Lygos-FSI merger progresses

A registration statement has been filed with the US Securities & Exchange Commission (SEC) concerning the previously announced merger of two North American biotechs, Lygos and Flexible Solutions International (FSI). The two announced a definitive merger agreement in April to form “a leading sustainable specialty ingredient company for agricultural, industrial, and consumer applications”.

This followed a fully funded $160 million of growth capital investment in Lygos. Both boards have approved of the deal, although completion depends on shareholder and regulatory approval California-based Lygos has created a technology platform that uses bioengineering and data science to convert sustainable sugars into multi-functional organic acids.

FSI, which is based in Alberta, has already used this to create biodegradable, water-soluble products from thermal polyaspartate biopolymers that are themselves made from L-aspartic acid. These are used in its biodegradable water treatment products, notably WaterSavr and HeatSavr, which are used as water evaporation retardants.