(via Thenewswire.ca)
Ottawa, ON / TheNewswire / Apr 14 2016 - Avivagen Inc. (TSXV: VIV, OTC Pink: CHEXF), a life sciences company commercializing products to replace the antibiotics used in livestock feeds, announces a proposed collaboration with the Jintai group of companies ("Jintai") for a joint venture to commercialize OxC-beta(TM) Livestock in the People's Republic of China ("China"). Jintai is a widely-diversified company that is formally known as Shaanxi Jintai Mining Co. Ltd.
The terms of the non-binding term sheet ("Term Sheet") executed by the parties would create a Sino-Canadian joint venture company ("JV") based in the city of Xi'an, Shaanxi Province. The purpose of the JV will be to register and commercialize OxC-beta(TM) Livestock ("OxC-beta") in China, initially for use in poultry and swine. The Term Sheet contemplates a JV that is owned 51% by Jintai and 49% by Avivagen, with a shared board and decision-making. On creation of the JV, the Term Sheet specifies that Jintai will invest up to RMB 6.0 million (C$1.2 million) to fund activities relating to the registration and commercialization of OxC-beta in China.
Mr. Shen Xiaobo, President of Jintai, commented on its decision to invest in commercializing OxC-beta(TM) Livestock, "Elimination or reduction of antibiotic use in livestock feed is important to all of China and results from multiple trials indicate that OxC-beta should enable this goal to be achieved. We are pleased to be establishing this JV with Avivagen and expect it will achieve great success - to the advantage of both China and Canada."
Cameron Groome, C.E.O. & President of Avivagen added, "Avivagen is delighted to be working with Jintai to register and commercialize OxC-beta throughout China. The resources and expertise of Jintai and the proposed JV should accelerate the required processes and help make this important new product widely available to Chinese feed and livestock producers."
The proposed transaction is conditional upon and subject to completion of definitive documentation acceptable to both parties. There is no assurance the proposed JV will receive all required approvals or be structured on the terms indicated in the Term Sheet, if at all.
About China and Jintai
Jintai is a private diversified company active in mining, engineering, materials and construction, utilities, textiles, electronics, auto parts, property management and investment management. Jintai is based in Xi'an, the home of one of China's leading agricultural universities (Northwest A&F). Its corporate values include sincerity, professionalism, innovation and working to establish win-win business ventures.
China is said to be the world's largest market for formulated feeds, using an estimated 180 million metric tons in 2015. The species initially-targeted by the JV, swine, broiler poultry and layer hens, are estimated to consume 84% of that feed. Animal counts are estimated to be 500 million swine, eight billion broilers and two billion layers, raised in many of China's provinces and autonomous zones, including Shaanxi.
About Avivagen
Avivagen Inc. is a life sciences company listed on the TSX Venture Exchange under the ticker symbol "VIV" and on OTC Pink as "CHEXF." It is developing scientifically-proven products for replacing antibiotics in livestock feeds and to otherwise benefit human and animal health. Avivagen is based in partnership facilities of the National Research Council of Canada (NRC) - in Ottawa, Ontario and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com.
About Avivagen's Technology
Avivagen's proprietary and patented technology derives from its discovery that carotenoid oxidation produces oxygen copolymer products that have beneficial immunological properties. Avivagen's commercial-stage application of its inventions is fully oxidized beta-carotene ("OxBC") which forms the basis for OxC-beta(TM) Technology ("OxC-beta"). Avivagen has discovered that OxC-beta helps an animal maintain and enhance its health by supporting immune function and calming excess inflammation. Avivagen is developing OxC-beta to replace the antibiotics used for growth promotion and disease prevention in livestock feeds, to enhance quality of life of companion animals and to help maintain optimal health in humans. Avivagen's commercial products are OxC-beta(TM) Livestock (Kingdom of Thailand), Vivamune(TM) Vital Health3 Chews (U.S.) and Oximunol(TM) Chewable Tablets (U.S.).
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "aim", "anticipate", "appear", "believe", "consider", "could", "estimate", "expect", "if", "intend", "goal", "helps", "hope", "likely", "may", "plan", "possibly", "potentially", "pursue", "seem", "should", "whether", "will", "would" and similar expressions. Statements or assumptions about the proposed business terms of a potential joint venture as described in a non-binding term sheet, whether or not the JV will be established at all, whether the terms of the JV set out in the non-binding term sheet will be reflected in the definitive documentation, whether the JV will be able to market and sell OxC-betaTM Livestock in China, the uses of the technologies described in this news release, including their importance to animal or human health, their novelty, safety, efficacy or affordability, statements about China or Jintai or the potential JV, corporate goals or management's opinions, are all forward looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Such Avivagen risks and uncertainties include, but are not limited to, the following: whether definitive documentation regarding the JV will be as agreed by the parties in the non-binding term sheet, if at all, whether the parties and the JV will obtain relevant regulatory and government approvals to establish the JV and sell OxC-Betatm Livestock; the size of the Chinese market; Avivagen's ability to continue as a going concern; the fact that results of ongoing or future trials of Avivagen's OxC-betaTM Livestock may not be positive or sufficiently positive; even if the results of trials are positive, there is no guarantee that Avivagen's products will be commercially successful or that requisite regulatory approvals will be obtained; the timing and results of trials may be delayed or may not be completed at all; and intellectual property rights may prove inadequate to protect Avivagen's inventions. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
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.
For more information:
Avivagen Inc.
Cameron Groome, CEO & President
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164 Website: www.avivagen.com
Copyright (C) 2016 Avivagen Inc.
OxC-beta(TM), Vivamune(TM) and Oximunol(TM) are trademarks of Avivagen Inc.
Renmark Financial Communications Inc.
Bettina Filippone - bfilippone@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989 - www.renmarkfinancial.com
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