Local seedling producer CellFor Inc. has raised US$35 million to expand production capacity and meet growing sales volumes, the company announced Thursday.
California-based institutional investor Capricorn Investment Group led the equity financing, which also included significant participation from CellFor’s existing investors.
CellFor was not available for comment about its expansion strategy, but president and CEO Tom Urban said in a statement that demand is growing for the company’s products.
“This is a clear indication that varietal forestry is gaining substantial momentum and is providing a very strong return potential for CellFor’s existing major investors.”
The company uses biotechnology processes to manufacture what it calls “genetically superior” conifer seedlings.
BIV caught up with B.C.’s seedling industry in June when Victoria-based PRT Forest Regeneration Income Fund (TSX:PRT.UN) revealed plans to create energy from willow plantations. (See “Willow plantations to fuel seedling producer’s bioenergy business plan” – issue 1077; June 15-21, 2010)