TSX symbol: SBS
CALGARY, Oct. 17 /CNW/ - Botaneco, a business unit of SemBioSys Genetics
Inc. (TSX:SBS), today announced that it has reached an agreement with AVAC
Ltd. for $2.4 million in non-dilutive funding for the development of Botaneco
as an independent business. The funding will be paid in installments over a
27-month period, beginning in the fourth quarter of 2007, upon the formation
of Botaneco as a separate legal entity and the execution of development and
"We believe this funding will contribute towards our strategy for
Botaneco to operate independent of SemBioSys and provide the opportunity for
it to grow and advance its commercial strategy. With the recent commissioning
of the commercial manufacturing facility and the launch of Botaneco's
Hydresia(TM) product earlier this month, the AVAC funding will allow us to
continue the momentum we are building with the Botaneco business," said Andrew
Baum, President and CEO of SemBioSys Genetics Inc. "Historically, AVAC has
supported a number of programs at SemBioSys and their commitment to Botaneco
demonstrates the opportunity we believe exists for our oilbody-oleosome
technology in the personal care and topical ingredients market."
In return for the funding, Botaneco has agreed to provide AVAC a modest
royalty, by industry standards, beginning in December 2009 on all gross
revenues derived by Botaneco in arrears until an aggregate return up to a
maximum of two times the gross amount invested by AVAC has been remitted.
About Botaneco (www.botaneco.ca)
Botaneco, a business unit of SemBioSys, will manufacture and market
branded lines of high performance, naturally derived base emulsions and
delivery systems used in the development of cosmetics, personal care and
prescription topical/dermatology products. Botaneco is leveraging SemBioSys'
proprietary technology, a first-in-class, all-in-one system for
emulsification, skin barrier protection and superior hydration and absorption
of nutrient rich moisturizers and emollients as well as enhanced performance
of skincare actives.
About SemBioSys Genetics Inc. (www.sembiosys.com)
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company
developing protein-based pharmaceuticals for metabolic and cardiovascular
diseases. The Company's lead pharmaceutical candidates, produced in the plant
host safflower, are recombinant human insulin to serve the rapidly expanding
global diabetes market and Apo AI, a next generation cardiovascular drug. In
addition to its pharmaceutical products, SemBioSys is developing a series of
non-pharmaceutical products addressing human topical, nutritional oils and
animal health markets.
About AVAC (www.avacltd.com)
AVAC Ltd. is a not-for-profit company dedicated to accelerating the
growth of agrivalue(TM) in Alberta. AVAC invests in innovation ideas that add
value to agricultural commodities through coaching, knowledge, contacts and
financial resources. AVAC's mission is to help accelerate the growth of
agrivalue(TM) in Alberta. Created in 1997, AVAC has to date committed over
$43,000,000 to agrivalue(TM) initiatives.
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words "believe",
"may", "plan", "will", "estimate", "continue", "anticipate", "intend",
"expect" and other similar expressions which constitute "forward-looking
information" within the meaning of applicable Canadian securities laws.
Forward-looking statements reflect the Company's current expectation and
assumptions, and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those anticipated. These
forward-looking statements involve risks and uncertainties including, but not
limited to, changing market conditions, the successful and timely completion
of clinical studies, the establishment of corporate alliances, the impact of
competitive products and pricing, new product development, uncertainties
related to the regulatory approval process and other risks detailed from
time-to-time in the Company's ongoing filings with the Canadian securities
regulatory authorities which filings can be found at www.sedar.com. Given
these risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking statements either
as a result of new information, future events or otherwise, except as required
by applicable Canadian securities laws.
For further information:
For further information: SemBioSys Genetics Inc., Mr. Andrew Baum,
President and Chief Executive Officer, Phone: (403) 717-8767, Fax: (403)
250-3886, E-mail: email@example.com, Internet: www.sembiosys.com; Investor
Relations, Ross Marshall, The Equicom Group Inc., Phone: (416) 815-0700 (Ext.
238), Fax: (416) 815-0080, E-mail: firstname.lastname@example.org