By Brian Brus
Courtesy of The Journal Record
STILLWATER – Associated Material Processing LLC has received a $400,000 investment for the development of a material that removes problem elements from industrial waste streams and drinking water.
The Stillwater-based company’s sorbent chemical polymer, which has a patent pending, is an example of a solid product concept that needs more market exposure, said Scott Meacham, president and chief executive of the nonprofit i2E Inc. business support agency.
“Some business ideas have more of a market risk; some have more of a product risk,” Meacham said, adding that the latest deal follows a $1.135 million investment in 2013 led by i2E. “This clearly has a broad market impact.
“You hear so much about arsenic problems in groundwater in domestic markets and around the world,” he said. “This product works so much better than anything else that’s out there, bonding to heavy metals,” he said. “If they can get it into a granular form, then it has huge potential.”
The i2E organized the investment through a special fund established as part of the Accelerate Oklahoma! Program, a federal States Small Business Credit Initiative under the U.S. Treasury Department. The fund is designed to provide critical capital and co-investment opportunities for Oklahoma entrepreneurs at specific stages of their companies’ life cycles. Investment terms are typically convertible debt or preferred equity and involve a rigorous due-diligence process, i2E officials said.
Cowboy Technologies also participated in the bridge round. Cowboy Technologies is a for-profit company created out of Oklahoma State University to help commercialize technology developed at the state school.
Joel Roark, AMP’s chief executive officer, said his company will use the proceeds to fund product development, streamline operations and boost sales growth though product distribution.
“We’re very appreciative of the investment and continued support of our original stakeholders,” AMP Vice President of Development Fred Schiele said. “This will take us to the next stage of qualification for several of our customers.”
The company, which was founded in 2011, also learned this month it is the recipient of a $15,000 grant from the National Energy Solutions Institute-Smart Energy Source Association. The award was for AMP’s work in developing improved containment capabilities for coal combustion residue.