VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Functional Technologies Corp. (TSX VENTURE:FEB) (the "Company") today announced it has entered into a collaboration agreement with an undisclosed, leading multinational company (the "Partner") to evaluate the Company's proprietary acrylamide-preventing (AP) yeasts in one of several applicable sectors of food-related products.
This preliminary collaboration is a fundamental step in the process of developing partnerships with global firms that possess established and significant capabilities in bioindustrial applications as well as in the manufacture, production and distribution of microorganism-based products. Such partnerships are expected to better position Functional Technologies to accelerate the commercial progression of its novel yeast-based solutions to naturally occurring contaminants and toxins, providing valuable synergistic capacities for the Company.
Under the terms of this initial agreement, Functional Technologies and the Partner will seek to confirm the general and performance characteristics of the Company's AP yeasts, including the ability to reduce the main precursor asparagine to prevent the formation of acrylamide in the pre-specified food sector, and under industrial conditions provided by the Partner. Other multinational companies are able to begin or continue to evaluate Functional Technologies' AP yeasts in this particular food category, as well as the other various applicable food-based sectors. The Partner is granted a right of negotiation to license or commercialize the Company's AP technologies that precludes other commercial agreements in this pre-specified sector during a fixed evaluation period. Functional Technologies retains the rights to negotiate commercial agreements for its AP yeast technologies in all other food applications. Additional terms of the agreement are confidential.
"We are very pleased to have the opportunity to work with one of the world's leading companies with expertise in the food and microorganism industries. This represents a significant milestone for Functional Technologies, as it further confirms the commercial appeal and potential of our AP yeast platform," said Howard Louie, chairman and CEO of the Company. "As we continue to engage with several multinational companies in the various sectors for which our technologies have been developed, our functional products continue to attract the world's largest food and food ingredient companies for field trials and industry adoption development programs. This provides recognition on a global scale for us as a company with innovative yeast-based solutions to industry-wide challenges. Collaborating with several of the leading firms in the food processing and ingredients sectors provide the Company with excellent opportunities to gain rapid access to global distribution networks, international production capabilities, and industry-specific technical expertise."
This news release contains forward-looking statements about Functional Technologies and its future plans. Forward-looking statements are statements that are not historical facts, and in this news release include the statements as to (1) the expectation that partnerships with global firms with microorganism-based products, or in the food processing and ingredient sectors, will better position the Company to accelerate commercial progression of its yeast products; and (2) the expectation that such partnerships will enable the Company to gain rapid access to global distribution networks, international production capabilities, and industry-specific technical expertise. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in, or implied by, the forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty as to the Company's ability to achieve the goals and satisfy the assumptions of management; uncertainty as to the actual demand for the Company's products and the Company's ability to meet such demand; and other factors that may be beyond the control of the Company. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change. Reference to the section entitled "Risks and Uncertainties" commencing on page 15 of the Company's management's discussion and analysis relating to the fiscal quarter ended November 30, 2010, which is available on SEDAR at www.sedar.com.
About Functional Technologies Corp.
Functional Technologies develops and commercializes proprietary, advanced yeast-based solutions to significant challenges in the food, beverage and healthcare industries. The Company's platform improves the performance of innate yeast functions, and prevents the formation of naturally occurring toxins and contaminants that either affect final product quality or are classified by the World Health Organization (WHO) as probable human carcinogens. Functional Technologies' lead technologies include yeasts that prevent and reduce the formation of the foul-smelling hydrogen sulphide (H2S) and the carcinogens acrylamide and ethyl carbamate (more commonly known as urethane), by-products of food and beverage processing. These contaminants are found in many commonly consumed items, such as fermented food products and alcoholic beverages, and baked and fried foods. With a head office in Vancouver, Functional Technologies Corp. has R&D operations in Prince Edward Island and Europe, as well as a U.S. sales office in Napa Valley, California. For more information, please visit our website at www.functionaltechcorp.com.
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