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Unwasted

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Manufacturer of sustainable construction panels made from waste cardboard in a circular economy system

131%
 - 
Funded 23 Oct 2023
£900,004 target
£1,182,693 from 628 investors
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Business overview

Location London, United Kingdom
Social media
Website www.unwasted.world/
Sectors Energy Non-Digital B2B
Company number 11202703
Incorporation date 13 Feb 2018
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Investment summary

Type Equity
Valuation (pre-money) £50M
Equity offered 2.31%
Share price £10.28
Tax relief

EIS

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Business highlights

  • Fully operational pilot plant in Wales
  • Granted patents and global trademarks
  • Lease on 75,000m2 green energy site in Denmark
  • £40m in advance orders from European manufacturers
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.28 +
  • Direct investment min. £25,000.00 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 628
  • Discussion
  • Documents

Idea

Introduction

Unwasted has invented a way to make high quality panel boards entirely from waste cardboard without the use of any glues, resins, or toxic chemicals – making us a highly sustainable alternative to MDF and particleboard.

The circular economy product - NEVERWASTE™ - can be recycled into new panels at end of life many times over.

Demand from manufacturers is likely to soar due to challenging new EU legislation on waste, carbon emissions, and recycling.

No-one else we know of in the world can do this at large scale and in a commercially viable way.

We are ready to scale up from our pilot plant in Deeside to our first full-scale 24/7 plant in Skive, Denmark.

Planning for further plants is underway in UK, Norway, Australia, and the US.

We aim to make a significant contribution to global decarbonization, saving trees from needless harvest and helping our customers get to net zero in their supply chain.

Substantial accomplishments to date

* Deeside pilot plant operating full time and producing high quality product for validation work by customers and the large scale engineering companies that will supply equipment for the full-scale plant

* Lease signed on 75,000m2 site at the GreenLab Skive green energy industrial park in Jutland, Denmark, attracting TV and press coverage

* First advance purchase orders signed by Danish manufacturers for 21,500m3 of NEVERWASTE™ per annum for three years – a revenue stream of c.£40m

* £2.5m equity investment received from a consortium of highly successful Danish industrialists in July 2021

* £1.5m loan facility with UK impact investor Elbow Beach Capital in January 2023

* LOIs signed with parties in Norway and Australia to build, own and operate Unwasted plants

* Early stage discussions with party in US to develop proposition for multiple sites in the US

* LOI signed with major Scandinavian waste management company to supply waste feedstock to Danish plant and subsequent plants in Scandinavia

* Unwasted’s IP valued at minimum £25.52m by independent IP valuers Inngot

* Preliminary term sheet received from Danish Government funding agencies to support funding of the first full-scale plant

* Indicative Life Cycle Analysis completed by the Danish Centre of Environment Assessment at Aalborg University

* Potential new revenue stream identified from carbon credits

Monetisation strategy

Unwasted is designed to enable manufacturers of furniture, flooring, doors, kitchens and many other products to deliver on their sustainability promises to their customers. We can sell by the cubic meter directly to big manufacturers and to major wholesalers and retailers of construction materials and panel boards. It's a simple business model - NEVERWASTE™ is an 'ingredient brand' - think of 'Intel Inside' and you will appreciate the scale of the opportunity in a global market for wood-based panels of 393m cubic meters per annum.

Our product is more expensive than the MDF product it is most likely to substitute; however, NEVERWASTE™ has been designed to help our customers make big savings on carbon tax, carbon credits, and end of life costs, with the aim of getting their production processes to net zero much quicker.

We also intend to realise additional revenue by selling our unused carbon credits on the European carbon market, with the potential to expand this globally if successful.

Use of proceeds

This is an interim funding round intended to ensure the company has sufficient working capital to achieve the following:

- extend cash runway by 12 months, with the aim of raising a Series A round next year in c.£100m in equity & debt funding;

- accelerate the detailed pre-engineering work on the Skive plant design sufficient to satisfy the Series A investors and lenders;

- further strengthen the management team with the appointment of a Chief Operating Officer for Denmark, a Head of Engineering, and a Technical Sales Manager to work with our manufacturing customers on introducing NEVERWASTE to their production process;

- enable capex investment in the Deeside plant to improve process control and capacity to allow the commercial sale of NEVERWASTE panels to selected customers, with the aim of seeding the market and generating revenue ahead of the completion of the first main plant in Denmark.

Key Information

Material Debt

The Company has a loan facility of up to £1,500,000 from Elbow Beach Capital (of which £1,500,000 has been drawn down), with interest accruing at a rate of 1% above the Bank of England’s Bank Rate (subject to a maximum interest rate of 4.5%), per annum. The loan and any outstanding interest are to be repaid by June 2024. The loan is secured by way of a first charge against the Company’s assets.

Unwasted in the process of securing £1.5m of new debt which will be repayable at the end of June 2025. This new debt will be used to immediately and fully repay the Elbow Beach Captial loan in full.

The funds raised from this investment round will not be used to repay any debt obligations.

Share Class Structure

The Company has 3 classes of shares: P Shares, Ordinary Shares and A Shares. All investors in the round, including Seedrs, are receiving Ordinary Shares.

P Shares:
• Voting
• 1x senior participating preference on exit and liquidation.
•Preferential dividend of 5% pa of investment.

Ordinary shares:
• Voting
• 1x junior participating preference on exit and liquidation
• Dividend rights

A Shares:
• Non-voting
• Dividend rights
• Subject to the P Shareholders’ preference below, pro-rata capital distribution rights alongside P Shares and Ordinary Shares

Exit and liquidation preference

On any return of capital to shareholders, distributions will be paid out in the following order:
• P Shareholders will first receive their initial investment amount (plus their preferential dividend);
• Ordinary and A Shareholders will then receive an amount equal to the subscription price of their shares;
• Any surplus proceeds will then be shared pro-rata between all the P, A and Ordinary Shareholders.

Preferential dividend rights

P Shareholders are entitled to a preferential dividend of 5% per annum on the amount they invested (plus any accrued interest). If a dividend is declared, this will be paid out prior to any payment to • Ordinary and A Shareholders. If no dividends are declared, then this sum will be payable to P Shareholders as part of their senior preference prior to Ordinary and A Shareholders on any exit / winding up.

IP Licensing

The Company is in the process of negotiating a licensing agreement with Fiberlean Ltd to license the IP for the production of Micro-Fibrillated Cellulose (MFC). This material is used in the production process of Unwasted Limited’s product, Neverwaste™.

With this licensing agreement, Fiberlean Ltd will also provide services to Unwasted Limited to procure the tools, supply the software to run the equipment and instruct the team on the full production process. The facilities will be housed in the Unwasted Limited site in Denmark. This will ensure that the MFC can be produced at the volume and quality required to produce Neverwaste™.

Unwasted Limited owns the IP for all other parts of their production process.

Group Structure

Investors in this round are investing into and will become shareholders of Unwasted Limited, Company number: 11202703. This is the holding company for the group.

Unwasted Limited 100% owns a subsidiary in Denmark, called Unwasted Aps.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £50,011,172

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

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