TORONTO, Nov. 15 /CNW/ - Bio-Extraction Inc. (BXI-V) ("BioExx") is
pleased to announce that it has concluded a Memorandum of Understanding
("MOU") with Viterra (TSX: VT) to enter into a definitive Supply Agreement for
the supply of canola seed to the planned BioExx Saskatoon extraction facility.
The key terms of the MOU, to be incorporated into the definitive Supply
Agreement, are as follows:
- Viterra to supply 40,000 metric tonnes of Canada Number 1 canola on
an annual basis, deliverable in accordance with an agreed forecasting
schedule. In the event the BioExx facility exceeds its design
capacity, BioExx has the option to increase the supply to an annual
rate of 50,000 metric tonnes on ninety days notice.
- The term of the Supply Agreement will be five years, automatically
renewing for two successive terms of two years each, unless either
party gives notice of non-renewal.
- Viterra will supply on commercially competitive terms that reflect
market cost, transportation, storage, and other cleaning and handling
costs, plus a fixed administration fee, which fee is set on an annual
basis during the term of the agreement.
- Viterra will be the exclusive seed supplier to the BioExx facility
during the term of the agreement, and shall have first right to
supply future BioExx extraction facilities subject to the parties'
agreement on commercial terms for same in each such instance.
- All deliveries under the Supply Agreement will be subject to the
standard Viterra contract of purchase and sale for each such
- Viterra and BioExx have also agreed to work together on other
business opportunities, including seed and feed research, seed
production, licensing and sales, and specialty product off-take and
merchandising agreements for oil and meal and other by-products
produced at the BioExx facility.
- The MOU remains in force through June 2008, however the parties
intend to move expeditiously to the completion of the definitive
"We are very pleased to have completed this MOU with such an accomplished
and forward looking company as Viterra. Their professional and straightforward
approach to the market fits well with the culture that BioExx has worked hard
to develop, and we look forward to completing the definitive supply agreement
in an expedited manner," said Chris Carl, BioExx CEO and founder. "This
agreement represents another successful and important step towards
construction and operation of our first plant, and to building a strong base
of key long-term partners as BioExx completes its plan to become a leading
producer of specialized, high value products from oilseeds such as canola."
Viterra, formed from the merger of Saskatchewan Wheat Pool Inc. and
Agricore United, is Canada's largest handler of grains and oilseeds, with over
40% market share, more than 100 elevators and 2 million metric tonnes of
storage capacity. Viterra also operates 276 agri-products retail outlets
across the prairies.
"We believe the BioExx technology offers an interesting and compelling
oilseeds extraction platform. Although we are Canada's largest grains and
oilseeds supplier, we also have a strong culture of research and innovation
and we are always looking for opportunities to work with innovators such as
BioExx," said Fran Malecha, Viterra's Chief Operating Officer. "We anticipate
that this will represent the beginning of a long and rewarding relationship
for both companies."
Saskatchewan Wheat Pool Inc., doing business as Viterra, is Canada's
leading agri-business, with extensive operations and distribution capabilities
across Western Canada, and with operations in the United States and Japan. The
new company is diversified into sales of crop input services and equipment,
grain handling and marketing, livestock feed, agri-food processing and
financial products. These operations are complemented by value-added
businesses and strategic alliances, which allow Viterra to leverage its
pivotal position between Prairie farmers and destination customers. The
Company's common shares are listed on the Toronto Stock Exchange under the
About Bio-Extraction Inc.
BioExx is involved in the development and commercialization of extraction
technology, which it intends to use to extract various active ingredients from
organic and inorganic materials, for its own account and as a service to
industrial customers. Global in scope, the BioExx target markets include
extractions in agriculture (primarily oilseeds), alternative energy crops,
pharmaceutical, nutraceutical, and industrial cleansing (eg. specialty
steels). Versus traditional technologies, the patented BioExx technology can
offer lower extraction costs, higher quality extracted materials, and material
incremental revenue opportunities as its extractions can substantially retain
the value of inherent proteins and other sensitive compounds - with all this
being completed in an environmentally responsible manner.
To find out more about Bio-Extraction Inc. (TSX-V: BXI), please visit our
website at http://www.bioexx.com
The TSX Venture Exchange has not reviewed this press release and neither
approved nor disapproved the information contained in this press release. 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,
the demand for BioExx' products, the availability of funding, and the
anticipated costs of BioExx' 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 the
BioExx' expectations and projections.
For further information:
For further information: Chris Schnarr, Chief Financial Officer, BioExx,
(416) 588-4442, x.111, firstname.lastname@example.org; Investor Relations: Scott Koyich,
President, Brisco Capital Partners, (403) 262-9888, email@example.com;
Viterra - Peter Flengeris, Media Relations, Investor Relations and Corporate
Affairs, (306) 569-4810, Website: www.viterra.ca