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TORONTO, March 15 /CNW/ - BioExx Specialty Proteins Ltd. (TSX: BXI) ("BioExx" or the "Company") announced today that it has entered into an agreement to sell to a syndicate of underwriters led by Canaccord Financial Ltd., on a bought deal basis, 8,150,000 common shares ("Offered Shares") at a price of $1.85 per Offered Share for gross proceeds to BioExx of approximately $15.0 million (the "Offering"). BioExx has also granted the underwriters an over-allotment option to purchase up to an additional 1,222,500 common shares on the same terms and conditions, exercisable at any time, in whole or in part, up to 48 hours prior to the closing of the Offering, for additional gross proceeds of up to approximately $2.3 million.
The net proceeds of the Offering are intended to be used as may be required to continue funding the engineering, development, and construction work for the Company's second plant in Minot, North Dakota, to fund the further development of its proprietary and patent-pending "toasted meal" protein technology, and for general corporate purposes including capital expenditures and working capital associated with its Saskatoon facility.
"We believe the Offering will provide us with greater financial strength and flexibility through protein start-up in Saskatoon, together with an extended ramp-up window during which to demonstrate consistent volume growth, product quality, and customer acceptance. At the same time, we can also continue on plan with the development of our North Dakota facility and other business initiatives," said Chris Schnarr, CFO of BioExx.
The Offering is expected to close on or about March 30, 2010 and is subject to regulatory approval. The Offered Shares will be issued under a short form prospectus and as such will be freely tradable. The Offered Shares will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The Company also confirms that it continues to make strong progress on completing construction of its Phase 2 Protein Isolate facility in Saskatoon. Equipment installation efforts and associated resource allocations are generally proceeding on schedule, with April milestones remaining as the short-term focus.
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 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. Without the extraction of virtually all of the oil at low temperatures, and in the manner developed by BioExx, the protein separation methods would not work. It is the combination of these proprietary processes that has enabled BioExx to develop product profiles that do not infringe either on methods or product profiles developed by others. Through its extensive research and development work, together with an exhaustive review of published and prior art, BioExx is confident that all of its processes and resulting products are unique in the marketplace.
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.
SOURCE BIOEXX SPECIALTY PROTEINS LTD.
For further information: For further information: BioExx Specialty Proteins Ltd.: Chris Schnarr, Chief Financial Officer, (416) 588-4442 x111, firstname.lastname@example.org; Investor Relations: Scott Koyich, President, Brisco Capital Partners, (403) 262-9888, email@example.com