Notice Regarding Acquisition of New Shares of GSM Issued through Third-Party Allotment and Transformation of GSM into a Consolidated Subsidiary

Tokyo, Japan—DIC Corporation announced today that it acquired new shares of Green Science Materials, Inc. (GSM), issued through a third-party allotment on January 13, 2023, to increase its capital. DIC’s stake in GSM now exceeds 50%, as a result of which the company has become a consolidated subsidiary.

Biotech start-up GSM is the first company in the world to successfully commercialize SACRAN™, a macromolecular polysaccharide extracted from Suizenji nori (Aphanothece sacrum), a freshwater blue-green algae indigenous to Japan. They are capitalizing on the outstanding moisture-retention capacity, anti-inflammatory properties and skin barrier functions of SACRAN™ to apply it a wide range of skincare products. They are also actively engaged in conservation efforts in and around the Kogane River in Asakura, Fukuoka Prefecture, the only place where the algae grows naturally.

In 2021, DIC and GSM entered into a capital and business alliance aimed at ensuring stable supply of SACRAN™, as well as developing applications for this polysaccharide. In August 2022, the two partners succeeded in establishing the world’s first indoor mass cultivation technology* and commenced trial production of Suizenji nori. Encouraged by the alliance’s steady progress, DIC resolved to transform GSM, which is expected to grow significantly in its algae-derived functional materials business, into a consolidated subsidiary, making it a member of the DIC Group to facilitate the strengthening of collaboration.
Specific plans include leveraging the DIC Group’s synergies and global sales network to promote Suizenji nori and SACRAN™ internationally as unique-to-Japan raw materials for cosmetics, as well as to promote the development of new applications for both. In addition, the companies will further apply Suizenji nori cultivation technologies and related research achievements to bolster Kogane River conservation initiatives, as well as to utilize the outdoor Suizenji nori farm GSM has set up in Mashiki, Kumamoto Prefecture.

The DIC Group continues to reinforce its bio-based materials businesses in the healthcare field in order to achieve contribution to the "Quality of Life (QOL)" society set forth in its DIC Vision 2030 long-term management plan. We will continue to provide value-added products by utilizing algae-derived functional materials.

Name：Green Science Materials, Inc.
Representative：Shinichiro Kaneko, Representative Director
Date established：April 2007
Location：12-25, Nagamine Higashi 4-chome, Higashi-ku, Kumamoto
Description of business：Provision of products and services that capitalize on university research achievements and environmental technologies
URL：https://www.gsmi.co.jp/（Japanese only）

* World’s first indoor artificial cultivation technology specifically for Suizenji nori (as of August 2022, based on DIC research).

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・Suizenji Nori Blue-Green Algae New Key Indoor Cultivation Tech Unlocks Stable, Scalable Algaculture for Delivering SACRAN™ Moisture-Retention Effect for More Ethical and More Sustainable Cosmetics and Skincare Products　(Aug. 4, 2022)

・Sustainable Skincare from Suizenji Nori Blue-Green Algae—DIC & Green Science Materials Leverage SACRAN™ Moisture-Retention Effects（Mar. 25, 2021）