Vanson HaloSource, the US company which specialises in chitosan-based products, has completed a new round of financing which will help it finance the development of new supplement products.
The latest round of equity financing has raised $5 million for Vanson, exceeding the original cap of $3 million by some 67 per cent.
"Exceeding our targeted capital goal for the round is an important milestone for Vanson HaloSource," said Jerry Wetherbee, the company's president and CEO. "The overwhelming response from the investment community is strong validation of the innovative applications developed by our 63 scientists and employees."
Wetherbee said the funds would be used to expand the market share of the company's existing products and accelerate the commercialisation of new products. Vanson HaloSource has created new technology to create a range of products based on chitin/chitosan and N-halamine. The products are used in a wide range of applications such as water treatment, biomedical, home and personal care markets. The company's principal dietary supplement product is LipoSan Ultra, a chitosan-based ingredient for weight management products.
This is the first round of funding in the company since its creation through the merger of Vanson and HaloSource Corporation in May of this year. Wetherbee said he expected the new company to return to profitability by the end of the year.
The round was led by Seattle venture capital fund Alexander Hutton Venture Partners (AHVP), which invested $1.5 million. Another Seattle-based venture fund, Buerk Craig Victor (BCV), and offshore-based Britannia Holdings each added $1 million. The balance of the round came from a small group of individual investors.
Roger Victor from BCV will become a member of the Vanson HaloSource board of directors, joining AHVP's Kent Johnson who was appointed at the time of the merger.