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New funds for biomass tech player Leaf

AAP logoAAP 1/11/2016 Tom Rabe

Shares in biotech firm Leaf Resources jumped as much as eight per cent after the biotech firm announced it has raised new funds to continue development of its plant biomass-to-fuels technology.

Leaf has raised $2.35 million through the placement of 16.2 million shares to fund the commercialisation of the company's proprietary Glycell.

The technology breaks down plant biomass into renewable biobased products designed to replace commodities drawn from petroleum.

Leaf has signed a memorandum of understanding with two Malaysian Government agencies for development and use of the Glycell technology in a biochemical production facility.

Leaf says the Glycell process can produce cellulosic sugars - a feedstock for renewable biofuel - fives time cheaper than raw sugar.

Leaf managing director Ken Richards said securing the additional funding would help the company progress its first commercial-scale international project.

"The fact that the placement was priced at a modest discount underscores the level of market confidence in our Glycell technoliogy and the future of Leaf Resources," Mr Richards said.

Leaf shares were up one cent, or 5.9 per cent, to 18 cents at 1319 AEDT, having risen as high as 19 cents in early trade.

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