EDMONTON, Alberta, August 24, 2015 – BioNeutra Global Corporation (CSE: BGA) (“BioNeutra” or the “Company“) is very pleased to announce the successful completion of the purchase of a production plant building of approximately 47,000 square feet comprising of manufacturing and office space situated on 2.65 acres of land in a light industrial area of Edmonton, Alberta (the “Facility”) along with certain chattel property located therein (the “Equipment”) from the an arm’s-length vendor. This purchase transaction was finalized and closed on August 21, 2015 in accordance with the terms of an offer to purchase and interim agreement previously announced on April 24, 2015.
BioNeutra North America Inc., a wholly-owned subsidiary of the Company, acquired the Facility and Equipment for a total acquisition price of $7,850,000 comprising of: (a) $500,000 paid in cash; (b) $100,000.20, paid through the issuance of 166,667 common shares in the capital of BioNeutra (“Common Shares”) at a deemed price of $0.60 per Common Share; (c) a first mortgage in the amount of $6,000,000; and (d) a second mortgage granted by the vendor in the amount of $1,250,000.
The Company will be developing a commercial production line in the Facility to produce functional food and beverage ingredients and products featuring isomalto-oligosaccharide (IMO) using the Company’s patented IMO production processes. This IMO production line will be the first of its kind in North America and will make BioNeutra the exclusive North American producer of IMO products that feature Health Canada and European EFSA approval and FDA GRAS certification. The Facility will also house BioNeutra’s corporate head office and greatly expand its in-house research and development capabilities.
“The purchase of this property represents a major milestone for BioNeutra,” stated Chairman Mr. Bill Smith. “We believe that this Facility, once fully developed, will offer BioNeutra a distinct advantage by substantially increasing the Company’s capacity to research, develop and produce new, innovative and exciting functional food and beverage ingredients and retail products for markets around the world. This Facility will also feature the Company’s training headquarters which will facilitate future global expansion.”
About BioNeutra Global Corporation
BioNeutra is in the business of research and development, production and commercialization of ingredients for nutraceutical, functional and mainstream foods and beverages, with a focus on oligosaccharides.
The Company’s lead product, VitaFiber™, is an advanced functional and health food ingredient scientifically made from natural agricultural products, is generally regarded as safe (GRAS) by the U.S. Food & Drug Administration, and is European Food Safety Authority and Health Canada approved. VitaFiber™ is naturally sweet and lower in calories than regular sugar and is a natural source of dietary fiber as it provides low calorie soluble prebiotic fiber for human digestive health.
The Company produces VitaFiber™ using its patented processes that naturally transforms starch molecules from agriculture cereal crops including corn, wheat, barley, potato, or tapioca into the functional health molecules of isomalto-oligosaccharide (IMO). The VitaFiber™ manufacturing process is based upon a natural enzymatic conversion of starch molecules without any chemical modification involved, making VitaFiber™ a natural food ingredient. VitaFiber™ is also non-GMO, vegan-friendly, gluten-free, Kosher and Halal certified and available as certified organic.
The Company’s customers include a mix of small and medium enterprises and a number of high-profile food manufacturers in Canada, the U.S., Europe, the United Kingdom, and Mexico. VitaFiber™ is also available for retail purchase across the globe through Amazon.com and other direct-to-consumer retailers.
For further information contact:
BioNeutra Global Corporation
Bill Smith, Chairman & Senior Vice President
T: (780) 466-1481 x 117
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of BioNeutra. Forward-looking information is based on certain key expectations and assumptions made by the management of BioNeutra. Although BioNeutra believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because BioNeutra can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. BioNeutra disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.
The CSE has not reviewed, approved or disapproved the content of this press release.