Bio-Extraction Inc.

Bio-Extraction Inc.

November 13, 2008 16:05 ET

BioExx Announces Q3 2008 Results

Conference Call: Friday, November 14, 10:00 a.m. Dial-in Numbers: 416-695-6310 / 866-542-4270

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2008) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx" or "the Company") announced today its financial results for the interim period ending September 30, 2008. Complete financial statements and Management's Discussion and Analysis are available for public review at This release is consistent with the timing requirements not only of the TSX Venture Exchange but also the more stringent deadlines required for TSX listed companies.

"All activities related to the January 2009 start-up of production at our Saskatoon canola processing facility progressed at a strong pace throughout the quarter and continue to proceed on schedule. This includes engineering, construction, recruitment of key plant personnel, and commercial arrangements for the purchase and sale of products produced at the facility. The schedule and budgets that we have set for ourselves are tight but we are tracking well against those and look forward to making the transition from a development company into an operating company in early 2009," said Chris Carl, President and CEO of BioExx. "From a market perspective, we continued to see healthy crush margins in local currency terms, despite a significant drop in commodity prices during the quarter and we attribute this to the pervasive and growing concerns regarding global food scarcity and protein shortages. This scarcity is creating a tremendous opportunity for BioExx, for our Saskatoon production facility as well as additional, progressively larger-scale facilities that we will construct over the longer term."


The Corporation incurred expenses of $1,006,236 during the third quarter of 2008, or $806,570 excluding stock-based compensation. This compares to $877,399 and $582,354 in Q2 2008, and to $412,355 and $315,620 in Q3 2007. The increases are a result of the increased scale and scope of the Corporation's activities, as it moves towards commercialization of its technologies through the construction of its Saskatoon canola processing plant. The primary source of the expense increase during Q3 2008 over Q2 2008 was an increase in R&D expenditures of $217,951, driven by the Corporation's intensified efforts in the development of its protein products in readiness for commercial deployment, including the development of higher concentration food-grade protein Super-concentrates and protein Isolates. Subsequent to the end of Q3, BioExx announced it had secured $635,500 of grant and deferred payment loan funding from two separate Saskatchewan-based agencies, to be directed to these ongoing protein development activities. All of the foregoing expenditure increases are in accordance with and in line with the Corporation's business plan.

Interest Revenue

During the quarter, the Corporation earned $96,637 of interest revenue, from interest-bearing bank-guaranteed short-term deposit certificates.

Net Loss

The Net Loss for the quarter was $911,308, compared to $796,126 in Q2 2008, and to $405,196 in Q3 2007. Again, the increased net loss flows primarily from increased activity levels across all areas of the Corporation, as discussed above. On a per share basis, the Net Loss was $0.01 for Q3 2008 versus $0.01 for Q2 2008 and $0.01 for Q3 2007.

Working Capital and Liquidity

As at September 30, 2008, current assets were $9,842,860, including cash of $8,671,197. Against current liabilities of $1,045,801, this results in net working capital of $8,797,059, compared to current assets of $12,442,864 and net working capital of $11,740,821 at June 30, 2008. The reduction in net working capital is the result primarily of the deployment of funds by the Corporation to capital assets in the construction of the Saskatoon plant. The Corporation expects this funds flow to continue as cash is allocated to the completion of the plant.

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 is currently constructing its first commercial specialty extraction facility for processing canola to produce protein concentrates for the aquaculture and specialty animal feed markets, as well as canola oil and meal. The facility, located in Saskatoon, Saskatchewan, is expected to begin commercial operation in early 2009. 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's products, the availability of funding, 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 the BioExx's 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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