Axiom Completes Financing for PaperNuts Development, Expansion
Print this Article | Send to Colleague
Axiom Corp., St. Catharines, Ont., USA, reports that it has closed agreements to secure new financing totaling $575,000. The funds will be used to further develop and expand production of the companies packaging PaperNuts.
Tyler Pearson, CEO of PaperNuts, sis that "we are extremely pleased to have secured this latest round of new growth capital to strengthen our operating position and accelerate completion of final design improvements and modifications for the next generation of PaperNuts proprietary packaging technology."
According to terms of the securities purchase agreements (SPA) and convertible promissory notes (notes), the company agreed to issue a principal amount totaling $612,250 to two investors for a total purchase price of $575,000. The notes, which are convertible into common shares of the company, earn interest at an annual rate equal to 10% and provide for a maturity date of Oct. 5, 2016.
The funding schedule calls for $250,000 at the time of closing of the SPA and notes (closed), $75,000 upon the filing of a registration statement with the Securities and Exchange Commission (SEC), $50,000 upon receipt of the first round of comments from the SEC regarding the registrations statement, $100,000 upon the effectiveness of the registration statement, and at the company's option, a final $100,000 thirty days after the registration statement becomes effective.
Pearson noted that "we look forward to launching PaperNuts sales and marketing programs in the near future and ultimately fulfilling our mission to provide the packaging industry with a sustainable and cost-effective alternative to environmentally harmful packaging solutions such as polystyrene peanuts and other plastic-based protective packaging products. The commercial potential for PaperNuts products and technologies is enormous."
PaperNuts owns proprietary technology and intellectual property originally developed in Finland that provides an environmentally friendly alternative to traditional protective packaging. PaperNuts delivers a loose-fill packaging solution that competes directly with polystyrene foam plastic "peanut" fillers, bubble wrap, air pillows, crumpled paper, foam-in-place, and corn starch peanut products.
PaperNuts are a cost-effective green alternative to competitive fillers, made from 100% recycled paper that was destined for landfill, and are both biodegradable and fully recyclable after use. PaperNuts also provide superior product protection, are clean and easy to handle, non-polluting, and low in particulates, the company notes.
The "PaperNuts Converter" machine used to create PaperNuts requires only 10 sq. ft. of floor space to operate and gives small, medium, and large scale businesses the capability to produce on-demand on-site packaging that reduces the shipping and storage costs associated with competitive products.
More information is available online.
