TSX Venture Exchange: FYT
SASKATOON, Oct. 21 /CNW/ - Fytokem Products Inc. (the Company) today
announces that it has accepted a non-brokered private placement investment
proposal. The proposal is a conditional offer to purchase shares from
The primary conditions of this private placement are that existing
debt-holders of the corporation convert their debt instruments to equity. When
completed, the conversions will sharply reduce the interest expenses incurred
and substantially strengthen the Company's balance sheet.
The investment will see new equity of $400,000 on closing and a further
$450,000 over the next three years. The initial investment will result in the
issuance of 8 million shares. The follow-on investment will result in
additional shares being issued over the next three years totaling 2.75 million
common shares. The prices for the new equity will range from $0.05 per share
on closing, to a high of $0.30 for the final transaction. All components of
the transaction are subject to approval by regulatory authorities and the TSX
"We are very pleased with the investment proposal. It will provide a much
needed cash infusion which gives us the opportunity to further grow our
existing markets and help to launch the new products we have been working on",
said Art Hesje, President and CEO. "I'm also pleased to see that our efforts
have attracted the attention of the private investment community."
About Fytokem Products Inc.
Fytokem Products Inc. develops and delivers proven natural ingredients to
leading formulators in the personal care, nutraceutical and pharmaceutical
industries. The Company has been issued patents for technology related to two
of its products and has other patent applications pending.
Fytokem has two product lines currently offered in the market. Canadian
Willowherb(TM) is a multi-function plant extract with strong efficacies as an
anti-irritant, and anti-oxidant that also has application as an acne
treatment. Tyrostat(TM) is a multi-efficacy plant extract sold primarily for
its use as a tyrosinase inhibitor which provides skin-lightening efficacy.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Statements contained in this news release, which
are not historical facts, are forward-looking statements that involve risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Fytokem disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Art Hesje, President and CEO, Fytokem Products
Inc., (306) 668-2552 tel, (306) 978-2436 fax, email@example.com,