A Perth-based textiles company has announced plans to list on the Australian stock market, which is not necessarily newsworthy in itself, except for the fact that it makes clothes derived from beer.
According to a report in The West Australian, Nanollose is planning to raise $5 million from a public listing to assist in commercial development.
Data released by the ABS earlier this year shows Aussies still enjoy beer for its more common usage as a refreshing beverage, but advances in technology mean it can now be used for clothes as well.
Nanollose uses its technology to extract cellulose, which is one of the main ingredients in textile production.
While cellulose is usually derived from cotton and linen, Nanollose instead converts biomass from the waste generated by the production of beer, wine and liquid foods.
The company emerged two years ago when it debuted a dress made of material leftover from beer fermentation at a fashion expo in Milan.
That followed an experiment with a dress made from fermented wine extract, which may have raised concerns about the drinking habits of the wearer — it still smelt like wine.
Nanollose lodged its prospectus with ASIC on August 21, and is inviting investors to subscribe for 25,000,000 shares at 20 cents. The company is aiming to raise $5 million from a fully-subscribed float, managed by Mac Equity.
The prospectus states that the offer will run until 11 October, with the issue of shares scheduled for 18 October. No shares will be issued unless a minimum raising of $5 million has been achieved.
As part of the share issue, investors will be required to make a minimum investment of $2,000 (10,000 shares), with additional investments to be made in $200 increments.
According to The West Australian, the funds will be used to improve the durability and wash-ability of the beer-derived fibre, and also carry out further research and development.
The company said in its prospectus that it plans to allocate $2.2 million of the funds raised to R&D, with a further $400,000 each to patent applications and marketing activities.
Nanollose CEO Alfie Germano said that the company’s technology is helping to lead the way in reducing environmental impacts from the textiles industry.
Germano compared Nanollose’s fibre to cotton, which uses the second-highest amount of water in Australian agriculture.
“We believe we have a solution to this in our fibre, which can be used in the same way as other fibres to make clothing and textiles but with a dramatically reduced environmental footprint,” Germano told The West Australian.
The company is looking to industries in Asia as a source for fibre, and also plans to run more pilot trials using the waste generated by brewing companies and food producers.
Business Insider Emails & Alerts
Site highlights each day to your inbox.