Unified Chemicals has signed an agreement with GEM Global Yield (GEM), a private investment group, for a EUR 15 million capital commitment towards expansion of facilities and capex projects.

Under the agreement, GEM commits to provide Unified Chemicals with a share subscription facility of up to EUR 15 million for a 36-month term following the public listing of the company shares on a European Stock Exchange.

Unified Chemicals will control the timing and maximum amount of drawdown under the facility and has no minimum drawdown obligation. Concurrent to the public listing of Unified Chemicals' shares, GEM will receive warrants to purchase a maximum of 7% of the total shares of the company.

Subject to the funding becoming available, the proceeds will be used to invest in production capabilities including a soya extraction and processing facility as an integration into its current state-of-the-art soya oil refinery as well as other food and home care related lines. These investments will exponentially increase revenue, while simultaneously drop input material costs and result in new primary products catering to new markets.

"We are excited about the GEM offer and to partner with them," stated Amish Patel, Managing Director of Unified Chemicals. "The GEM commitment associated with the public listing will help us to enhance our product portfolio, take advantage in improving our economies of scale and aim to be a market leader in the region. This will be a game-changer for the company and help us to accelerate the steps towards our long-term vision."