Bio-Extraction Inc.

Bio-Extraction Inc.

May 28, 2009 16:02 ET

BioExx Announces Q1 2009 Results

Conference Call: Friday, May 29, 10:00 a.m. Dial-in Numbers: 416-340-8061 / 866-225-2055

TORONTO, ONTARIO--(Marketwire - May 28, 2009) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx" or "the Corporation") announced today its financial results for the quarter ended March 31, 2009. Complete financial statements and Management's Discussion and Analysis have been filed for public review at

"The first quarter of 2009 was marked by a final push to get our Saskatoon plant into operation, which occurred on February 29. The Saskatoon team did an excellent job overcoming several engineering issues to achieve initial production and they then spent much of March making final equipment adjustments and fixes to allow for steady-state operations to being in earnest in early April," said Chris Carl, BioExx CEO. "Since then, we have moved to full 7/24 operations and made strong progress in a number of areas, and continue to trend very positively on all metrics in our drive towards profitability."

From the commencement of commercial sales on April 1, efforts have been focussed in three successive areas, namely product quality, oil yield, and seed throughput.

- Product quality of meal has increased dramatically since initial production with selling prices having more than doubled in the past two months, to a point where meal is now selling at a premium to standard commodity meal prices. Oil quality has also improved markedly, with pricing now near or at standard commodity rates, with an expectation that pricing could surpass commodity levels in the near term.

- Oil yields from seed have increased from 50% initially to an average of near 80%, thus meeting all expectations for Phase 1 operations.

- Finally, throughput volumes of seed are currently at about 50% of final capacity, with a clear plan to reach full capacity over the coming weeks as some Phase 2 equipment is installed.

The net result of these improvements is an 80% month-over-month revenue growth from April to May, and an anticipation of similar revenue growth over the next two months.

"In addition to concentrating on maximizing revenue and margin from our Phase 1 operations, we are also making excellent progress toward implementation of the Extraction and Protein phases of production (Phases 2 and 3) and we remain very optimistic about the added revenue and margin that will be achieved in these key areas," said Chris Carl.


The Corporation incurred expenses of $1,064,090 during the first quarter of 2009, versus $1,059,427 in the prior quarter and $808,002 in the comparable prior year period. The small increase results from increases in Office and general expenses as a result of the continued intensification of the Corporation's activities, together with the inclusion of Plant Commissioning and Start-up expenses for operations at the Saskatoon plant prior to commencement of product sales. These two increases are netted against a reduction in Stock-based compensation versus the comparable prior year period, as a result of fewer stock option issuances this quarter.

Interest Revenue

During the quarter, the Corporation earned $10,996 of interest revenue, from interest-bearing marketable securities. This is down from the prior quarter and comparable prior year period, as a result of the reducing cash balances held by the Corporation which accrue to continued capital spending towards completion of the Saskatoon facility.

Net Loss

The Net Loss for the quarter was $1,054,823, compared to $1,008,178 in the prior quarter and $750,827 in the first quarter of 2008, with changes flowing primarily from the same factors driving changes in Expenses as discussed above. On a per share basis, the Net Loss is $0.01 for each period.

Working Capital and Liquidity

As at March 31, 2009, current assets were $3,895,293, including cash of $1,762,582. Against current liabilities of $2,300,593, this results in net working capital of $1,594,700 (exclusive of availability of additional funds under the Corporation's various credit facilities). This compares to current assets of $5,277,238 and net working capital of $3,681,929 at December 31, 2008. The relatively large Accounts Payable balances, at December 31, 2008 and March 31, 2009 relate primarily to planned capital expenditures on the Saskatoon plant. Subsequent to quarter end, on May 14, the Corporation closed a private placement for gross proceeds of $5,304,000.

About Bio-Extraction Inc.

Headquartered in Toronto, Canada, BioExx is a leading technology company focused on the extraction of oil and high-value proteins from oilseeds for the global food market. BioExx' 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' 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

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, the demand for BioExx' products, the availability of funding, and the anticipated costs of BioExx' 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' expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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