Mainebiz

W W W. M A I N E B I Z . B I Z 23 A P R I L 5 , 2 0 2 1 F O C U S B A N K I N G / F I N A N C E / I N S U R A N C E Hello, plan B With a plan all set to manufacture loose insulation this year, phasing in batt and board insulation over the next year, O'Malia and Henry traveled to Europe early last year to finalize an investment deal based on New Markets Tax Credits. e trip was the culmination of a buildup that began in 2016 when the pair decided to figure out a way to produce wood insulation, popular in Europe, but not made in the U.S. O'Malia, an architect, and Henry, a chemistry professor, felt the time was right for the sustainable and environ- ment-friendly product. e project picked up steam in 2017 when German company Homanit Building Materials offered a bargain price on the production equipment that would be $25 million new. With a deal set for the equipment, they bought the Madison mill for $1.4 million in 2019. All that was left in February 2020 was to finalize the financing. But within days of their return home, travel to Europe shut down. "We had the credit allocated, and it was a very promising approach, but without our key investor we couldn't close that deal," O'Malia says. e tax credits have a shelf life, so they needed a new plan. "We had to think completely differently about how we get this project at this scale up and running," he says. While the FAME bond had been an option low on the list, it now moved up. It turned out to be a brilliant move. "It's a really good deal for us," O'Malia says. "It puts us in so much a better position than we were." e bonding, for which FAME acts as a conduit, requires all the financing be determined, so they had to rejigger the rollout and get rid of the phases of development. ey also had to raise $30 million in equity. As a result, "We've found investors who've brought a lot to our project that we didn't have before," O'Malia says. Before they hadn't looked for them, because with the initial plan they didn't need them. Since 1989 Local Decisions Be Budget! 800.924.4229 www.bdtme.com Problems Solved. Budget Document Technology is an industry leader in providing digital solutions for document creation, production, and distribution. • Multi-functional Color & B&W Copiers • Printers & Scanners • Postage & Mailing Equipment • Software & Network Solutions • Managed Print Services Helping Maine get business done! " FAME can often help fi nance projects that traditional lenders cannot. This helps keep companies with quality jobs in Maine." Andrew D.R. Nichols Chief Executive Offi cer ELMET TECHNOLOGIES Helping Maine Businesses Succeed Since 1983 1-800-228-3734 • FAMEmaine.com 6-Time Winner, Best Places to Work in Maine (2015–2020) We have a much better project now than we had before. It's a bigger vehicle, it's a lot more expensive, but it's a better fit. — Matt O'Malia GO Lab C O N T I N U E D O N F O L L OW I N G PA G E »

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