BioExx Specialty Proteins Ltd.

BioExx Specialty Proteins Ltd.

November 15, 2010 16:05 ET

BioExx Announces Q3 2010 Results

And Confirms Previously Announced Start-Up Timing in Saskatoon

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) -

Conference Call: Tuesday, November 16, 10:00 a.m. ET

Dial-in Numbers: 416-340-8530 / 888-340-9642 / 800-9559-6849

BioExx Specialty Proteins Ltd. (TSX:BXI) announced today its financial results for the period ended September 30, 2010. Complete financial statements and Management's Discussion and Analysis have been filed for public review at

Financial Results


During the quarter, the Company generated $178,464 of revenue from canola oil and canola meal sales at its Saskatoon plant, versus revenue of $838,283 in the prior quarter.

Lower revenues and margins were driven by oil and meal pricing weakness, high seed input costs, and a decision to operate only on an as-required basis. Since the Company had previously proven and solidified the crushing operating parameters required for protein operation, economic optimization suggested running the crush plant only when required for additional process testing or to meet long term customer orders. The Company did make effective use of its employees during these low operating periods and the economic benefit of this decision is reflected in the reduced plant operating losses during the quarter.

Gross Margin and Plant Margin

Gross Margin for the quarter was negative $112,900, compared with negative $248,179 for the prior quarter. The Gross Margin loss was reduced primarily as a result of lower labour and utilities costs in the quarter which accrued to the lower volumes processed.

Together with reductions in Other plant expenses and relatively flat amortization of plant and equipment, Plant Margin was negative $668,155, versus a negative Plant Margin of $821,235 in the prior quarter.

As the Company has discussed in prior quarters, during weak crush margin periods, the operation of a very small 40,000 metric ton crush-only plant is economically challenging. Q3 operations were therefore guided by the appropriate minimization of unnecessary losses. Until the pending introduction of protein production, plant operations are best viewed not on a stand-alone basis but rather as a stepping stone towards protein production.

Administrative and General Expenses

The Corporation incurred lower administrative and general expenses during the quarter, at $2,437,658 compared to $2,637,869 in the prior quarter, with the reduction driven primarily by lower stock based compensation quarter over quarter which accrued to natural reductions in time-weighted expense recognition on annual stock option issuances.

Net Loss

The Net Loss for the quarter was reduced to $3,085,713, compared to $3,426,357 for the prior quarter. This reduction in net loss is the cumulative result of the various items discussed above. On a per share basis then, the Net Loss is $0.02 for the quarter, versus $0.02 in the prior quarter.

Working Capital and Liquidity

As at September 30, 2010, current assets were $26,905,496, including cash and restricted cash of $23,471,846. Against current liabilities of $3,983,299, this results in net working capital of $22,922,197. This strong financial position is a result of the completion of a bought-deal public offering of common shares for net proceeds after agents' commissions of $32.4 million, inclusive of the exercise of the agents' over-allotment option. This offering has provided the Company, and its partners and potential customers, with confidence in the Company's strength as it moves through continuing capital additions and ramp-up of commercial protein production in Saskatoon and the further development of its planned North Dakota facility.

Saskatoon Plant Update

Further to the Company's press release of November 1, 2010, the Company confirms that it remains on schedule to commence continuous protein production operations at the Saskatoon plant during the week of November 15, 2010, and looks forward to discussing this on the conference call and to providing further details on that milestone by press release as and when available.

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 the global food, beverage, and nutrition markets. BioExx uses patented and patent-pending technology that utilizes significantly lower temperatures than conventional methods for extracting the final quantities of oil necessary to enable its simplified and patent- pending methods for separating proteins from oilseeds. Relative to other commercial processes, the low temperature BioExx process results in comparatively low energy requirements, environmentally sound extraction and protein separation processes, and very high human food yield that cumulatively have the potential to make a highly valuable contribution to global food and protein supply while maintaining an excellent environmentally sustainable footprint. BioExx operates a commercial scale extraction 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

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.

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