MADISON — GO Lab Inc. today announced it will sell up to $85 million of tax exempt bonds to be issued by the Finance Authority of Maine. The bonds are expected to be priced in early December with the transaction expected to close about 10 days later.

GO Lab Madison LLC, a subsidiary of GO Lab Inc. of Belfast, will use proceeds from the bond sale — in combination with equity, government grants and loans, and the NMTC financing — to renovate the former UPM paper mill in Madison, where it will produce three wood fiber insulation products for the residential and light commercial construction markets under the brand name TimberHP.

The Series A equity fundraising round will close with the bond sale, along with a New Market Tax Credit investment. The NMTC program provides tax credits to investors in exchange for private investments in struggling local economies.

GO Lab also announced it has selected Cianbro to be the lead contractor on the Madison buildout.

“We are thrilled to have Cianbro as our partner in bringing the Madison mill back to life,” GO Lab President Joshua Henry said in a Nov. 24 press release. “Cianbro built this facility and has done many subsequent upgrades over the years. This mill is a testament to the quality of Cianbro’s work and we’re grateful that their experience and craftsmanship will guide creation of the first wood fiber insulation manufacturing facility in North America.”

Under GO Lab’s current production timeline, the company expects to be producing TimberHP loose fill insulation in the first quarter of 2023, followed by wood fiber batt and board products in Q2 and Q3 of 2023, respectively.

The offering statement and investor presentation for the bond sale are now live on the website of MuniOS, the official statement distributor for municipal bond offerings. Citigroup Global Markets is serving as the underwriter in the sale, with Pierce Atwood LLP acting as GO Lab’s legal counsel.

The bonds have been designated as “‘Green Bonds” as defined in the International Capital Market Association 2021 Green Bond Principles — based on the opinion letter provided by Vigeo Eiris, an affiliate of Moody’s Investors Service.

GO Lab qualifies for this type of solid waste and recycling bond financing because the company will use residual softwood chips — the waste stream from timber harvesting and saw milling — to make wood fiber insulation for the residential and light commercial construction markets. The bonds are expected to be sold to institutional investors that invest in these types of tax-exempt bonds.

GO Lab Inc. was founded in 2017 by Henry and Matthew O’Malia in Belfast to develop and manufacture wood fiber insulation solutions for the residential and light-commercial construction markets.

According to the press release, wood fiber board, batt, and loose fill insulation products “are an easy drop-in replacement for other insulations on the market.  Along with being high-performing, wood fiber insulation products are easy and safe to install, renewable, recyclable, nontoxic, and will have a negative carbon footprint.”