Capture6 Project Monarch
Capture6 is a climate technology company addressing both water scarcity and climate change all around the world. Its technology converts high-salinity brine wastewater into freshwater, carbon-sequestering materials, and other useful products.
Project Monarch is a collaboration between Capture6 and the Palmdale Water District (PWD) in California. The project will integrate Capture6's technology into PWD’s new Advanced Water Purification Facility, helping PWD avoid traditional evaporation ponds, save money, recover extra fresh water that would otherwise be lost, and permanently remove CO2 from the atmosphere. Monarch Phase I, already underway, is a demonstration facility supported by the California Energy Commission. Venn's PRI will help advance the commercial-scale buildout of Monarch Phase II.
Venn’s PRI also is helping address an important financing gap that many new climate technologies face when building a first-of-a-kind, at-scale facility. Given the risks inherent in such projects, market-rate investors are often hesitant to invest, and philanthropists can help. Venn's patient, below-market capital will help Capture6 demonstrate its technology at commercial scale, reduce risk for future projects, and position the company to attract conventional financing as it grows.
Status Quo: Brine Evaporation Ponds
Solution: Capture6 Project Monarch
Future: Recovered Water & Captured Carbon
Recipient Name: Capture6 Corp / Capture6 Monarch LLC
Corporate Form: Delaware Public Benefit Corp. / LLC
Investment Sought: $2,000,000 - $5,000,000
Amount Raised to Date: $2,001,000
Overview of Investment Terms:
10-Year, Unsecured Convertible Loan
Accrues Simple Interest at 2% Annually
Repayment / Conversion
Years 1 & 2: Annual Interest-only payments
Years 3-10: Annual payment of interest for current year, plus 12.5% of the principal
Upon reaching “Final Investment Decision” for Project Monarch Phase 2, all outstanding principal and interest converts into preferred equity in the project entity at the same price as Capture6 common.
Venn’s equity in project entity will carry preferences for redemption triggered by Capture6 capitalization milestones and project performance. Redemption amount grows with time after PRI conversion.
