Ynsect, a French company specializing in insect-based proteins and natural fertilizers and exports worldwide, has filed a safeguard plan as it failed to find enough financing for expansion plans but said it was hopeful to find cash from some investors, reported Reuters.
Safeguarding facilitates the reorganization of the company to allow economic activity to continue, jobs to be maintained and debts to be paid. According to a report at iGrow News, the court-supervised protection is expected to give Ynsect the necessary time to secure fresh capital, helping the company achieve production levels that will drive profitability and enable it to continue developing its innovative insect farming solutions.
Last year, the company refocused its strategy to markets like pet food, shuttered a production plant and cut jobs after raising €160 million (US$176 million) from investors. At the time, investors asked the company to focus on pet food, human food and plants and move away from breeding insects for use in animal feed.
"Ynsect is in advanced discussions with a number of investors wishing to support and finance this launch phase of its industrial process," the company said in a statement to Reuters. "The delays inherent in carrying out this fundraising have, however, proven incompatible with the financial pressure suffered by the company."
In January, Ynsect was granted authorization by the Association of American Feed Control Officials (AAFCO) to use defatted mealworm proteins in dog food. At that time, the company said it was the first time mealworm-based ingredients for pet food had been authorized for use in the U.S.
