Greentech Lead America: Totally Green, a provider of
organic food processing systems and compostable packaging alternatives, has
entered in to a strategic partnership with Toronto-based York Plains
Investment. The partnership intends to create a comprehensive program that
involves both financing and a new marketing model for Totally Green’s ORCA
Green Machine.
Totally Green’s ORCA Green Machine converts up to 2,400
pounds of food waste daily into a nutrient-rich liquid similar to ‘compost
tea.’ The ORCA provides commercial kitchens and food processing facilities with
an economical and environmentally-friendly alternative to carting waste to a
landfill.
Under the terms of the agreement, York Plains will buy 50
percent equities from Totally Green’s for $5 million. York Plains has also
agreed to provide up to $15 million in equipment financing for the roll out of
the Company’s new service program.
The proceeds will be used to pay down the Company’s
existing line of credit, and fund the general, administrative and working
capital expenditures required to support the Company’s growth objectives.
In addition to the funding, the principals of York Plains
bring to Totally Green extensive experience in financing and building
businesses that are strongly in line with Totally Green’s product
offerings.
Together, the partners have already introduced and tested
a new North American business service model that involves placing ORCA machines
under service contracts. As part of the new pilot program, Totally Green
installs an ORCA machine at no up-front cost to the client and provides service
throughout the contract term.
“We believe that marketing the ORCA Technology under
our new service business model will rapidly expand our footprint of ORCA
machines and will substantially enhance our recurring revenue stream and
profitability,” said Nate Baker, president, Totally Green.