, Lancashire.
A new factory, which will be based on a continuous flow process, is due to start production in 2020 and it will see output rise to 30,000 square metres per month from 4,000 metres.
The construction of the project is estimated to cost about £10m, and, funding options include a possible initial public offering are being considered.
Alusid sells its product under the ‘SilicaStone’ brand and its new business pipeline includes recognisable names such as Amazon, Four Seasons Hotels, Nando's and Wells Fargo bank.
It is also actively exploring opportunities for international expansion by either licensing or establishing joint ventures.
Dr Alasdair Bremner, Alusid co-founder and chief operating officer, said: “The building industry is increasingly looking for innovative sustainable products such as SilicaStone.
“This successful fund-raising will enable Alusid to move to the next stage in development where we can really capitalise on the economies of scale coupled with lower energy and material costs."