Cereplast Inc. (El Segundo, CA) recently agreed to privately sell stock and warrants for about $12 million to several institutional investors and signed a distribution agreement with ColorTec to supply its bio-based compostable and sustainable plastics to the Southern Italian and Slovenian markets.
Italian distribution represents an interesting opportunity for Cereplast in light of Italy's plastic bag ban that went into effect in early 2011. Cereplast will provide its Compostable 3000 film grade for use in ColorTec's masterbatch process for making shopping and garbage bags. Cereplast says the 3000 grade is designed for strong puncture resistance, toughness, and processing on existing blown film production lines.
Cereplast says ColorTec has a dominant position in Southern Italy, working closely with municipalities that must conform to the Italy-wide ban on certain types of plastic bags that allows bags made of compostable material. Italy's consumption of plastic bags has been reported as being about 330 per person annually....