ARBORFIELD and SASKATOON, SK, April 24 /CNW/ - Can Pro Ingredients Ltd.
("Can Pro" or the "Company") announced today that it has commenced operations
following a series of transactions as outlined below.
The Company acquired the business assets and operations of Arborfield
Dehy Ltd. ("ADL"), licensed proprietary canola processing technology from MCN
BioProducts Inc. ("MCN") and arranged equity and debt financing from a
syndicate of investors including Victoria Park Capital Inc., Golden
Opportunities Fund Inc., GrowthWorks Capital Ltd., Farm Credit Canada and
Business Development Bank of Canada to transform ADL's existing alfalfa
processing plant into an agricultural processing facility that will
manufacture an array of canola and alfalfa based products. The aggregate value
of the acquisition, licensing and financing transactions was $18.75 million.
Can Pro will use MCN's patented technology to manufacture canola protein
concentrates, fiber and carbohydrate fractions for the feed industry. The
Company will also manufacture feed grade canola oil which can be used in
aquafeeds, animal feeds and biodiesel manufacture. Can Pro will continue to
operate the dehydrated alfalfa business carried on by ADL for the past 36
years, but has the ability to combine canola fractions with alfalfa streams to
provide new and differentiated product lines. The Company also has access to
MCN's second generation of canola technology for feed and industrial products,
which it plans to introduce after successful commissioning of the new plant.
Todd Lahti, President and CEO of Can Pro, called the new venture a
"synergistic combination of existing infrastructure and new technology. The
combined operations are larger, more diversified and more flexible than either
alone. This is a new value added processing model that accesses multiple input
crops, maximizes infrastructure utilization, injects proprietary technology
and produces a diversified product line for international feed and industrial
markets. This model, combined with unique local inputs, provides risk managed
sustainable competitive advantage for our new company. If bio-refining is the
wave of the future, this is an important step."
Dave Edwards, General Manager of Can Pro and former General Manager of
ADL said, "We were seeking ways to diversify the operations and markets for
our plant. We found a home grown canola technology, invented at the University
of Saskatchewan and commercialized by MCN, to employ in our dense canola
producing region. It was a natural fit."
While it will take a year to construct the new plant and commence
commercial production of the new canola protein concentrate, the product has
already received significant attention from shrimp, trout, salmon and piglet
feed manufacturers looking to replace fish meal in their formulas. Fish meal
is an important component of feeds, but supply has not kept pace with rapidly
growing demand in the aquaculture industry.
The Company has also attracted attention from biofuels manufacturers who
have byproduct streams in need of further processing. The company's 'total
seed utilization' and 'multiple input materials' approach to canola and
alfalfa provide a model for economic viability for the biofuels industry.
Note: Certain of the statements in this press release are forward-looking
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company or industry results, to be materially different from any
future results, performance or achievements expressed by such forward-
For further information:
For further information: Todd L. Lahti, President & CEO, Can Pro
Ingredients Ltd., Saskatoon: (306) 651-1930, Arborfield: (306) 769-8622,