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Fiberstar Inc., River Falls, Wis., has completed a $10.64 million debt transaction with Associated Bank, N.A., and Spell Capital Mezzanine Partners SBIC, LP. Proceeds from the capital raised will be used to quadruple Fiberstar’s production capacity, support the market introduction of its new gelling ingredient, Citri-Gel, and as working capital to support the company’s growth.
“This financing was secured because of strong third-party validation of Fiberstar’s technologies, products, business model, strategic plan, customer validation and satisfaction, leadership model and financial performance, which are a direct result of the acumen of Fiberstar’s talented innovation, production, marketing, sales, distribution and customer support teams,” says Dale Lindquist, president and CEO.
Fiberstar’s Citri-Fi ingredient is used by global food manufacturers to improve the quality, clean labeling and cost of the products into which it is incorporated. The company expects its ingredients sales to surge beginning in 2014, when Citri-Fi will no longer be under allocation.
Fiberstar’s other brands are Imulsi-Fi and Hydro-Fi.