IRI Separation Technologies Inc.

IRI Separation Technologies Inc.

November 06, 2007 15:00 ET

IRI Separation Technologies Inc. Announces Letter of Understanding to Acquire Enerex Botanicals Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2007) - IRI Separation Technologies Inc. (TSX VENTURE:IRI) is pleased to announce it has entered into a letter of understanding to acquire all the outstanding shares of Enerex Botanicals Inc. ("Enerex"), Phoenix Nutraceuticals Ltd. ("Phoenix") as well a related company Health Connection. Ca Ltd. - (the Enerex Internet marketing arm, and bone density testing unit).

Enerex is a privately held corporation which, among other things, formulates and markets various nutraceuticals to health food stores, pharmacies and other such retail outlets under the Enerex brand. Phoenix is a privately held corporation which, among other things, imports raw materials for the nutraceutical and related manufacturers and operates from the Enerex premises.

IRI is seeking to establish its MUNO™ brand of immunoglobulin antibodies with the nutraceutical industry. Enerex has a presence in the market, currently servicing over 500 health food locations across Canada and has, in addition, an international network of distributors. Enerex has a sales force with technical expertise in marketing nutraceuticals, who will introduce the MUNO™ brand to their market, under an Enerex label. Enerex is accepted as a formulator and marketer of quality products.

Enerex is led by Mr. Barrie Carlsen who has an extensive 30 year background in the development of brands and markets in the vitamin and nutraceutical industry. His past experience includes the start up and success of Quest Vitamins, which he later sold. Under the agreement Mr. Carlson will be retained by IRI to lead the nutraceutical division under the Enerex banner and on closing of the agreement will be issued 200,000 options exercisable at $0.38 per share, such options to be vested over two years with a five year term.

This letter of understanding is subject to satisfactory completion of further due diligence, IRI - board of director approval, and IRI obtaining TSX Venture Exchange approval. The letter of understanding provides for a purchase price of $2,600,000, for the Enerex group of companies and comprises cash and earn out securities. The Company proposes a $3,000,000 Private Placement in support of this, and other acquisitions and as additional working capital.

About IRI Separation Technologies Inc.

IRI Separation Technologies Inc. (TSX VENTURE:IRI) is a biotechnology company that specializes in the extraction, development and commercialization of polyclonal immunoglobulin antibodies for virus and bacteria related health issues. Intended for use as a nutraceutical for human consumption, the antibodies are derived from bovine whey or chicken eggs. The immunoglobulin antibodies are intended for both the general and specific antibody market.

On behalf of the Board of Directors,

John Mason, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • IRI Separation Technologies Inc. - Vancouver Office
    John Mason
    (604) 807-8694
    (604) 926-1485 (FAX)