TORONTO, ONTARIO -- (Marketwire) -- 07/07/11 -- BioExx Specialty Proteins Ltd. (TSX: BXI) ('BioExx' or the 'Company) is pleased to announce that it has concluded a Product Development and Sales License Agreement (the 'Agreement') with Hormel Foods Corporation and its Century Foods International division ('Century').
Under the Agreement, which covers the United States and Canada, the companies will co-develop BioExx proteins in various new products which will be manufactured and marketed by Century to the sports nutrition industry. Example products would include meal replacements, dietary supplements, weight-loss aids, powdered protein supplements, nutritional beverages and custom formulations. Century's efforts in engaging its markets and clients have already commenced, and Century has been granted a non-exclusive license to purchase BioExx proteins immediately to meet its own needs and those of its clients. In addition, where BioExx requires agglomeration and instantizing for protein sales to its other customers, it will retain Century to provide those services.
The Agreement also specifies terms of a separate Supply Agreement to be entered into by the parties within one year whereby, subject to Century meeting minimum purchase requirements from BioExx, Century will have an exclusive right to market products for sports nutrition applications based on BioExx proteins to a pre-defined list of existing clients serviced by Century.
'Century is a strong and successful force in the North American protein products industry, and we are excited to have the opportunity to partner with them. The combination of our unique canola protein isolates and Century's market-leading position can create a formidable presence for new products in U.S. protein markets', said BioExx CEO Chris Carl. 'We look forward to building our relationship with Century in serving the growing needs of its well-established client base.'
'Our clients are always seeking new and high value-added solutions from us to drive their growth and enhance their own position in their respective markets and we believe that the BioExx canola protein isolates provide a strong opportunity to service that need', said Thomas Miskowski, President of Century. 'We pride ourselves on recognizing market trends and as protein markets continue to shift and seek alternate solutions, our alliance with BioExx can be a key enabler in addressing these trends.'
About Century Foods International
As a division of Hormel Foods Corporation, and headquartered in Sparta, Wisconsin, Century Foods International is a leading manufacturer of custom, private label nutritional products, providing agglomeration and blending, instantizing, ready-to-drink ('RTD') beverages, and filling and packaging. Century Foods works confidentially with customers around the world to produce a diverse collection of nutritional products from simple protein beverages to more complex meal replacements and dietary supplements. Its turnkey solutions include RTD nutritional beverages, meal replacements, sports nutrition products, dietary supplements, weight-loss aids, powdered protein supplements, and custom formulations. Its customers include makers of America's top-selling branded food and beverage products. Further information is available at www.centuryfoods.com and www.hormelfoods.com.
PLANT STATUS UPDATE
The Company is also pleased to announce that it has completed its first commercial sale and shipment to Helm AG. This shipment, while less than 1 metric tonne, has been delivered in accordance with a Target Purchase Agreement for 2,000 metric tonnes of Isolexx/Advantexx per year from Saskatoon, which has been recently executed between the Company and Helm under the terms of its global Distribution Agreement. In fulfilment of that Agreement, the parties will work together on rolling 90 day forecasts to determine shipment volumes based on customer demand and production capacity on a monthly basis. Shipment volumes will rise once early stage extensive required pre-shipment product testing is reduced, resulting in inventory holding periods dropping from three weeks to one week.
Although it has only been a few weeks since the last update, the Company has observed operating improvements each week and, of equal importance, is not experiencing the recurring problems that were preventing ramp-up processes earlier in the year.
To allow for both increasing production volume and ongoing ramp-up testing, the plant is being operated in regular production mode three days per week while the fourth day is reserved to test and implement improvements to process parameters. Once improvement tests are proven successful, this becomes the new baseline for the three day production runs. The number of available operating days per week will soon increase as shift crews are added.
Specifically, while weekly production volume remains low due to downtime associated with only 2 shifts and ongoing testing, in the three weeks following the last update, hourly throughput rates have increased from an average of 35% of installed capacity to near 50%; uptime operating hours have increased by 30%; and yields have remained constant. These gains are now being incorporated into forward daily operations, to drive continued production volume growth. Purities on regular production days have remained consistently above 80%.
Each of these metrics is expected to improve significantly after the planned August shutdown, and the Company intends to continue to provide similar progress reports on an approximately monthly basis.
About BioExx Specialty Proteins Ltd.
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 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. BioExx operates a commercial scale facility in Saskatoon, Saskatchewan, is in development stages on it second plant in Minot, North Dakota and has a mission to construct additional and larger processing facilities on a global basis.
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.
BioExx Specialty Proteins Ltd.
Chief Financial Officer
(416) 588-4442 x111
Brisco Capital Partners