PAYSON, UT (BRAIN)—Advanced Composite Solutions (ACS), parent company of Delta 7 Sports, has raised $1.5 million in financing from a small group of private investors.
With new equity behind it, ACS is moving forward to aggressively support its efforts in the cycling industry. Bikes are only part of the picture for ACS, but the company is focusing on efforts in the cycling industry to prove its IsoTruss technology is commercially viable.
Its exclusive worldwide licensing agreement with Brigham Young University gives ACS the rights to use the IsoTruss technology and design in a variety of applications.
That technology is what attracted new ACS chief executive officer Jay Mealey. Mealey has a history building startup companies. He most recently ran Onyx Corporation, an asphalt company that developed several innovative technologies.
“The IsoTruss technology is very intriguing to me. It’s at a very greenfield stage, not from a Delta 7 standpoint, but from overall implementation of the technology,” said Mealey.
Brent Johnson, who recently came on board as ACS’ chief operating officer with extensive production management expertise for Alcoa, joins Mealey on the management team. Both joined the company after serving for several months in consulting roles.
The two executives are taking steps to refocus the company on the cycling industry through its Delta 7 sports division. Last year Delta 7 introduced the Arantix mountain bike using the patented IsoTruss technology. The Arantix frame is built with carbon fiber and Kevlar in a spider web-like open lattice tube design. Despite its deceptive look, Delta 7 engineers say the open frame is extremely light and strong.
Over the past year Delta 7 has revamped its manufacturing processes and brought all manufacturing completely in-house. Through production of the Arantix, the company has incrementally improved the processes and speed of making a complex composite structure. Production efficiencies also have allowed it to lower the price of the Arantix frame by more than 40 percent.
“This has been a very busy summer for both Delta 7 Sports and ACS,” said Mealey. “We’ve completed financing, we’ve restructured and expanded our management teams, and we’ve made significant inroads in creating replicable manufacturing processes, a key component of which was revamping our manufacturing program, as well as bringing all aspects of our manufacturing in-house. I’m very pleased with the progress we’ve made, and I’m highly encouraged on our prospects for future success.”