QUEBEC, Sept. 6, 2012 /CNW/ - Botaneco Corp. ("Botaneco") (TSXV: BOT), a
leading natural specialty ingredients company providing key ingredients
to the food and personal care industries, today announces that it has
made the following decisive changes to its management and board
structure with immediate effect. This will address the need to become
internally cash flow positive without having to seek outside equity
funding or partnerships until the Corporation's true worth is
appreciated by the marketplace.
Mr. David Edwards is appointed as Chairman of the Board ("Chair") in
place of Dr. Nam Fong Han who steps down to meet governance and
regulatory requirements. Dave joined the Board of Botaneco on October
7, 2011 as an independent director in connection with the 2011 Natunola
Health Inc. ("Natunola") merger with Advitech which became Botaneco. He
brings broad business and financing experience to the Board, gained
over the past 40 years both in Canada and internationally. His
background will greatly strengthen Botaneco's efforts to explore all
internal and external avenues for growth.
Dr. Nam Fong Han is appointed as Chief Executive Officer ("CEO") of the
Corporation and will also remain Chief Operating Officer ("COO"). Dr.
Han was instrumental in starting and running Natunola until the merger
with Advitech and so brings a wealth of operational and technical
experience to the Corporation .
The Board also mandated the constitution of a Restructuring Committee,
reporting to the Board of Directors, which is mandated to take the
short-term actions required to effect the turn-around. The Committee
will be headed by David Edwards and initial include Dr. Han and Murray
Bruce, the Chief Financial Officer ("CFO").
The Board of Directors has also agreed that Avrio can nominate an extra
Board member in return for its agreement to provide tangible funding
support and/or facilitation during the restructuring period. Ron Gordon
has tendered his resignation as a board member in part to assist in
this regard. The Board thanks Ron for his valuable advice and support
over the past few years.
"Together with AVAC and AgeChem, our major funding partners in Botaneco,
we are pleased that the Board is taking the decisive steps necessary
for long-term survival and growth." stated Aki Georgacacos, a Partner
at Avrio Capital, which is the Corporation's largest shareholder.
"I am looking forward to this challenge with high hopes of successfully
bridging the gap to internal profitability and growth" states David
Edwards, Chair, who a significant Botaneco shareholder. "I have been
involved in many corporate activities over the years and must say that
I have seen few cases where the difference between the long-term
potential, now beginning to be realized, and the current situation is
so stark. I would like to thank Ms Michelle Scarborough as the outgoing
CEO for her untiring efforts during the past months, particularly in
equity fund raising, which have unfortunately not proved positive given
marketplace conditions and internal challenges. We hope she can
continue to assist us once the real value of the Corporation is
"I am glad to be a part of the challenge ensuring long-term corporate
stability" states Dr. Nam Fong Han CEO who is also a major shareholder.
"This will greatly help in achieving significant growth at Natunola
Division particularly with the recent announcement of our partnership
with a major multinational nutritional company, as announced in the
Press Release of August 23, 2012."
About Botaneco Corp.
Botaneco Corp is a world leader in the development of natural specialty
ingredients and technologies that meet tomorrow's needs, today. The
Company's true expertise is turning Mother Nature's energy source, the
Seed, into high value proprietary ingredients sold into food and
personal care products worldwide. Headquartered in Calgary, Alberta,
the company operates two state of the art manufacturing sites in
Alberta and Ontario with a robust research and development capability.
The Company has developed, patented and commercialized a suite of
technologies, and has over 200 customers today. The company has been
awarded the Canadian Agri-Food Award of Excellence for its flaxseed technology marketed in the natural food industry.
Botaneco holds patents for its Hydresia Oleosome, Vegetable Oil Gel,
Whey Protein and Flaxseed De-hulling technology.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Botaneco Corp.
For further information:
Kevin Richardson, PhD
President & CEO