BioExx announces $30.0 million bought deal financing

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

TORONTO, Aug. 9 /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 Genuity Corp., on a bought deal basis, 15,400,000 common shares ("Offered Shares") at a price of $1.95 per Offered Share for gross proceeds to BioExx of approximately $30.0 million (the "Offering"). BioExx has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the Offered Shares on the same terms and conditions, exercisable any time, in whole or in part, up to 30 days after the closing of the Offering, for additional gross proceeds of up to approximately $4.5 million.

The net proceeds of the Offering are intended to be used as may be required to complete and ramp up the Saskatoon facility to 100% of protein capacity; for engineering, development, and initial construction work for the Company's second plant in Minot, North Dakota; for ongoing R&D related to continuous improvement of the Company's technologies as well as related but non-competing markets and technologies that BioExx is pursuing; and for general corporate purposes.

"This financing will allow us to continue along the curve of success marked most recently by first protein production in Saskatoon, while maintaining a strong balance sheet which is important for all shareholders. Commercial scale protein production was a seminal event in our development because it significantly de-risks the core technology thesis and provides a platform for growth and continued achievement of major milestones, both in Saskatoon and North Dakota. While we could not be more pleased with the way the plant has performed in its initial production runs, there is still work to be done in order that we may continue on our path as the world's first commercial producer of food-grade canola protein isolate," said BioExx CFO, Chris Schnarr.

The Offering is expected to close on or about August 24, 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.

    
    About BioExx Specialty Proteins Ltd.
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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, cschnarr@bioexx.com; Investor Relations: Scott Koyich, President, Brisco Capital Partners, (403) 262-9888, scott@briscocapital.com

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BIOEXX SPECIALTY PROTEINS LTD.

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