Thank you for investing in MxG Fiber. We are honored to have you along for this journey and appreciate that you have chosen to support our growing company. I will be providing regular updates on WeFunder to keep you posted on relevant news.
While take-out food packaging is our core business and an ideal application for the Miscanthus fibers harvested from thousands of acres in the United States, MxG Fiber has recently seen significant success from additional revenue streams.
We’re pleased to announce that we have signed a five-year off-take agreement to use Miscanthus fibers to produce high-end horse bedding, a deal representing $4 million in annual revenue. We subsequently finalized a $1.3 million raise from one of our existing investors to complete the construction of the horse bedding manufacturing facility to support that agreement.
The production process is relatively simple. We grind the Miscanthus to the proper size, remove the dust, and bag the material under compression for shipment to our customer. Production will begin in Corning, AR, at the end of July and reach full capacity no later than September. This opportunity came to us unexpectedly, and we have not even included this deal in the valuation cap.
In addition, MxG Fiber continues to explore additional avenues for adjacent expansion of our thermoformed fiber business. We recently fielded two new requests for samples and pricing, one from a consumer products company and the other from a large distributor of foodservice products.
We’re excited about the many applications of Miscanthus fibers, especially given that this crop has so many benefits: It’s a perennial crop that grows back every year for more than 20 years, at 7-15 tons per acre. It actively helps with climate change by sequestering carbon in the soil where it’s planted. It grows in marginal and poor soils that would otherwise sit idle, helping to strengthen rural economies and protecting land currently used to grow food.
The future looks bright for MxG Fiber! We’re glad you’ll be a part of it.