TULSA, OKLA.—Totally Green, Inc., a provider of organic food processing systems and compostable packaging alternatives, has partnered with Toronto-based York Plains Investment Corp. for a comprehensive program that involves both financing and a new marketing model for Totally Green’s ORCA Green Machine.
York Plains has agreed to provide $5 million of equity financing for a 50 percent interest in Totally Green. The proceeds will be used to pay down Totally Green’s existing line of credit, and fund the general, administrative and working capital expenditures required to support the Totally Green’s growth objectives. York Plains has also agreed to provide up to $15 million in equipment financing for the roll out of Totally Green’s new service program.
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.
“The principals of York Plains—Mark Silver, Shawn Dym and Jason Drummond—have specialized in growing early stage businesses with remarkable success over the last 15 years,” said Rob Phillips, CEO of Totally Green. “Assisting in management and offering direction, they and their team have taken consumer-oriented companies similar to ours—such as Direct Energy, Universal Energy and National Home Services—from little or no sales to revenues of as much as $1 billion. The rate of growth of many of their ventures has been dramatic, and their largest success, Direct Energy, sold for nearly $1 billion. All together, they are an ideal partner to help take our commercial rollout of our ORCA Green Machine to the next level.”
Machine Makes ‘Compost Tea’
Totally Green’s ORCA Green Machine digests up to 2,400 pounds of food waste daily, turning it 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.
Together, the partners have already introduced and tested a new North American business service model that involves placing ORCA machines under service contracts, rather than outright sale. 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. This significantly reduces and in some cases replaces waste hauling costs for the client while generating a recurring revenue stream for Totally Green.
“Our partnership with Totally Green allows us to leverage our experience and existing strong ties to the commercial services business,” said Shawn Dym, managing director at York Plains. “This includes support for Totally Green’s transition from a sales to a service model, which we are confident will be highly successful given similar programs we advanced with past business ventures and the successful pilot of the ORCA Green machine in Toronto.”
Nate Baker, Totally Green’s president, commented, “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.”
Go to Totally Green.