BioExx Announces $2.95 Million Agri-Opportunities Funding
September 23 2009 - 4:30PM
Marketwired
Bio-Extraction Inc. (TSX VENTURE: BXI), known as BioExx or the
Company, is pleased to announce that it has been conditionally
approved for a repayable contribution of $2,958,000 by Agriculture
and Agri-food Canada, under its Agri-Opportunities program. Subject
to completion of a definitive agreement, the proceeds from the
contribution will be used for capital equipment, installation, and
commissioning for the BioExx protein isolate production system at
its Saskatoon canola processing plant. The contribution is
interest-free, unsecured, and is repayable in five equal annual
instalments beginning in April, 2013.
"We are very pleased to have been approved for funding under the
Agri-Opportunities program", said Chris Schnarr, BioExx Chief
Financial Officer. "It is this type of support and these types of
programs that help leading-edge companies commercialize processes
and products, such as we are doing at BioExx. This fostering of
innovation is important to the creation of value and helps drive
investment, economic growth, and job creation. We are thrilled to
have been selected for participation in this valuable program."
The Honourable Gerry Ritz, Canadian Minister of Agriculture and
Agri-Food, hosted a press conference at the BioExx processing
facility in Saskatoon on Wednesday, September 23, 2009 at 5:00 p.m.
ET, to officially announce the funding arrangement with BioExx and
to discuss the Agri-Opportunities program.
Based on its patented low-temperature oil extraction and
patent-pending protein separation processes, BioExx has developed a
family of unique canola protein isolate and hydrolyzed protein
products to be produced at its Saskatoon plant. These products are
well-suited to a multitude of food and beverage applications, such
as baked goods, meat products, energy bars, fruit juices, and
sports drinks. Being able to access a program such as
Agri-Opportunities is of great assistance to BioExx in developing a
balanced capital structure and reducing its overall cost of capital
to support this technically innovative and important protein
isolate processing facility.
About Agri-Opportunities
The $134 million, Agri-Opportunities Program, launched in
January 2007, is a five-year program that aims to accelerate the
commercialization of new agricultural products, processes or
services that are currently not produced or commercially available
in Canada, and are ready to be introduced to the marketplace.
Agri-Opportunities is delivered nationally by Agriculture and
Agri-Food Canada. Funding is provided to projects that focus on new
agri-food, agriculture or bioproducts, that can be expected to
increase market opportunities for the Canadian agricultural
industry across the value chain and generate demand for primary
agricultural products.
BioExx Operations Update
Excellent progress continues to be made on completion of the
extraction and protein isolate areas of the Saskatoon plant. Timing
for GRAS self-affirmation continues to be projected well ahead of
protein production, and equipment installation is set to commence
by the end of October and carry on through to start-up.
Unfortunately, it does appear that delivery of some equipment will
be slightly later in the year than desired. While not significant,
system start-up is now projected to commence in mid to late
February rather than around year end. Every effort is being made to
shorten the timetable but equipment delivery times do control
critical path at this point in time.
Additionally, testing and market penetration activities have
continued with BioExx's protein distribution partner, Helm AG. "The
protein market faces a serious lack of high purity plant proteins
and that supply gap is continually widening. The big advantage we
have with the BioExx product is that it is strong in all required
characteristics for food products, including superior nutritional
value, good taste, functional properties, and solubility", said Mr.
Sergej Lazovic, Executive Manager of Helm AG. "We have presented
the company and the samples to customers that we have strong
relationships with and can confirm that BioExx has been able to
develop protein products that meet their needs very well. This
includes representatives in the meat and spice, bakery, functional
foods, and sports food markets. Consequently, there should be
strong demand for BioExx protein in the market and there are
already a number of very interested customers waiting for regular
production to commence."
With respect to current operations, BioExx is pleased to report
that it is now producing its targeted quality of super degummed
(SDG) oil at higher than target yields (percentage of oil recovered
from pressing) with ever increasing quantities being processed.
This will allow shipping and sales of premium oil commencing in
October, in addition to the premium meal already being sold.
Current operating performance at the plant is very strong, with
September average daily quantity of seed processed up 60% and
average daily oil production up 67% versus the second quarter.
BioExx is very pleased with this performance and looks forward to
continued strength in operations from here forward as it moves
towards protein production.
About Bio-Extraction Inc.
Headquartered in Toronto, Canada, BioExx is a leading technology
and industrial processing company focused on the extraction of oil
and high-value proteins from oilseeds for the global food,
beverage, and nutrition markets. BioExx's patented technology
allows for the use of significantly lower temperatures than
conventional methods in extracting the active ingredients and oils
from oilseeds, resulting in higher yields and higher-quality meal,
oils and proteins. BioExx's low energy requirements,
environmentally sound process, and high-yield production have the
potential to make a valuable contribution in alleviating food
scarcity. BioExx operates a commercial scale extraction facility in
Saskatoon, Saskatchewan, and has a mission to construct additional
and larger processing facilities on a global basis. To find out
more about Bio-Extraction Inc. (TSX VENTURE: BXI), please visit
www.bioexx.com
"The statements made in this press release include
forward-looking statements that involve a number of risks and
uncertainties. These statements relate to future events or future
performance and reflect management's current expectations and
assumptions. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, such as the economy, generally, competition in its
target markets, the demand for BioExx's products, the availability
of funding, the efficacy of its technology, and the anticipated
costs of BioExx's plant construction and operation. These
forward-looking statements are made as of the date hereof and
BioExx does not assume any obligation to update or revise them to
reflect new events or circumstances. Actual events or results could
differ materially from BioExx's expectations and projections."
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Contacts: Bio-Extraction Inc.: Chris Schnarr Chief Financial
Officer (416) 588-4442 x111 cschnarr@bioexx.com Investor Relations:
Brisco Capital Partners Scott Koyich President (403) 262-9888
scott@briscocapital.com
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