Vancouver, British Columbia--(Newsfile Corp. - November 15, 2016) - Today's buy recommendation comes from RBC Capital Markets,
which has increased its target price on EcoSynthetix Inc. (TSX: ECO). Analyst Steve Arthur gives the company a speculative risk,
sector perform rating, increasing his target price from $2.25 to $2.75, a premium of 31% to the $2.10 price on November 9th, the
day the report was issued.
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EcoSynthetix, a renewable chemicals company, specializes in bio-based materials that are used in a wide range of products.
The company's flagship product, EcoSphere, is a bio-based latex binder made from renewable feedstock such as carbohydrates and
proteins. These binders can effectively replace petroleum binders in a wide number of industries, particularly the paper coatings
industry, where they allow colourful graphics to "stick" to glossy paper used in magazines, books and packaging. Since 2008, the
company has sold more than 100 million pounds of EcoSphere products globally.
The company recently secured its first commercial customer for DuraBind™, created to replace the traditional binder systems
which have been used for decades in the wood composites industry. This product enables manufactures of particle board, MDF, veneers
and laminates to decrease the amount of highly regulated chemicals, such as formaldehyde, used in their formulation.
An industry study puts the global wood resin market at US$15 billion annually.
Jeff MacDonald, CEO, stated: "Securing our first commercial customer for DuraBind was our key priority in 2016. Our goal is
to add more production lines and win new customers as we demonstrate the value of DuraBind."
Analyst Steve Arthur stated: "We continue to see several potential drivers of adoption, revenue and earnings growth over the
longer-term. Our confidence in the eventual success of the wood composite product remains, and we await further
announcements."
The company recorded US$2.7 million in net sales in the paper market in the quarter ended September 30, 2016, maintaining a
strong balance sheet with cash and term deposits of US$54.4 million. The shares are trading at $2.28, and with 59.3 million shares
outstanding, the company is capitalized at $135.2 million.
For more information, please visit the company's website www.ecosynthetix.com or
contact Steve Snyder at 289-245-4017 or email ssnyder@ecosynthetix.com.
Investor relations is handled by Ross Marshall of Lode Rock Advisors, who can be reached at 416-526-1563 or by email at ross.marshall@loderockadvisors.com.
For more information about RBC Capital Markets or to obtain a copy of their research report, contact your nearest RBC Capital
Markets office. Their branches are listed on their website at www.rbccm.com.
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