Functional Technologies Corp.
TSX VENTURE : FEB

Functional Technologies Corp.

June 22, 2009 09:51 ET

Functional Technologies Corp. Closes Private Placement Raising Gross Proceeds of $3.2 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2009) -

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Functional Technologies Corp. (TSX VENTURE:FEB) reports the closing of the private placement reported in its press releases of June 8 and April 14, 2009, raising gross proceeds of $3.2 million by the issuance of 8 million units. In connection with the offering, the company has paid to Loewen, Ondaatje, McCutcheon Limited and its selling group a cash commission of $244,400. The company has also issued broker's warrants for the purchase of 553,000 units having the same attributes as the units sold to the investors, exercisable for 24 months at a price of $0.40 per unit. The securities issued in this private placement are subject to a hold period expiring on October 20, 2009.

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Functional Technologies Corp.

Functional Technologies is a functional foods and biological health products company that develops and commercializes advanced yeast products, and other novel biological products, for the food and the health care industries. The company is currently commercializing a platform yeast technology that substantially reduces the formation of ethyl carbamate (also known as urethane, which has been recently reclassified by the World Health Organization up to a Group 2A carcinogen - the same carcinogen class as lead, mercury, acrylamide and diesel exhaust), from wines and other widely consumed fermented beverages and foods. As part of its core focus of improving and enhancing the quality of the global food and beverage supply, Functional Technologies has recently expanded its yeast portfolio through the licensing of proprietary hydrogen sulfide (H2S) reducing technology from the University of California at Davis. H2S is one of the most common occurring sensory defects, and a widespread problem, in wine production. In addition Functional Technologies, through its wholly-owned subsidiary Phyterra Bio Inc., is developing a platform of proprietary biological products, for animal health, utilizing proprietary science in the field of micro-algae.

For further company information, please access our website at www.functionaltechcorp.com.

ON BEHALF OF THE BOARD

Howard Louie, Chairman & CEO

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