Vancouver, British Columbia - April 18, 2002 - Forbes Medi Tech Inc. (TSE:FMI and NASDAQ:FMTI) announced today the Company has received an offer to purchase its pilot manufacturing plant in Amqui, Quebec for $1.6 million from 3824527 Canada Inc. All amounts are in Canadian dollars.
Forbes will be receiving a $50,000 non-refundable deposit from the purchaser, and is scheduled to receive $700,000 in cash by July 15, 2002. The purchaser will be paying the $850,000 balance over a seven-year period plus interest at 6.5 per cent per annum.
Forbes purchased the Amqui plant in December 1998 for $1.5 million so the Company could develop and scale up its phytosterol extraction and manufacturing technology to commercial levels. The Company subsequently invested approximately $5 million to refurbish the plant. In January 2001, Forbes entered into a joint venture with Chusei (U.S.A.) Inc. to form Phyto-Source LP to build and operate a significantly larger dedicated wood-based sterol manufacturing plant in Pasadena, Texas to produce Forbes' proprietary sterol-based cholesterol lowering functional food ingredient Phytrol™ as well as different formulations of phytosterols for food and non-food markets. Forbes subsequently wrote down $3 million against the Amqui plant assets, and will record a further write-down of $1.3 million in the Company's December 31, 2001 year-end results.