Locus FS Secures $40 Million in Strategic Investment to Accelerate Biomanufacturing & Bio-Based Additive Growth

Recent funding round, led by Hudson Bay Capital, fuels expanded capacity and commercialization of formulated intermediates across oil & gas, mining, agriculture and industrial & CPG markets

SOLON, Ohio, Dec. 10, 2025 /PRNewswire/ -- Locus Fermentation Solutions (Locus FS), a U.S.-based biotechnology company producing performance-enhancing bio-based additives, today announced the close of an oversubscribed $20 million investment in a convertible note round at an equity valuation of $100M led by Hudson Bay Capital, with the opportunity to up-size the round. The capital will be used to expand the company's domestic biomanufacturing capacity, accelerate commercial activities and product development across four strategic sectors: oil & gas, mining, agriculture, and industrial/CPG formulations. 

This latest round brings total funding this year to over $40 million in growth capital and includes participation from company leadership.

"This funding signals strong confidence in the future of Locus Fermentation Solutions," said John Uhran, CEO of Locus FS. "Building on strong double-digit growth, including the acquisition of over 50 new customers in 2025, we have the team, technology and the financial momentum to scale what we do best—formulate and manufacture better performing, cleaner and more effective alternatives to traditional chemistry using our proprietary biomanufacturing platforms and glycolipid molecules."

Investing in the Future of USA-Made, Bio-based Chemistry

With increasing emphasis on domestic manufacturing and supply chain resiliency, Locus FS is uniquely positioned as the only U.S. producer of glycolipid biosurfactants with TSCA approval for commercial-scale volumes. These non-GMO, palm-free bio-based ingredients deliver powerful surface activity and improved performance, with dramatically lower toxicity and greater biodegradability than conventional surfactants, making them ideal for replacing petrochemical-based formulations across multiple industries.

The newly secured funds will support:

• Expansion of U.S. fermentation and downstream processing capacity
• Commercial growth and customer acquisition across key markets
• Acceleration of commercialization efforts and new product launches
• Leveraging the company's deep patent portfolio to drive innovation
• Deployment of digital tools and analytics to optimize business performance

"We're seeing a global push toward performance-based sustainability in formulations—and Locus FS is delivering exactly that," said Matt Russell at Hudson Bay Capital. "The company's glycolipids and microbials aren't just 'green'—they're engineered to outperform conventional options and are already being used successfully at scale."

Positioned for Scaled Impact

Locus FS has already achieved strong commercial traction and technical validation across its focus markets:

• In Oil & Gas, the company's glycolipid-enhanced treatments have enabled operators to substantially boost production while complying with strict environmental regulations.
• In Mining, Locus biosurfactants deliver improved metal and mineral recovery while increasing efficiency in leaching and flotation operations.
• In Agriculture, the company's biologicals & glycolipid-based treatments consistently boost crop yields and farmer ROI, with statistically significant results in eight top-growing crops.
• In industrial and CPG formulations, Locus glycolipids help formulators reduce surfactant load and enhance performance while meeting clean-label and ESG targets.

With the addition of this new funding, Locus FS will continue building on its market leadership by launching new products, expanding distribution and partnering with companies looking to replace traditional chemistries with bio-based, high-performance alternatives. For more information, visit Locusfs.com.

About Locus Fermentation Solutions (Locus FS)
Locus Fermentation Solutions (Locus FS) is a USA-based biotechnology company delivering high-performance specialty chemical formulations enhanced with novel glycolipids and microbial blends. Built on deep microbial expertise, the company develops bio-based additives that act as powerful formulation amplifiers—pushing performance beyond the limits of traditional chemistry across industrial, CPG, energy, mining and agricultural applications. With a proprietary biomanufacturing platform and science-first approach, Locus FS helps customers solve complex formulation challenges and accelerate the transition to smarter, more sustainable solutions. Visit Locusfs.com to learn more.

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SOURCE Locus Fermentation Solutions