Bio-Extraction Inc., known as BioExx or the Company, is pleased to announce the appointment of Dr. Edward Wein to its Scientific Advisory Board. Dr. Wein will play an active role in the final stages of the GRAS and related product certifications for Protein Isolate products to be produced by BioExx at its Saskatoon facility and future facilities, as well as advising the Company regarding the development of specific food product applications. This will include specialized and on-going testing to determine and verify the applicability and/or superiority of BioExx proteins to specific food product opportunities.
With a PhD in Biochemical Engineering from University of Toronto, Dr. Wein has a distinguished career of more than 30 years in the food, functional food, and food ingredients markets with a special emphasis on proteins. Dr. Wein has served as an adjunct professor at the University of Guelph, Faculty of Engineering; advisory board of Ryerson University department of Chemical Engineering; and is a past member of the Canada Expert Committee on Food Biotechnology. He has also held senior R&D and commercialization positions at Canada Packers Ltd. (now Maple Leaf Foods), Ault Foods (now Parmalat), Nexia Biotechnologies Inc. and Bariatrix Products International. Dr. Wein is currently a consultant for a variety of companies conducting research in food products, nutraceuticals, and nutritional and food supplements, in North America, Europe and the Middle East.
"We welcome Dr. Wein as an important member of our Science team who brings to BioExx a wealth of critical experience in the protein world," says VP of Business Development, Samah Garringer. "His practical experience in the development, production and sale of similar products will help ensure BioExx completes a smooth transition into the sale of its Vitalexx(TM) and Isolexx(TM) products and then continues to optimize its protein product portfolio over the longer term."
Operations and Market Update
BioExx has continued to install equipment designed for the second phase of its operations and as a result, the key operating metrics of quality, yield, and throughput have continued to improve. The plant is now able to produce food-grade degummed expeller oil, with an expectation of producing super-degummed expeller oil before the end of the current quarter. BioExx has continued to produce a premium value meal since May of this year.
Although the Company is pleased with the operating performance of the plant, canola industry crush margins have recently declined toward the low end of the five year trading range. While the Company does not expect this market condition to persist in the long term, it does create challenges with respect to breakeven operations at the plant based on interim crushing operations. The plant continues to forecast break-even or better operations if and when crush margins return to previous levels. Regardless, the Company does not consider the current crush margin weakness to be economically meaningful in the context of its longer term business plan as its crush-only operation is temporary in nature, pending the start-up of protein production operations.
BioExx is also pleased to confirm that long lead time equipment items for its Extraction and Protein phases have been ordered for 2009 delivery. Unless there are unforeseen delays in equipment delivery, BioExx continues to work from a schedule that allows for installation and start-up before the end of this calendar year.
In response to an article published by Reuters on August 6 regarding salmonella contamination problems in the meal produced at several Canadian canola processing plants, BioExx is pleased to report that as a result of its rigorous HACCP quality assurance program, regular testing of the BioExx meal has shown no such problems at the BioExx plant to date.
BioExx has agreed to extend its contract with Brisco Capital Partners to provide Investor Relations services for another year commencing August 10, 2009. As part of the extension, BioExx is granting Brisco an Option to purchase 100,000 common shares at a strike price of $1.44, having a two year term and vesting over 12 months. This replaces a previous option which is expiring.
In keeping with the spirit of warrant holders who have exercised warrants prior to their maturity, at the request of the Company, BioExx CEO Chris Carl has sold shares to generate after-tax proceeds sufficient to repay a loan to the Company (as disclosed in the BioExx financial statements), in the amount of $250,000 plus accrued interest, that was not due until March 2010. Mr. Carl also anticipates selling a small percentage of his holdings over the balance of the year to raise necessary funds to repay some third party debts incurred in the past six years during the building phase of the Company.
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 market. 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., 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.