Stock Exchange | Spinnova, which is developing an alternative to cotton, is listed on the First North list of the Helsinki Stock Exchange

Spinnova, which is building a plant in Jyväskylä, plans to go public. The company is already the tenth listed company this year.

Fiber Technology Company Spinnova intends to list on the Helsinki Stock Exchange’s First North growth marketplace. During the early part of the year on the stock market is listed or is currently being listed ten companies.

The IPO consists only of new shares issued by the company. The gross funds to be raised through the share issue are expected to be approximately EUR 100 million.

EUR 60 million will be used to expand wood-based fiber production. Approximately EUR 40 million will be used for other business development, such as expanding production capacity for leather-based fibers, research and development, hiring new employees, patents and commercialization of the business.

Spinnova says it expects to benefit from a broader shareholder base and access to international capital markets with the listing.

Last week company said he would start making textile fiber from waste leather together with KT Trading, a sister company of the Danish shoe manufacturer Ecco. Until now, Spinnova has made fiber at its pilot plant in Jyväskylä, mainly micron-sized wood pulp.

Spinnova is building a commercial scale plant in Jyväskylä with the pulp company Suzano, where, in addition to the pilot plant, Spinnova has had a research and development center.

Spinnova’s goal is to produce commercially recyclable, biodegradable fiber that does not contain harmful chemicals. Unlike traditional wood textile fiber technologies, Spinnova does not dissolve the pulp but grinds it so small that it can be compressed directly into a textile fiber.

According to the company, the fiber it produces uses 99 percent less water compared to the cotton value chain. In addition, wood and textile or agricultural waste such as wheat or barley straw can be used as a raw material for the fiber.

Spinnovan founded in 2014 by the CEO Janne Poranen and Juha Salmela are both physicists who worked at VTT at the same time. From there, they left in 2014 to start their own business.

In the spring of 2020, Poranen estimates In an interview with HSThe company’s clothing may be on sale in a few years. At that time, Spinnova had made the first samples in collaboration with Marimekko.

Read more: Will this fabric made of wood become a challenger for cotton? The Jyväskylä-based company created recyclable Textile and got well-known financiers behind it

After the Marimekko collaboration, Spinnova has developed its materials with Bestseller and Bergans. The Swedish chain H&M also started cooperating with Spinnova. Ecco and Spinnova have been collaborating on research since 2018.

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source https://pledgetimes.com/stock-exchange-spinnova-which-is-developing-an-alternative-to-cotton-is-listed-on-the-first-north-list-of-the-helsinki-stock-exchange/