TORONTO, ONTARIO--(Marketwire - June 7, 2012) - BioExx Specialty Proteins Ltd. (TSX:BXI), the first company to commercialize a new and complete food-grade protein from a major global crop in 50 years, announced today that it has received a Commitment Letter from Romspen Investment Corporation ("Romspen") for the provision of a $6,400,000 term debt facility, to improve the Company's financial strength and working capital position. The Romspen loan will provide increased flexibility and a more solid footing for the Company as it continues its progress on its key mandates. Efforts and resources remain focused, and progress continues, on the final stages of external engineering scale-up work for its Saskatoon plant, as well as completion of a strong strategic partnership transaction or transactions.
Proceeds of the Romspen loan will be used to pay out the Company's existing debt facility with Farm Credit Canada, in the amount of approximately $4,000,000, with the balance to be used for working capital and general corporate purposes.
Romspen will have a first secured interest in the Company's Saskatoon plant and a general security agreement covering the balance of the Company's assets. The Romspen loan is a one-year term debt facility, with interest accruing at 12% during the term, and the principal amount and accrued interest due at maturity. Romspen has also been granted 10,000,000 share purchase warrants with a term of 5 years and an exercise price equal to $0.088, based on the 10-day volume weighted average trading price of the Company's common shares as at June 5, 2012. Closing of the loan facility is subject to customary conditions on similar transactions and is expected to occur on or about June 19, 2012.
"We remain on course in the execution of our strategy, and are pleased to be bolstering our cash position to provide greater strength and flexibility as we move forward through scale-up engineering and our strategic partner process," said BioExx CEO, Chris Schnarr.
About BioExx Specialty Proteins Ltd.
Headquartered in Toronto, Canada, BioExx is focused on the separation of oil and high-value proteins from oilseeds for global food, beverage, nutrition, and other markets. BioExx employs trade secret, patented and patent-pending technologies that utilize significantly lower temperatures than conventional oilseed processing, in order to enable the improved separation of proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint.
To find out more about BioExx Specialty Proteins Ltd. (TSX:BXI), please visit www.bioexx.com.
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's plant construction and operation. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from BioExx's expectations and projections.