NexPoint Capital Inc. Announces $2M Investment in Early Growth Funding Round for Bioplastic Manufacturing Company PlantSwitch
PlantSwitch completes Early Growth Funding Round with $7.7 million capital raise.
NexPoint's investment will help PlantSwitch scale production, market and deliver products to new nation-wide clients.
PlantSwitch's proprietary production process upcycles agricultural waste, is carbon negative and is less expensive than traditional bioplastic manufacturing.
DALLAS, Nov. 28, 2023 /PRNewswire/ -- NexPoint, a multi-billion-dollar alternative investment firm, today announced its investment of $2M in the early growth funding round of PlantSwitch (the "Company"), a bioplastics manufacturing company with a carbon negative production process that upcycles agricultural waste to produce biodegradable and compostable resins for single-use products. The investment is part of a total $7.7M raise in this early fundraise round, to which other institutional investors, along with NexPoint, subscribed.
PlantSwitch's mission is to "to replace all petroleum-based single-use plastic with plants" by manufacturing and distributing its uniquely compostable bioplastic resin. PlantSwitch's manufacturing process utilizes agricultural waste products such as rice husks, wheat straw, and other cellulose rich byproducts in combination with a polymer to make sustainable bioplastics while upcycling agricultural waste.
In addition to its carbon negative production process, PlantSwitch's bioplastics are cheaper to produce and more compostable than comparable bioplastics. PlantSwitch, which was founded in 2020 by SMU Graduates Dillon Baxter and Maxime Blandin, has also recently closed on a 52,000-square-foot manufacturing facility in Sanford, N.C. which will increase its production capacity.
NexPoint identified PlantSwitch at this early stage by leveraging its research capabilities and extensive network, and its investment demonstrates the firm's continued commitment to environmentally sustainable investment standards and support of early-stage companies with uncorrelated potential. NexPoint's investment, and this fundraise generally, will help the Company continue to scale its production capacity, increase its marketing capabilities and help deliver products to existing and future customers.
PlantSwitch recently entered framework contracts with several nation-wide restaurant and grocery store chains which it will begin supplying as early as next month. As PlantSwitch scales, its founders expect growing its full-time workforce to over 50 employees by the end of 2024 and anticipate needing additional manufacturing space in the next few years.
On NexPoint's investment, Co-Founder and CEO of PlantSwitch Dillon Baxter remarked: "Having institutional backing is a huge step for PlantSwitch. With this and other investments from our early growth funding round, we will be able to continue to scale our business and deliver sustainable and biodegradable bioplastics to our eager future clients." Baxter continued, "There is so much that makes PlantSwitch unique, and funding from institutional investors like NexPoint show that they believe in the company as much as we do."
"At NexPoint, we are always looking to support companies that do important work, and offer attractive opportunities for growth," said Scott Johnson, Managing Director & Portfolio Manager at NexPoint Capital, "PlantSwitch certainly fits that bill and represents an investment that aligns with our values and expertise in Climate Tech businesses."
"Some studies forecast bioplastic demand increasing from 4.9 billion pounds in 2022 to almost 13.9 billion pounds in 20271." Remarked Dillon Baxter, Co-founder and CEO PlantSwitch, "With that kind of demand increase, PlantSwitch's biggest priority is sustainable growth. We are confident that our product, our supporters like NexPoint, and our distinguished board can help PlantSwitch scale in a deliberate way that allows us to take advantage of demand conditions."
PlantSwitch has also recently received a $4.94M federal grant from the department of agriculture.
About NexPoint
NexPoint is a multibillion-dollar alternative investment firm comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. NexPoint provides differentiated access to alternatives through a range of investment solutions, including public and private real estate investment trusts, tax-advantaged real estate vehicles, merger arbitrage and event driven strategies, other private real estate investments, closed-end funds, interval funds, and a business development company. NexPoint is based in Dallas, Texas and is part of a network of affiliates with expertise across the asset management and financial services spaces. For more information visit nexpoint.com.
About PlantSwitch
PlantSwitch's mission is to replace all petroleum-based single-use plastic with plants. Our proprietary technology upcycles agricultural residues into a plant-based resin that can be used to make nearly all types of plastic products. A low-cost, zero-waste, drop-in replacement to plastic is finally here. Learn more at https://www.plantswitch.com/.
Contacts
NexPoint
Mike Geller
PlantSwitch
Dillon Baxter, Maxime Blandin
EMAILS: [email protected], [email protected]
SOURCE NexPoint
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