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BioExx hires Ernst & Young for company sale
2013-07-30 07:25 ET - News Release
Mr. Chris Schnarr reports
BIOEXX ENGAGES ADVISOR FOR SALE OF COMPANY
BioExx Specialty Proteins Ltd. has engaged Ernst & Young Orenda Corporate Finance Inc. to undertake a process to explore a sale of the company and, if feasible and subject to shareholder approval, to sell the company.
The previously referenced potential strategic partner has decided not to move forward with the Company, favouring instead a lower risk and more immediate focus on other vegetable proteins that are already commercially available. The Company will continue to pursue other existing opportunities, such as the proposed European plant which remains an active and very attractive project. However, the Board of Directors has decided the prudent course of action is to pursue a parallel process that explores the sale of the Company while sufficient financial resources exist to undertake such a process.
"We've proven the scalability and efficacy of our technology through our work with GEA Process Engineering, we've proven the products through our work with major food and beverage companies, and the protein market is large and growing. Our core protein patent has been granted to protect the technology. The major regulatory approval of FDA GRAS status is in place, and the European Novel Food registration process is in its final stages. Capital is, in essence, the only barrier to bringing to market this new protein of great importance to the world, in fact the most nutritionally and functionally complete plant protein from a major global crop in over 50 years", said Chris Schnarr, CEO of BioExx. "And yet, in this challenging financial environment, we have been unable to secure a strategic partner with the patience and risk tolerance to take the next steps to bring this novel product to market. Given time, we are confident that we could get there. However, our financial resources do not allow us the luxury of pursuing that process to its rightful end. Therefore, while we still have the resources to conduct a diligent sale process, we will proceed with that as the path to realizing the best value for the Company under the circumstances."
Changes to Board of Directors
William Ollerhead has resigned as Chairman and a Director of the Company. John MacDonald, a Board member since 2008, has been appointed Chairman of the Board of Directors. "On behalf of the Board, I would like to thank Will for his tremendous service to the Company, for his commitment and support over the past five years, and in particular through the very challenging times more recently", said Mr. MacDonald.
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