Jump to:

Sonichem hero image

Sonichem

Follow

We convert low-value sawdust into high-value bio-based chemicals with our patented ultrasonic process!

109%
 - 
Funded 14 Dec 2023
£1,100,000 target
£1,222,585 from 412 investors
More
Less

Business overview

Location Southampton, United Kingdom
Social media
Website sonichem.com
Sectors Energy Non-Digital B2B
Company number 06450324
Incorporation date 11 Dec 2007
More
Less

Investment summary

Type Equity
Valuation (pre-money) £6M
Equity offered 16.76%
Tax relief

EIS

More
Less

Business highlights

  • Advanced pilot plant and lab already operational
  • At scale each £1 of biomass yields ~£8 of chemicals
  • Consortium leader of new £600K Innovate UK grant
  • Tapping into a multibillion dollar chemical market
More
Less

Key features

  • Secondary Market
  • Nominee investment min. £10.32 +
  • Direct investment min. £10,000.00 +

Idea

Introduction

Climate and environmental pressures require the use of sustainable chemicals which excludes fossil-derived chemicals (e.g. from coal, gas and oil) and those needing land that can grow food crops (e.g. from maize and sugar).

Only 55% of a log entering a sawmill becomes useable construction timber. The other 45% is woodchips and sawdust, and we use the last of these as feedstock in our process, breaking it down into the three main constituent natural bio-based chemicals: sugars, cellulose and lignin.

We have developed a scalable and patented environmentally friendly process, turning each £1 of sawdust into almost £8 of bio-based sustainable chemicals.

The high growth $17BN bio-based chemicals market is driven by demand for sustainable alternatives to petrochemicals in plastics, cosmetics, and more. Sonichem is at the heart of this transformation, driving the green wave!

Substantial accomplishments to date

2012: Successful proof of concept at lab scale by Imperial College London of ultrasound-assisted biomass fractionation.

2015: EU BioSonic Project - Our ultrasonic fractionation concept was the core innovation for a grant award of €2.5M for a consortium of forestry and industry partners, to design and build what became our first generation pilot plant.

2017-2020: First successful pilot plant trials, led to a series of technological refinements and optimisations. Patents granted in 10 markets.

2021: design of a new scaleable ultrasonic reactor. Winner of the Royal Society of Chemistry’s Best Enabling Technology award.

2022: Seed round of £1.4 million, facilitated the expansion of our team and pilot operations, and a 4th patent is filed. We won R&D support through two iCAST awards and a £100k project co-funded by the IBioIC and the University of Glasgow IAA fund, exploring the versatility of our lignin in sustainable materials.

2023: Leading a consortium awarded an Innovate UK grant of £593,000, with a direct benefit of £260,000 to Sonichem, to develop lignin for automotive interior materials with partners Polestar, Scott Bader and SHD Composites. Discussions are underway with a leading UK sawmill partner to host a first commercial biorefinery and ensure sawdust supply. Futamura (Cellophane) is trialling Sonichem bio-based chemicals for eco-friendly films and has provided a letter of support for a potential purchase of 3,000 Tonnes/yr.

Monetisation strategy

Sonichem will evolve from R&D to profitability with a strategic three-phase plan.

Phase 1: Produce commercial samples, converting low-cost sawdust into higher-value eco-friendly bio-based chemicals, building a broad spectrum of partner industries such as bioplastics, automotive, cosmetics, and more.

Phase 2: Our first commercial biorefinery plant will begin operations, generating revenue while showcasing our scalable technology to future licensees and plant operators. We aim to demonstrate that strong commercial returns are possible whilst offering competitive pricing for our triple-product output.

Phase 3: We expect to expand revenue by licensing agreements, particularly targeting international markets and diversifying into other biomass feedstocks such as waste from sugarcane and palm oil production.

Sonichem's strategy is not just to create a market presence but to lead the way in biorefinery technology, providing sustainable, economical solutions on a global scale.

Use of proceeds

Sonichem is strategically deploying raised funds to progres our monetisation strategy through the following key initiatives:

Operate & Enhance our Pilot Plant: Upgrading the facility to mirror key aspects of a commercial plant, demonstrating our technology can scale whilst producing larger samples.

Finalise a Commercial Plant Design: Whilst refining our current plant's processes, we're also developing the design for a large-scale production facility.

Secure Location & Feedstock: Negotiate and agree the location and sawdust supply for our first (15,000Tonne/Yr) commercial-scale plant, together with government investment support.

Expand existing industry partnerships and build demand, with ongoing discussions aimed at securing commitments for our sustainable bio-based chemicals.

Innovating and Protecting Our IP: Our ongoing research and collaborations are key to developing new technologies, which we're committed to protecting through intellectual property rights.

Key Information

Management Team interest

The CEO, Adrian Black, was the founder of NorthRow Ltd, a RegTech software and service provider, and still holds shares (< 10%) in the business. He no longer has any formal or active role in the business and there is no relationship or competition between Sonichem and NorthRow. Adrian is also a director of Cloudbase Ventures Ltd, a personal services company through which he has performed occasional consultancy, including his initial engagement with Sonichem. Adrian is bound by non-compete clauses with Sonichem and is not currently engaged in any work for Cloudbase Ventures.

The Commercial Director, Miranda Lindsay-Fynn, is part-time, with a contractual commitment to work at least 25 hours per week. She is also a director of The Mount 76 Bedford Gardens Ltd, which is the head lease company of her home apartment building. As an active investor, she has many other minority shareholdings in both private and publicly listed companies. None of them compete or provide services to or have a relationship with Sonichem.

Rebrand

The company has recently changed its name from Bio-Sep Limited to Sonichem Technologies Ltd. Some patents are still held under the old name.

Open an account to get access to the team members of Sonichem

Sign up

Already have an account? Log in

To comply with financial regulations, we can only show full campaign details to registered users.

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Sonichem has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 14 November 2023 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £5,995,313

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

Find out more

Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

Find out more

Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

Find out more

Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

Warning

You are following a link outside of europe.republic.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

ContinueCancel