DAdvance Agarwood raises US$436,000 via ECF through Fundnel

• Collaborating with Huawei in Temerloh, Pahang
• Tropical Extracts has exclusive right as distributor in Europe

DAdvance Agarwood Solutions Sdn Bhd (DAAS), a Malaysian agarwood biotech company, had successfully raised US$ 436,000 (RM1.9 million) via an equity crowdfunding (ECF) campaign through Fundnel, an ECF platform operator registered with the Securities Commission Malaysia. 

“In line with our vision, we are constantly striving to perfect our vaccine tech for higher resin yields by setting a new standard in the synthesis period from 18 months to 24 months and to further elevate Malaysia’s standing as an agarwood producer.

"This is why we strongly believe that this ECF is not only a fundraiser for DAAS but also something that will benefit the local plantations and the industry as a whole. We would also like to thank Fundnel, Entrevestor, and Elevate for their support to make this ECF campaign a success,” said David Liew (pic, above), DAAS founder.
 
According to DAAS, the funds raised will be used for research, development, and manufacturing of its in-house inoculation technology, as well as fulfilling working capital, and facilitating marketing activities.

DAAS said it is collaborating with several Universities in Malaysia to improve the agarwood oil distillation process and research and development, on agarwood skin care products.

Agarwood, — also known as aloeswood, eaglewood or gharuwood — is highly sought after for its fragrant dark resinous wood.

In the Middle East and most Muslim countries, it is known as Oud while in Japan it is known as Jinkō. 

DAAS said it aimed at accelerating the stagnant agarwood industry in Malaysia through its joint venture business model.

Currently, the company has successfully assisted nearly 30 agarwood plantation owners with an exit plan, it claimed.

Using its all-natural inoculation vaccine — DAdvance Agritech Vaccine (DATV) — DAAS said it planned to help local agarwood plantation owners increase resin yield (of more than 10,000 homegrown trees) to 85% through its joint venture business model.

It is projected to accumulate approximately 50,000 agarwood trees by the end of 2022 with an estimated value of US$341,000 (RM150 million).

DAAS said the funds will also be used for the expansion of the factory in Ayer Keroh, Malacca, by increasing the number of distillation machines from six to 30, which will bring a total output capacity to 30 litres of agarwood oil per month.

The deployment of these distillation machines is projected to increase the oil output by 500%, which would have a knock-on effect on the company’s overall revenue. 

DAAS is also currently exploring the feasibility of installing solar power in the Ayer Keroh factory.  

Meanwhile, DAAS has inked a memorandum of understanding with Tropical Extracts Sdn. Bhd. for granting an exclusive right as distributor of the company in European countries.

Tropical Extracts is expected to grow its sales from 30kg of agarwood oil in 2023 to 100kg in 2025, and is projected to double the latter figure by 2030.