A short history of the extraction methods and some possible scenarios for BXI
We all know that heat “denatures” or degrades the functionality of Proteins
The premise of the BioExx superiority extraction method was to NOT use high heat (as used in large Canola OIL pressing companies like Bunge ) or to use a toxic solvent like hexane as is used in Soy Protein Extraction.
Our company Bio-Extraction (pre BioExx) promoted the use of a non toxic solvent (HFC-123) at LOW temperatures as a panacea to obtain high quality Protein Isolates (Isolexx and Vitalexx). This ability would be invaluable (sp over $ 2.50)
However, Bio-Extraction became Bioexx and by June 2011 had produced only Advantexx (lower quality) using this solvent and from July 2011 to Nov 2011 the failure was realized. Over 10 million in equipment was auctioned at 5 % value.
Next, BioExx after Nov 2011 used a “suddenly discovered” new water only with enzyme method that depends on SLOW LOW TEMPERTURE extraction to obtain high quality Isolexx or Vitalexx. This was difficult to do and the proof was the failed “asymptotic incremela increase of production” as promised by CS from Nov 2011 to Feb 2012. Mothballed to conserve cash
The new BioExx water based extraction requires more expensive equipment and to be profitable the plant has to be scaled up (as per GEA report) and requires novel expensive equipment (65 million for a 40,000 ton plant to produce 4,000 tons of protein at $ 10,000 per ton sale and 40 million actual revenue before the costs and expenses of production))
Remember that a plant of 40,000 tons Canola oilseed gives only 25 % protein residue or 10,000 tons after oil press and of that only 40 % is recoverable as protein which is 4,000 tons).
Therefore, there can not be a module that could be added to any existing large high heat Canola Oil extraction plants.
The Saskatoon plant is dysfunctional and it would be cheaper to start fresh with German made equipment and with German engineers and who needs the current useless management.
If novelty approval is given in the EU by July 2013 and the BXI cash position is precarious at that time a prudent business plan by a suitor would be :
- Pay a high price for a buyout for all the shares and options and debentures and accrued debt obligations and have a NEW company. BXI shareholders win.
- JV with a bloated share structure failed company along with their high priced management and then have to share in the future earnings. Two companies become one. BXI shareholders win.
- Wait a few more months for imminent cash burnout and deal with the creditors in possession and pick up all the worthwhile assets and patents for minimum amount. New company. BXI shareholders get screwed.
Do you think the public shareholders will be considered in the proceedings and will they be compensated for their long long wait and their investment or will they be excluded.? The management could get a side sweetheart deal as “advisers”
In the stock market and in business the big guys always win and the little guys always lose.