SAN DIEGO and PORTLAND, MAINE —PhytoSmart Inc., a producer of algae-based pet supplements, and Cellana Inc., a developer of algae-based bioproducts, recently signed a merger agreement. PhytoSmart will become a wholly owned subsidiary of Cellana upon closing of the merger. 

Based in Portland, PhytoSmart has a history of innovation in heterotrophic algae production using its patented Sterile Plastic Algal Growth System (SPAGS) production technology to optimize the commercial production of Omega-3-producing algae strains. Through the use of its innovative production, PhytoSmart launched its first commercial products — whole algae pet supplements containing Omega 3s and DHA.

PhytoSmart’s pet supplements include ZipZyme KRUMBLE™, a dried Omega 3 supplement that can be sprinkled on top a pet’s meal, and ZipZyme™ Paste, a paste version of the Omega 3 supplement.

San Diego-based Cellana works uses a patented ALDUO™ photosynthetic production technology to grow diverse, non-GMO algae at commercially sustainable levels. According to Cellana, since 2006, it has successfully produced over 30,000 kilograms (about 66,139 lbs) of algae biomass using its hybrid technology of large-scale photobioreactors paired with large open pods. Through this technology, Cellana produces Omega 3 and EPA algae strains outdoors at an industrial scale in multiple locations throughout the United States.

Under the merger, PhytoSmart and Cellana will collaborate on expanding the number of different product offerings within PhytoSmart’s line of pet supplements. Once it’s established in the pet market, the combined company plans to produce supplements and functional food product offerings for humans.

Deena Sisitsky, chief executive officer of PhytoSmart, will join the Cellana Board of Directors and will lead the Consumer Products activities for the combined company under the PhytoSmart brand name.

“We are thrilled to join forces with Cellana, whose complementary production technology and multi-product business model will allow us to broaden our portfolio and reach new markets,” Sisitsky said. “The combination of PhytoSmart’s specialized focus on DHA-producing algae for high-value applications using small, inexpensive, modular and scalable production technology with Cellana’s demonstrated strength in EPA-producing algae using large-scale production technology for both high-value and high-volume products positions us in the vanguard of algae biotechnology and algae-based nutritional products with global ambition and capabilities.”

“The total addressable market for pet supplements alone is over $2 billion globally and growing rapidly, and the market for Omega 3 supplements for humans is more than $8 billion,” said Martin Sabarsky, CEO of Cellana. “Our combined company’s ability to deliver vegan, sustainable, whole algae, non-GMO, non-fish-based Omega 3 supplements represent a potential game-changer in the pet and human supplement sectors alone. PhytoSmart’s expertise in fermentation-based production of high-value, whole-algae products to build what we expect to be a highly profitable company in the near term significantly augments and enhances Cellana’s ability to attract new business-to-business partners and expand to large-scale commercial production as a subsequent step.”

By leveraging both companies’ respective strengths and capabilities, the combined company aims to accelerate the development of sustainable, nutrient-dense and energy efficient products that meet increasing global demand for plant-based products. According to the companies, the merger creates a unique opportunity to redefine the landscape of sustainable products across nutrition, energy and agriculture. 

“This merger represents a perfect alignment of our two companies’ respective strengths,” Sabarsky said. “Together, we’ll be able to integrate our technologies to increase consumer product offerings, scale up production, and bring innovative algae-based solutions across diverse sectors, from the world’s most sustainable pet and human nutritional supplements to large-scale plant-based proteins for aquaculture, animal feed and human food, to Omega 3 pharmaceutical ingredients, to clean energy.”

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