CLEARAS Water Recovery Raises Funds
2019-03-04
MISSOULA, MT, Montcalm Capital is investing in CLEARAS Water Recovery, Inc. as part of the Montcalm Capital Fund I.
Montcalm Capital, a new economy investment firm that aims to generate value and well-being for people and the planet through innovative capital solutions, is investing in CLEARAS Water Recovery, Inc. as part of the Montcalm Capital Fund I.
CLEARAS is pioneering a fresh solution to a persistent environmental water challenge. Nutrient pollution in wastewater is a costly and serious environmental problem for wastewater utilities and industrial waste producers who must meet stringent government discharge standards. CLEARAS' proprietary technology recovers nutrients, namely phosphorus and nitrogen from wastewater using algae, and then converts the algae into bioplastics that can serve as raw materials for consumer products, such as sneakers.
"Private market investment options, especially for debt, have traditionally been quite limited. We are creating a new asset with the Montcalm Capital Fund to offer a superior alternative to venture capital. Our companies provide regular cash flows, diversification to investor portfolios and risk-adjusted returns," said Holly Ruxin, Founder and CEO of Montcalm Capital. "We selected CLEARAS as an investment because they offer an excellent financial opportunity with solid current revenues and a verified pipeline of potential customers. Additionally, they deliver a clear impact component for investors wanting more than just a financial return."
The unique structure of the investment opportunity is trailblazing a new path for investing. Investors pay no carry, no management fees and low administration fees of 0.5%, unlike typical private equity and venture funds. Additionally, investors enjoy a steady annual cash flow, based on the company's performance, until full repayment of the loan is achieved within seven years.
CLEARAS benefits from this investment as they can access debt at reasonable rates while maintaining control over the growth and development of their company without equity dilution.
"Holly Ruxin and the Montcalm team have pioneered a capital and finance model that deeply aligns with our sustainable approach to wastewater treatment and management. We evaluated traditional sources of capital to propel the next phase of our growth and to no surprise it was very expensive capital," said CLEARAS CEO Jordan Lind. "The CLEARAS ABNR solution is an innovative, timely and unique offering, which aligns perfectly with the heightened importance and interest in more sustainable industrial solutions. Demand for ABNR technology continues to grow both domestically and internationally as wastewater nutrient recovery is a top priority for many municipalities and industries."
Montcalm's newly launched flexible capital fund, Montcalm Capital Fund I, will invest up to $10 million in CLEARAS in the form of senior notes, and provide a wide range of investors access to private market deals.
Montcalm's goal is to allow more people to invest in private market deals with favorable terms for both the company and the investors while healing our planet.
About Montcalm Capital
Montcalm Capital is a new economy investment firm that aims to generate value and well-being for people and the planet through innovative capital solutions. Montcalm finds and funds inspiring companies that are delivering positive social or environmental impacts. Through a new investment paradigm, Montcalm is transforming the flow of capital to provide prosperity for all stakeholders.
About CLEARAS
CLEARAS Water Recovery is the leading provider of advanced, chemical-free and biologically-based water treatment technologies for municipal and industrial point source dischargers. Our proprietary technology leverages a zero-waste process to effectively remove harmful nutrients from wastewater and convert this waste to value to maximize cost recovery for our customers.
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