AgCert Company Profile

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Part
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AgCert Company Profile

John Scott and Mike Otworth both held roles at XL TechGroup Inc., and currently works for Innventure. Below is information on additional startups Scott and Otworth were involved in, as well as additional milestones AgCert International had achieved.

John Scott

  • John Scott obtained a bachelor's degree in astrophysics from Michigan State University, and a PhD in physics and astrophysics from the University of Arizona.
  • Scott previously served as a research scientist at Kitt Peak National Observatory, before teaching for seven years. From 1976 to 1979, Scott was an assistant professor at the University of Maryland, and then he taught at the University of Arizona as an associate professor from 1979 to 1983.
  • Before co-founding and serving as the CEO of XL TechGroup Inc. from 1993 to 2013, Scott founded the Energy/Environmental Research Group (EERG) in 1983, and served as its chairman until he sold the company in 1986.
  • EERG created "infrared sensors for Star Wars," and also provided their expertise and technology to NASA.
  • Scott also founded Lenzar Electro-Optics in 1987, and served as its CEO until he sold the company in 1992.
  • Lenzar developed, manufactured and marketed various "optical, electronic and electro-optical products for" the medical and defense industries.
  • In 1991, Tele-Optics, Inc., which was incorporated "for the purpose of acquiring all of" Lenzar's common stocks, sold all the assets that were related to Lenzar's operations. Condor Electro-Optics, a subsidiary of the conglomerate Ogden, purchased Lenzar for $1,025,000 in cash.
  • Condor is "active in defense-related optics," and because its "technology in the defense field was similar to Lenzar's," the company thought it would be an ideal acquisition. Since Condor was also interested in the medical field and Lenzar was attempting to "modify a high-resolution film digitizer developed for aerospace applications" and hopefully adapt it for medical imaging" at the time, Condor believed this partnership would help expand their business.
  • In 2015, Scott co-founded Innventure and currently serves as the company’s chief science officer.
  • Innventure partners with fortune 100 companies and "institutional innovators" to gain access to "innovative technologies and built-in customer channels," which helps identify opportunities while decreasing inherent risks that startups face. Procter & Gamble was Innventure's first partner.

Mike Otworth

  • Mike Otworth started his career by "working as a legislative aide and committee staff member in the United States House of Representatives" after graduating with a bachelor's degree in political science and biology from Otterbein University.
  • From 1996 to 2008, Otworth served various C-level positions at XL TechGroup Inc.
  • From 2008 to 2015, Otworth served as the president and founding partner of Green Ocean Innovation. Green Ocean offered technology sourcing, strategies in innovation, "and development services to Lilly/Elanco Animal Health" that focused “on therapeutics, diagnostics and various medical devices.”
  • In 2015, Otworth founded Innventure and currently serves as the company’s CEO.
  • Since 2015, Otworth has also served as the CEO of PureCyle Technologies, which is managed by Innventure. PureCyle Technologies removes contaminants from recycled feed stock to create "virgin-like polypropylene."

AgCert International Milestones

  • AgCert had patented a "biodigestion" process, which seized and eliminated methane that was produced by farms. This earned AgCert carbon credits that it was able to "sell to large industrials struggling to meet their emissions reduction targets."
  • AgCert had activities in Ireland, Brazil, Mexico, Chile, Argentina, Canada, and the United States.
  • AgCert completed construction on 265 sites by the end of 2005, compared to eight at the end of 2004.
  • In June 2005, AgCert's IPO and listing on the London Stock Exchange raised about €91 million.
  • AgCert's EBITDA in 2005 was €16.6 million, while its operating activities' net cash flow was €15.7 million. Its net cash from investing activities was €43.6 million in 2005.
  • AgCert said its "institutional investors" helped raise cash when its shares were floated on the Alternative Investment Market of the London Stock Exchange. The company didn't specify who these "institutional investors" were, but AgCert said it would use the money raised towards its production operations.
  • In the first quarter of 2008, AgCert lost more than "75 percent of its value and filed for bankruptcy protection."
  • When AgCert delisted in 2008, each of its shares dropped to 68 pence.

AgCert International Investments

  • In 2005, AgCert negotiated with the International Finance Corporation, as well as "a group of international banks for a senior syndicated debt facility of up to €120 million."
  • In 2005, AgCert "secured advance sales contracts for CERs with future cash flows of approximately €94 million."
  • In 2005, the European Union Emission Trading Scheme was the core market for AgCert's business.
  • The International Finance Corporation's $10 million equity investment in 2005 in AgCert International helped more than "500 livestock farms in Latin America capture and dispose of methane from animal waste, generating revenue through carbon credits."
  • In 2005, AgCert announced that it "entered into one of the largest reported forward sales contracts relating to the supply of CERs, a form of Offset, and in total has contracted under forward sales contracts to deliver CERs to the value of approximately €74 million to customers." These customers included the Electricity Supply Board of Ireland, BHP Billiton, EDF, and Nuon. Governments, industrial emitters, energy traders, and funds were also going to receive AgCert's Offsets.

Research Strategy

After extensively researching multiple industry reports, news articles, and the SEC Edgar Filing Tracker, we were unable to find information related to investment details and investment returns on the startups founded by John Scott and Mike Otworth. After carefully analyzing online information, we were able to find out how long these startups existed and what activities they specialized in, which we have included in this report.

We also thoroughly read through reports and articles from organizations and news publications such as The Independent, Reuters, and The Irish Times to find additional milestones that AgCert achieved, which weren't included in the previous research. After an extensive research, we were unable to find additional investments and investment returns that were not included in the previous research. Most articles repeatedly mentioned AgCert's partnership with AES Corp., which was already mentioned in the previous research. After our initial search for additional investments did not locate any new findings, we began searching reports and articles one year at a time. For example, we scoured all the results that appeared from January 2002 to December 2002. We then continued our search for the following years until 2008, which was when AgCert delisted. This research includes all the findings we were able to locate.
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