Cyanotech to invest $5.5 million to upgrade its microalgae facility
KAILUA KONA, Hawaii (September 13, 2012) — Cyanotech Corporation, has completed a long-term loan agreement with Pacific Rim Bank in Honolulu, Hawaii providing for $5,500,000 in aggregate credit facilities. The loan proceeds will be used to finance capital improvements, which include new equipment to be used in the processing of its natural astaxanthin and the addition of new administration and warehouse buildings at its Kona, Hawaii facility. The new equipment includes the purchase of supercritical carbon dioxide extraction equipment for which Cyanotech has signed a purchase agreement with Uhde Corporation of America.
“The company is now focused on our own branded consumer products and the international bulk market. We have strengthened our sales, marketing and product fulfillment capabilities. With that underway, we are adding to our processing and production capabilities to meet the growth in demand, as well as to improve our service levels to current bulk and retail customers,” said President and CEO Brent Bailey.
“The extraction process is currently being performed for us by outside partners. Bringing this capability in house will make us a vertically integrated natural astaxanthin supplier and is expected to reduce processing time and lower costs. While these are long-term projects with components being built out over the next 18-24 months, they will significantly strengthen our operational foundation and competitive position.”