BioExx Specialty Proteins Ltd.

BioExx Specialty Proteins Ltd.

December 20, 2011 07:30 ET

BioExx Appoints Advisor and Provides Plant Update

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2011) -


BioExx Specialty Proteins Ltd. (TSX:BXI) ("BioExx" or the "Company") announced today that, after a thorough search and review process, it has retained Canaccord Genuity Corp. to act as its advisor in connection with its previously announced initiative of seeking one or more strategic partners for the Company. The focus will be on finding a partner that can leverage the Company's intellectual property and extensive operating knowledge of food-grade canola protein.

Mr. Chris Schnarr, Chief Executive Officer of BioExx, said, "As we have previously communicated, we believe now is the right time for BioExx to explore a strategic relationship with a company that can provide global commercial infrastructure to unlock the value of our food-grade canola protein, as well as capital to support our long term growth initiatives."

There is no defined timeline for the search for a strategic partner and there can be no assurance that the process will result in any specific action. Given the nature of the process, during the execution phase, the Company may not be able to comment further regarding progress in the evaluation of strategic alternatives, unless a specific transaction is concluded, or it otherwise deems further disclosure is appropriate or required.

Plant Update

Operational results have continued to improve at the Saskatoon plant. Gains are accruing to capital improvements, the move to the solvent-free process, and the accumulation of additional operating experience in the Company's unique production environment. Since the most recent update on November 15, 2011, protein production volumes have increased from an average of 1.2 metric tons per week to over 2.0 metric tons per week.

"In simplest terms, we are improving on every metric. We are putting feedstock into the system faster than previously, getting better yields, and running more consistently and continuously for better uptime - and therefore our production volumes have been steadily increasing," said Mr. Schnarr. "Of course, we still have a long way to go, but we are moving forward and we are striving to do better."

Perhaps more important than production volume at this point, is product quality. Protein purity has continued to improve, averaging 86% recently, versus 83% at the November 15 update (and versus 80% pre-shutdown). Also, microbiological quality of the finished product continues to be strong, as do organoleptic properties (taste, colour, smell).

With these production improvements, the Company is accumulating inventory of finished goods in logistically efficient quantities, for shipment to customers in January.

Going forward, the key interim focus of operations will continue to be on quality and consistency, based substantially on existing infrastructure. While the Company will continue its efforts to increase production above current levels, the rate of such increases is expected to be more moderate going forward, with the key priorities being consistency, quality, and steady shipments to customers. This is intended to ensure a stable and scalable platform, reduce uncertainty and variability, provide a strong foundation for future capacity expansion, and reduce interim capital expenditure requirements, while at the same time enabling the Company to move forward with its strategic partner plans.

About BioExx Specialty Proteins Ltd.

Headquartered in Toronto, Canada, BioExx is a technology and processing company focused on the separation of oil and high-value proteins from oilseeds for global food, beverage, nutrition, and other markets. BioExx employs trade secret, patented and patent-pending technologies that utilize significantly lower temperatures than conventional oilseed processing, in order to enable the improved separation of proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint.

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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