Solazyme changes its name to TerraVia and focuses on food

 
Solazyme announced that it is focusing the company exclusively on food, nutrition and specialty ingredients, harnessing the power of its transformational algae innovation platform. The name of the company will be changed to “TerraVia™”. The company is currently active in developing new products, including gluten-free bakery ingredients.

The evolution leverages over a decade of R&D and product development on an innovative suite of algae-based food, nutrition and specialty ingredients, as well as extensive investment in building manufacturing facilities, obtaining regulatory approvals, and commercializing initial products. With these foundational elements in place, the company is positioned to create value and impact in the rapidly growing plant-based food, nutrition and specialty ingredients sectors. Solazyme will be renamed “TerraVia™” to reflect the refined focus and journey to improve the lives of people and the planet.

Jonathan Wolfson, the company’s co-founder and CEO, said: “Our new generation of breakthrough ingredients and foods delivers on nutrition, flavor and texture all with an unparalleled sustainability profile, and these products are already beginning to penetrate a market that is demanding healthier alternatives”.

“There are opportunities for our algae-based ingredients across every aisle of the grocery store, driven by consumer demand for clean labels and an increasing focus on plant-based foods with great taste,” said Mark Brooks, SVP and General Manager of Food Ingredients at Solazyme. “We are enhancing a new generation of foods that deliver better flavor and nutrition, including healthier fats and enhanced protein, fiber and micronutrients. In addition to products incorporating our ingredients on store shelves today, we are currently in active development projects with major CPG companies for new products such as salad dressings and gluten-free bakery products that are healthier and offer the taste and texture that consumers demand.”

Prior to joining Solazyme, Brooks was the Global Business Director of Truvia®, where he led the business to over USD 100 million in global retail sales.

The company has entered into a definitive purchase agreement for a strategic financing round of approximately USD 28 million in newly issued, no-coupon convertible preferred shares with a conversion price of USD 2.00 per common share, which represents an approximately 25 per cent premium over the 15-day trading average of Solazyme’s common stock. The investment was funded by an outstanding and accomplished group of leading investors and entrepreneurs in food, nutrition and innovation. The investor group includes:

• Glenhill Capital (active consumer investor including seed investor in Boulder Brands)
• VMG Partners (premier consumer private equity fund: KIND, Pretzel Crisp, Pirate’s Booty, Natural Balance)
• PowerPlant Ventures (founders of Zico Coconut Water and the Veggie Grill)
• Charles Chang, founder and former CEO of Vega (Lyra Growth Partners)
• ARTIS Ventures (investors in food and technology, including Juicero, ChefsFeed and Modern Meadow)
• Simon Equities (investors in food and consumer products, including Plum Organic, Method, Shinola)
• Jack Davis (retired CEO of Ventura Foods, the largest maker of vegetable oil-based products in the U.S.)
• Keith Belling (founder and former CEO of Popchips)

Co-founder and longtime CEO, Jonathan S. Wolfson has notified the Board of Directors that as part of this transition he will shift his focus from daily operations to strategy and special projects including those with a consumer focus. At his request, a search for a new CEO will begin immediately. Mr. Wolfson has been appointed Chairman of the Board and will remain as CEO while the search is underway. He will assume the full-time role of Executive Chairman effective upon the placement of the new CEO. Jerry Fiddler will remain on the board and has assumed the role of lead independent director.

The Company also announced the strengthening of foods expertise on its Board of Directors with the addition of seasoned food industry executive, Irene Chang Britt. Britt is a past President of Pepperidge Farm; SVP, Chief Strategy Officer, Campbell’s Soup Company; General Manager, Kraft Foods and VP at Nabisco.