Agriculture and Agri-Food Canada

MONTMAGNY, QUEBEC--(Marketwire - Sept. 4, 2008) - The Government of Canada is committing up $2.9 million in repayable funds to promote a unique process of delivering active components from organic baby spinach for use in new cosmeceutical products, announced Mr. Steven Blaney, Member of Parliament for Levis-Bellechasse, on behalf of the Federal Agriculture Minister Gerry Ritz.

"This Government is making smart investments that will lead to new opportunities for our agriculture sector, additional jobs in our rural communities, and greater profits for our farmers," said Mr. Blaney. "This project will help link organic spinach producers to cosmeceutical manufacturers in Canada and other markets."

Once an agreement is signed, the funding will help PureCell Technologies Inc. to construct a 10,000 square foot extraction and cosmeceutical manufacturing facility in Montmagny, Quebec. The new facility will enable the company to extract, purify, stabilize and condition the molecular compounds responsible for the photosynthetic process in baby spinach. These compounds have demonstrated anti-oxidant and anti-inflammatory properties and have been used to develop cosmeceutical products such as sunscreen lotion and two anti-aging creams.

Under the project, PureCell Technologies will also establish a quality management program for Canadian organic spinach producers and is expected to create 20 direct and 60 indirect jobs. Additionally, the project is expected to generate over $1 million in company revenue in 2009, and over $22 million by 2012.

"As a business person, it is very stimulating to be able to count on the collaboration of competent, passionate people like those who work for Agriculture Canada. Such a relationship between informed individuals is particularly important when a company, such as PureCell Technologies, is entering an entirely new area, in our case the development and manufacturing of botanical drugs," said Dr. Andre P. Boulet, President and CEO, PureCell Technologies Inc.

This project is supported under Agriculture and Agri-Food Canada's (AAFC) Agri-Opportunities Program which enhances the competitiveness and prosperity of our agricultural sector by supporting the commercialization of new innovative agri-products, processes and services. For more information on the Agri-Opportunities program, please visit www.agr.gc.ca (under Programs and Services).