To provide an overview of PetroAlgae. This will help inform an investment decision.
- A web link to PetroAlgea is provided herein.
- PetroAlgae claims to be "one of the leading biotechnology companies, providing you with the high quality, sustainable, renewable and carbon-neutral source of oil."
- The company was founded in 2006 in Melbourne, Florida. Its headquarters is located at 1901 South Harbor City Boulevard, Suite 300, Melbourne, Florida 32901, United States.
- The company claimed to be "developing a proprietary environmentally-friendly algae that generates about two hundred times more energy per acre than traditional biofuel crops such as soybean oils, together with a process by which the technology can cost-effectively produce renewable biofuel and petroleum in many applications such as transportation fuels (e.g., biodiesel), heating oil, and plastics."
- PetroAlgae opines to be a "team of scientists and researchers, producing petrol from the natural and genetically engineered algae. We use the right technology and the best systems to produce pure oil."
- The company's mission is to eradicate all the technical barriers affecting the production of algae fuel and to produce sustainable, affordable, and scalable algae-based biofuels.
- Some leaders at the company include;
- PetroAlgae was the fourth company created by the XL TechGroup, Inc. Other companies created by XL TechGroup, Inc. include AgCert International plc (May 2002), TyraTech LLC (July 2004), and DxTech LLC, (July 2005).
- In 2008, the company "leased environmental-simulation chambers originally developed for the Mars mission to discover the optimal environment for growing algae and then to create it on an industrial level."
- In August 2008, the company was purchased by PetroTech Holdings, a Delaware corporation.
- In November 2009, PetroAlgae signed a memorandum of understanding with India’s largest company by sales, Indian Oil Corp, to license its proprietary technology to the company.
- On the 11th of August 2010, PetroAlgae notified regulators of its plans to launch an IPO.
- The IPO was aimed at raising to "$200 million in an offering led by underwriters Goldman Sachs, UBS Investment Bank, Citi, Piper Jaffray, Cowen & Co, and Baird."
- As of 2011, PetroAlgae ranked 55th in the world among the Hottest Companies in Bioenergy.
- As of 2009, PetroAlgae relied basically on fundings from its parent company PetroTech Holdings, and its affiliates.
- According to Pitchbook, the company has raised three rounds of funding since its creation.
- As of 2006, the XL TechGroup, Inc. owned 95% of the company.
- In 2007, 2008 and 2009, the company lost a collective $58 million. By 2010, its cumulative loss was $73.8 million, with $1.2 million of cash.
- As of December 2008, "the Grins’ original fund, Laurus Master Fund, was carrying its stake in PetroAlgae at $352 million, or 54% of its net assets. The cost basis for that stake was listed at $28.7 million."
- In 2009, PetroAlgae announced that it had raised $10 million (€7.4 million) through the sale of about 3.2 million of newly-issued shares of common stock to two of its existing investors. The fund was to aid in financing the commercial launch of its biodiesel product derived from algae.
- As of 2010, the company had a market cap of $2.77 billion on the OTC exchange.
- In 2010, PetroAlgae shares hit its highest value of $26.75 on April 6 and a low of $6 on June 10.
- In 2011, PetroAlgae had a market cap of $1.8 billion, net debt of $57 million, total assets of only $4 million, and a one-year net loss of $38 million.
- As at the said date, the company had not generated any revenues since inception.
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