AlgiSys BioSciences, Inc. announced that investment bank Peakstone Securities, LLC has been retained to raise $45 million in Series B capital to fund its commercial plans for fish oil substitutes for omega-3s.
 
The company can sustainably and economically produce natural, non-GMO, fish-free omega-3 fatty acids ingredients, as well as aquatic plant-based protein suitable for a wide range of products. AlgiSys will target high-growth markets including aquaculture, animal health, human nutrition and supplements, pharmaceuticals, regenerative health therapies, and cosmeceuticals. The company reports that it can achieve the highest and purest concentrations of EPA from microalgae through a scalable fermentation process.
 
The company has global patents and proprietary technology as part of its intellectual property portfolio, with additional patents filed, and its heterotrophic fermentation process involves no pathogens or contaminating elements. AlgiSys’s microalgae contains omega-3, protein, and EPA that partially converts into DHA, both of which are found in fish oil. Its proprietary algae strains can also produce protein that can be concentrated as high as 80-90%.
 
While healthy lifestyle trends are demanding increased amounts of foods rich in omega-3s, marine life rich in omegas are being depleted from the oceans at an irreplaceable rate due to overfishing and climate change, the company reports. An alternative to fish oil for human nutrition and animal health provides an alternative to meet growing demand.
 
“40% of the world’s population is fish-dependent for protein,” Peter Colella, AlgiSys CEO, said. “We’re ready to help solve this global challenge. AlgiSys has what we believe is the best scientifically tested and proven platform available today to produce EPA omega-3 rich ingredients for multiple industries. For example, aquatic farmers soon will be able to economically feed their fish with EPA rich microalgae ingredients instead of with unsustainable fish by-products.”
 
“EPA has multiple health benefits and is vital for healthy heart function,” Dr. Charles Roe, AlgiSys’s chief technology officer, said. “Extensive research and studies published in other medical journals have shown that EPA’s anti-inflammatory properties can reduce cardiovascular risk factors such as high blood pressure and triglyceride levels, inflammation, and arterial plaque.”
 
Series B funding will be used for commercialization, strategic acquisitions, and to hire key executives, the company reports. The management and operations team currently includes entrepreneurs, manufacturing and financial executives, scientists, and engineers. The company reports that it is committed to principles consistent with the United Nations’ global marine sustainability goals. During the next seven years, AlgiSys aims to produce over 170,000 tons of algae, which translates to an estimated 13% of the captured fish market on an annual basis.