Press release from Marketwire
BioExx Obtains Preliminary Third Party Technology Confirmation
Reaches 90% purity and rationalizes operations
Wednesday, February 29, 2012
TORONTO, ONTARIO--(Marketwire - Feb. 29, 2012) - BioExx Specialty Proteins Ltd. ("BioExx" or the "Company")(TSX:BXI), the first company to commercialize a new and complete food-grade protein from a major global crop in 50 years, today announced that it has received preliminary third party confirmation of the scalability of its unique canola protein production methods from GEA Process Engineering Inc. This confirmation, together with success in achieving the major milestone of 90% protein purity, strongly supports the Company's strategy to pursue qualified strategic partners.
The preliminary GEA report confirms the feasibility for plant sizes of 40,000 Mt and 80,000 Mt per year and also details the associated equipment and capital investment requirements. "Our progress and investment, together with successful innovation, over the last 6-12 months in particular, have been instrumental in stabilizing and proving the strength of our technology, as well as in providing a solid foundation for the work undertaken by GEA", said Chris Schnarr, CEO of BioExx. "It has been a long and challenging road to get here, but I think we can now safely say that the technology is strong, it is feasible, it is scalable, and it can drive compelling economic returns."
As the GEA report focused on the core protein processing area, it did not include ancillary costs for land, buildings, crush capacity and utilities infrastructure. The totals, including these ancillary costs, for the 40,000 Mt Saskatoon plant and an 80,000 Mt "greenfield" plant are estimated at approximately US$65 million and US$130 million respectively. Based on this preliminary report, the Company believes that its technology offers very attractive returns on investment to potential strategic partners in either scenario. GEA will now undertake the second phase of its mandate, over the next 10-12 weeks, to complete further engineering work and more detailed cost estimates. Subsequent implementation in accordance with final recommendations can be done on a turnkey basis, with performance guarantees based on final engineering and testing results as to protein purities, yields, production volumes, and key operating cost metrics.
In the interim, with this confirmation of its technology completed, the Company will proceed aggressively with its strategic partnering process. "We are moving towards being in a position to deliver to strategic partners an economically compelling and complete turnkey and performance-guaranteed package to produce high quality canola protein for delivery to a very large global market", Chris Schnarr continued. "Major industry players have already shown interest in accessing our process and expertise and this report should definitely serve to support further interest".
The Company is also pleased to announce its recent success in reaching a major milestone through the production of its Isolexx™ canola protein at greater than 90% purity. The Company notes that this success came without trade-offs in process yields or throughput - both of those metrics have in fact also improved, while still achieving these very high purities. This is another "first ever" accomplishment and further strengthens the technology foundation available to potential strategic partners.
Finally, in order to minimize interim operating losses which do not contribute to the fulfillment of the corporate strategy and also to preserve available capital, the Company is scaling back operations at the Saskatoon plant to two days a week, which is sufficient to demonstrate process efficacy to qualified strategic partners as they are identified.
BioExx will hold a conference call to further discuss this announcement, Thursday March 1, 2012 at 9:00 a.m. (ET).
Participant dial-in number(s): 416-340-2216 / 866-226-1792 / 800-9559-6849
Replay Dial-in number(s): 905-694-9451 / 800-408-3053 / 800-3366-3052 Pass code: 5518212
Available until: Midnight, March 15, 2012
The call will be audio-cast live and available for replay at www.bioexx.com.
GEA Process Engineering is a group of more than 40 process engineering companies specialized in process technologies, and is one of the world's market and technology leaders in 90 percent of its businesses. GEA Process Engineering develops, designs and markets production plants, systems and processes for the food, beverage, pharmaceutical and chemical industries. With a turnover of approximately EUR 1.3 billion in 2010 and close to 4,600 employees working in 40 countries, GEA Process Engineering is recognized as a world leader in industrial drying, concentration, liquid processing, powder processing and handling, and aseptic packaging. GEA has specific and relevant industry experience with concentration and spray drying of both animal and plant-based proteins.
About BioExx Specialty Proteins Ltd.
Headquartered in Toronto, Canada, BioExx is focused on the separation of oil and high-value proteins from oilseeds for global food, beverage, nutrition, and other markets. BioExx employs trade secret, patented and patent-pending technologies that utilize significantly lower temperatures than conventional oilseed processing, in order to enable the improved separation of proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint.
To find out more about BioExx Specialty Proteins Ltd. (TSX: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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chris Schnarr BioExx Specialty Proteins Ltd.: Chief Executive Officer (416) 588-4442 x111 firstname.lastname@example.org
Scott Koyich Investor Relations: President, Brisco Capital Partners (403) 262-9888 email@example.com www.bioexx.com