VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2012) - Functional Technologies Corp. (TSX VENTURE:FEB)(OTCQX:FEBTF) (the "Company") is pleased to announce it has entered an agreement with a global, industry leader in yeast production and technologies (the "Yeast Producer") for the optimization and commercial grade-production of the Company's Acryleast™ acrylamide-preventing (AP) yeasts. This agreement, which also contains certain commercial terms, enables the producer to begin the manufacture of the AP yeasts so that pilot scale volumes can, and currently are being produced and shipped to the Company's food processing collaborators, which collectively represent some of the world's largest and most recognized multinational food companies. Acryleast™ is Functional Technologies' platform solution that has been demonstrated to prevent or reduce the formation of acrylamide, a carcinogenic as well as reproductive and neurological toxic byproduct that is prevalent in many widely consumed food products.
Under this agreement, Functional Technologies has now shipped commercial strains of its Acryleast™ yeasts to the Yeast Producer for scale production. The Yeast Producer has also been granted a non-exclusive right of negotiation to obtain an exclusive license to commercialize the Company's Acryleast™ technologies for specific food sectors, such as in the form of longer term license agreements and/or large scale production and supply of AP yeasts.
The agreement stipulates, that once right of negotiation is triggered, these negotiations are required to be completed within a limited time frame.
Functional Technologies believes that the arrangement for the AP yeasts to be produced in an expedited manner, which requires significant coordination and capital and resource allocation on the Yeast Producer's part, reflects not only a commitment of the Yeast Producer in collaborating with Functional Technologies, but also validates the appeal and significance of the commercial opportunity associated with the Acryleast™ technology.
The scale of Acryleast™ production to be undertaken by this collaboration will enhance the ability of food producers to conduct their own pilot testing to confirm the effectiveness of the Company's AP yeasts, at scale, in reducing acrylamide under commercial processing conditions. Successful confirmation of the performance of Acryleast™ yeasts in a variety of food applications, under industrial conditions, represents an important milestone to drive adoption of the AP yeasts by various industries.
"This agreement, which follows the earlier letter of commitment between the parties, is a significant step towards validating the effectiveness and utility of the Company's innovative and proprietary acrylamide-preventing yeasts at an industrial and commercial level," said Mr. Howard Louie, Chief Business Development Officer of Functional Technologies. "We are pleased to continue to solidify our relationship with this industry leader in yeast technologies and production, and expand the opportunities associated with our proprietary yeast technologies. Obtaining access to the production of our products at a high standard of quality assurance at scale, will allow us to move through pilot scale production runs with our trial partners/customers allowing the product to be fully adopted into their product mix. The news that we are collaborating with a global leader in yeast production for this stage of product testing allows the global food producers with which we are running trials and product integration the comfort that their future needs on any scale in any region can more readily be met from a production capacity requirement."
About Functional Technologies Corp.
Functional Technologies develops and commercializes proprietary, advanced yeast-based solutions to significant challenges in the food, beverage and healthcare industries. The Company's platform improves the performance of innate yeast functions, and prevents the formation of naturally occurring toxins and contaminants that either affect final product quality or are classified by the World Health Organization ("WHO") as probable human carcinogens. Functional Technologies' lead technologies include yeasts that prevent and reduce the formation of foul-smelling hydrogen supplied (H2S) and the WHO classified probable carcinogen, acrylamide - both by-products of food and beverage processing. These contaminants are found in many commonly consumed items, such as fermented food products and alcoholic beverages, and baked and fried foods. For more information, please visit our website at www.functionaltechcorp.com.
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