BlueOcean NutraSciences Inc.

BlueOcean NutraSciences Inc.

October 27, 2014 10:26 ET

BlueOcean NutraSciences and Long Lane Canada Sign Technology Marketing Agreement and Issues Shares

TORONTO, ONTARIO--(Marketwired - Oct. 27, 2014) - BlueOcean NutraSciences Inc. (TSX VENTURE:BOC) ("BlueOcean" or the "Company") is pleased to announce that it has executed a Technology Marketing Agreement ("Agreement") with Long Lane Canada Ltd. ("Long Lane") to introduce BlueOcean's Vegetarian AlgaOmega™ oil to the Indian market. The Agreement gives Long Lane the exclusive rights to market BlueOcean's algae production platform for the production of AlgaOmega™ oil in India with large strategic Indian nutraceutical and pharmaceutical companies with a focus on targeting the growing Indian omega-3 market.

Indian Omega-3 Market Opportunity

With India's rapidly growing economy creating a large and growing middle-class, the demand for health and wellness products such as omega-3 oils is also growing. According to a report by Frost & Sullivan, India's retail nutraceutical market, growing at a CAGR of 16% is forecast to be worth $5B next year of which approximately one third are dietary supplements. Omega-3 fatty acids only comprise 5% of the Indian dietary supplements market due in large part to the source of omega-3 supplements primarily being fish oil based. India has the largest vegetarian population in the world with 30% of India's 1.3B population being strict vegetarians.

The challenge for the omega-3 market in India is the source and supply of vegetarian omega-3 ingredients, which currently come from low quality flax seed oil and only a few algal based omega-3 ingredient suppliers. Thus, the opportunity exists for BlueOcean's high quality, low cost AlgaOmega™ oil to enter the Indian market.

"BlueOcean's strategy of forming partnerships with large strategics to commercialize its AlgaOmega™ oil lends itself perfectly to the Indian market where many of the large nutraceutical and pharmaceutical ingredient manufacturers have identified the vegetarian omega-3 market as a high growth opportunity," said BlueOcean's CEO, Gavin Bogle.

Long Lane CFO, Ken Patel added, "Long Lane has a track record of sourcing high quality nutraceutical and pharmaceutical ingredients in India, and introducing BlueOcean's AlgaOmega™ oil fits perfectly with Long Lane clients' vision for the Indian omega-3 supplements market."

As announced in a press release dated October 20, 2014, and approved by the TSXV, the Company has issued 3,750,000 Common Shares representing $750,000 for the Licence initial upfront payment, at a deemed price of $0.20 per Share. The Shares issued are subject to a four month plus one day hold period.

After the issuance of the Shares the Company will have 54,467,693 Common Shares issued and outstanding.

About BlueOcean NutraSciences Inc.

BlueOcean NutraSciences Inc. is a Canadian listed public company (TSXV:BOC) that is focused on developing sustainable, specialty nutraceutical oil products targeted at the rapidly growing Natural Astaxanthin, Krill oil and Omega-3 Algal oil health and wellness markets.

BlueOcean is developing two specialty oil products: AstaShrimp™ and AlgaOmega™. BlueOcean owns 50% of the participating and voting rights in 70717 Newfoundland and Labrador Ltd, a joint venture with a major Atlantic Canada shrimp processor that provides the shrimp feedstock for the extraction of AstaShrimp™, and BlueOcean wholly owns its AlgaOmega™ product line.

The natural oils to be used in AstaShrimp™ contains very high levels of naturally occurring astaxanthin, phospholipids, and omega-3 EPA and DHA. AstaShrimp™ will be targeted at the high value and rapidly growing natural astaxanthin market which is expected to grow to over $700M by 2017. AlgaOmega™ oil is a vegetarian, non-GMO omega-3 algal oil containing high levels of EPA with DHA and is targeted at the rapidly growing omega-3 algal oil ingredient market that is currently valued at $500M and growing at 14% CAGR.

About Long Lane Canada Ltd.

Long Lane Canada is a Canadian company offering opportunities for Canadian and Indian companies with synergies to partner together in joint venture and licensing structures for the production and marketing of pharmaceutical and nutraceuticals products. Long Lane offers these opportunities through its affiliated partner companies: NRK Medical Research and Pavitra Healthcare. The company is well diversified in pharmaceutical packaging, retail pharmacy, clinical research and medication logistics, and operates in Canada, the UK and India. Since its inception, the company has leveraged its Indian presence to source nutraceutical and pharmaceutical products directly from Indian pharmaceutical manufacturers for the North American market through its Indian subsidiary, Pavitra Health Care. The company also offers clinical evaluation services for North American nutraceutical and pharmaceutical products in India through a Canadian subsidiary, NRK Medical Research.

Forward Looking Statements

This news release may contain forward-looking statements that are based on BlueOcean's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • BlueOcean NutraSciences Inc.
    Gavin Bogle

    BlueOcean NutraSciences Inc.
    Dil Vashi
    Manager Corporate Development