BioExx Specialty Proteins Ltd.
TSX : BXI

BioExx Specialty Proteins Ltd.

January 06, 2011 07:00 ET

BioExx Receives Positive Feasibility Report in Minot

New Study Suggests Canola Good for Infant Formula

TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) - BioExx Specialty Proteins Ltd. (TSX:BXI) is pleased to announce that it has received a thorough and positive feasibility report from N.C. Doty & Associates LLC, regarding the development of its planned 80,0000 Metric Tonne per year canola processing facility to be located in Minot, North Dakota. Receipt of this report assists BioExx in aggressively pursuing construction plans for the facility in 2011.

The feasibility report was commissioned by the Agriculture Products Utilization Commission (APUC), which is a division of the North Dakota Department of Commerce. The report, which is also a requirement of a potential project lender, included comprehensive investigations of the BioExx markets, products, technology, management team, and overall project economics. The report concluded that, "the BioExx canola protein isolate manufacturing facility would be commercially feasible, is well located and commercially supported in the Minot area, and would make a valuable addition to the business base for the Minot community."

Overall, the development of the proposed facility was concluded as being feasible because: 

  • There exists a rapidly expanding global market for protein ingredients from animal and vegetable sources. In addition to replacing soy protein isolates, canola protein isolates can also take the place of animal (dairy) protein isolates. The protein ingredients marketplace is projected to grow significantly in the near and extended future. The introduction of canola protein isolate products with high nutrition profiles and superior functional characteristics should be welcomed by manufacturers and marketers of protein fortified food and nutraceutical products.

  • Canola protein isolates from BioExx are expected to perform as well as dairy protein isolates and better than most soy protein isolates in selected applications in the food and beverage marketplace, based on a nutrition profile that match milk protein isolates and that exceeds soy protein isolates. The hydrolyzed protein product Vitalexx™is suitable as a good alternative for less tolerant children and adults. It has a great potential and is expected to perform well in the high value pediatric and therapeutic nutrition market.

  • BioExx has strong strategic partnerships in place, which may be leveraged for supply to and distribution from, its planned North Dakota facility.

  • BioExx has demonstrated its capacity to develop, build, and operate a canola protein isolate production facility.

  • BioExx has developed a patent and patent pending portfolio that protects its design and process technology regarding the production of canola oil, meal, and protein isolate products. BioExx's processes and products have undergone a series of extensive scientific and legal reviews to confirm their unique properties and assessment of freedom to operate in the marketplace.

  • Each management team member has capabilities and experience to supply the leadership and direction required by their positions to execute BioExx's business plan.

  • By entering the marketplace with canola protein isolate pricing on a par with other vegetable protein isolates, a proposed Minot facility could feasibly operate on a sound financial footing of profitability and positive cash flow.

Dr. Neil Doty, author of the study, has been comprehensively involved in the protein ingredient marketplace for 35 years. Neil earned a Ph.D. in Cereal Chemistry and Technology from North Dakota State University (NDSU). Part of Dr. Doty's work at NDSU involved isolating and characterizing sunflower protein fractions from sunflower kernels.

His first professional position was as the Director of Product Development at General Nutrition Corporation (GNC), where he became involved in developing food and nutritional supplement manufacturing development for GNC over the next 12 years, with a focus on the introduction to the market of soy protein isolates to global markets. During this period, Dr. Doty was directly involved in formulating and developing protein-based product lines that included protein fortified breakfast cereals, baked goods, pasta, snack foods, nutritional supplements and cosmetics; yogurts; prepared dry dinners; and liquid dietary collagen protein. The protein beverage mix product line, which utilized the protein ingredients casein, whey protein isolate, egg white protein, and soy protein isolate, rapidly became supplements of choice for athletes and body builders.

Dr. Doty was also co-founder and President of Sonne Labs, which focused on producing sunflower and soybean-based food ingredients and snack foods, and whose high protein snack foods were sold to a majority of the USDA School Lunch participating schools in the U.S., as well as a line of soy protein isolate beverage mix products that were sold to Far East customers. The company was sold in 2004.

Dr. Doty started N.C. Doty & Associates, LLC in 1994 and has been involved in agricultural and food business development since that time. Projects include studies on soybean crushing, canola crushing, grain milling, dry edible bean processing, soybean snack, nutrition bar, and dairy products manufacturing. Several of these projects involved fortification with protein ingredients such as caseinates, whey protein isolates, and soy protein isolates.

European Study Suggests Canola Oil Adds Value For Infant Formula

As reported in Nutra-Ingredients on January 3, 2011, "a new study that re-examined data on the length and weight gain of infants indicates that infant formula containing canola oil supports normal growth. According to the authors of the new study from Germany, this nutritional profile facilitates the manufacture of infant formula with a fatty acid profile more similar to human milk."

This study, while examining canola oil rather than protein, does add to a growing body of evidence with respect to the nutritional efficacy and food safety of adult, child, and infant nutrition products derived from canola.

The full article and the references to the authors of the report are posted on the BioExx website in the 'Media Articles of Interest' section of the 'News and Events' tab at: http://www.bioexx.com/index.php?option=com_content&view=article&id=105&Itemid=89

Saskatoon Update

BioExx also reports that its Saskatoon protein facility is being ramped-up according to required food- grade procedures and remains on schedule toward its next major milestone of HACCP certification. Typical ramp-up challenges have been encountered with items such as ongoing control systems adjustments, conveying systems, pumps, and seals, but these issues have generally been addressed quickly and are non-recurring once corrected. As expected and previously communicated, these challenges have resulted in moderate production volumes, and fluctuating yields and purities. The Company remains quite comfortable with the timing of its next major milestone of food-grade certification, the ensuing commencement of commercial shipments, and the continued ramp-up of plant volumes.

BioExx is also pleased to report that, upon becoming HACCP certified, the food safety control procedures established in Saskatoon are expected to be in full compliance with all defined clauses of the new United States S. 510 Food Safety Modernization Act, passed into law on January 4, 2011.

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 www.bioexx.com

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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