Functional Technologies Corp.
TSX VENTURE : FEB

Functional Technologies Corp.

September 18, 2008 08:30 ET

Functional Technologies Provides Update on Rights Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2008) -

NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Functional Technologies Corp. (TSX VENTURE:FEB) is pleased to report that its rights offering circular for the financing announced July 23, 2008 has been filed with the applicable Canadian securities regulatory authorities, as well as the TSX Venture Exchange, for review, comment and approval.

Functional Technologies has also completed and filed the standby guarantee agreements that will, subject to the terms of the agreement, result in 100 percent of the issued rights being exercised, for approximate gross proceeds to the company of $2,800,000.

As previously announced, Functional Technologies intends to issue to each shareholder in permitted jurisdictions, as of a record date to be announced, one right for each common share held by such shareholder. Six rights will entitle the holder to acquire one unit at a price of $0.85 per unit. Each unit will be comprised of one common share and one half of a share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1.25 per share for a period of one year following the issuance of the warrants.

Upon receipt of approval of the rights offering circular and related documentation, which is expected to be completed in a timely manner, the record date will be announced and the rights will trade for a period of 21 days before being halted.

Bolder Investment Partners, Ltd. has been engaged as managing dealer for the rights offering.

About Functional Technologies Corp.

Functional Technologies is a functional foods and biological health products company that develops and commercializes advanced yeast products, and other novel biological products, for the food and the health care industries. The company is currently commercializing a platform yeast technology that substantially reduces the formation of ethyl carbamate (also known as urethane, which has been recently reclassified by the World Health Organization up to a Group 2A carcinogen - the same carcinogen class as lead, mercury, acrylamide and diesel exhaust), from wines and other fermented beverages and foods. Functional Technologies has licensed the exclusive worldwide rights to this technology from The University of British Columbia (UBC). The company is expanding the development of next generation products in this area, as well as evaluating new yeast based technologies with broad commercial market applications. In addition Functional Technologies, through its wholly-owned subsidiary Phyterra Bio Inc., is developing a platform of proprietary biological products, for animal health, utilizing proprietary science in the field of micro-algae.

This news release contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered accurate at the time of preparation, may prove incorrect. The actual results achieved may vary materially from the information provided herein. Consequently, there is no representation by Functional Technologies Corp. that actual results achieved will be the same as those forecast.

The TSX Venture does not accept responsibility for the adequacy or accuracy of this release.

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