The investment in environmentally sustainable technology will help thousands more patients with burned or damaged skin tissue
Reykjavik, Iceland, Billund, Denmark and Arlington, Virginia — August 1, 2022 — Kerecis® today announced that it completed its $100 million Series D financing that was led by KIRKBI, the family holding and investment company behind the LEGO Group. Kerecis is the company pioneering the use of sustainably sourced fish skin and fatty acids in cellular therapy and tissue regeneration and protection globally. The funding round was supported by several existing shareholders, including Silicon Valley’s Emerson Collective and the Icelandic pension funds BRU and LSV. The funding round also included conversion of existing convertible debt to equity and new and extended debt facilities.
The funding round will accelerate the company’s growth and development of the next generations of its patented medical-fish-skin products sourced from sustainable fishing grounds near the Arctic Circle. KIRKBI, a first-time investor in Kerecis, invested $40 million in cash in exchange for newly issued Kerecis shares. Co-investors contributed an additional $20 million in cash for newly issued shares; $10 million of existing convertible promissory notes were converted into equity; and Silicon Valley Bank provided an extension and increase of the company´s existing revolving credit facility to $30 million. Following the investment round, the valuation of Kerecis is US$620 million.
“Kerecis is a highly innovative company that has built a successful business transforming waste material into unique medical products,” said Niklas Sjöblom, Senior Director, Long-Term Equity, KIRKBI. “We are particularly inspired by the company’s approach to sustainability, as we are responsible investors and owners. We are excited to support the company’s continued growth and strategic objectives to improve patient outcomes”.
“This funding and new partnership with KIRKBI is a great step forward for Kerecis, and we are truly motivated by the investment KIRKBI and the other participants are making,” said Fertram Sigurjonsson, Founder and CEO of Kerecis. “As we continue to grow, we will be able to help thousands more patients around the world with our sustainably sourced products. It is our mission to become the world leader in tissue regeneration by sustainably harnessing nature’s own remedies,” he added.
Kerecis’s year-over-year growth has been exceptional in recent years, with revenues doubling annually. The company’s revenue in calendar year 2021 was $35 million, and this year’s revenue is expected to be more than twice that. The company’s medical-fish-skin products have proven crucial in improving patients’ well-being and quality of life. Revenue derives mainly from sales in three distinct market segments: private offices and wound centers that treat diabetic and other chronic wounds, burn centers, and hospital operating rooms. Sales across all three segments have increased over the past year with new product offerings, increased demand, and strategic sales efforts.
