- Investment enables SemBioSys subsidiary to accelerate commercialization of personal care ingredients with its proprietary oleosome-based technology
TSX symbol: SBS
CALGARY, June 30 /PRNewswire-FirstCall/ - Botaneco Specialty Ingredients Inc. ('Botaneco'), a wholly-owned subsidiary of SemBioSys Genetics Inc. ('SemBioSys'), today announced that it has entered into an agreement for a $4.0 million convertible debenture financing with Avrio Ventures Limited Partnership ('Avrio Ventures'). Along with $2.4 million previously committed from AVAC Ltd., the funding will be used to accelerate Botaneco's commercialization of Hydresia(TM) products that target the personal care and topical ingredients markets. In consideration of prior investments made, SemBioSys received debentures from Botaneco totaling $5 million. Excluding the SemBioSys debentures, the transaction assigned Botaneco a pre-money valuation of $12.5 million.
"This transaction provides Botaneco with the financial resources necessary to aggressively pursue opportunities in the personal care, over-the-counter (OTC) and topical pharmaceutical markets completely independent of SemBioSys. This is the latest in a series of steps we have made to provide Botaneco with the technology, people and capital to operate as a separate entity and achieve its full potential. It also allows SemBioSys to focus its resources specifically on our pharmaceutical pipeline," said Andrew Baum, president and chief executive officer of SemBioSys. "Dozens of companies are now developing consumer products with Hydresia(TM), and we expect to see a further array of product launches based on these ingredients in the coming quarters."
Hydresia(TM), a natural product, is derived from safflower seeds and offers unique functionality and aesthetic properties without compromising performance. Strategically positioned to lead the natural personal care movement, Hydresia(TM) is an effective replacement for synthetic, petroleum- and animal-derived ingredients in a variety of product categories.
"The company's proven products and established relationships with personal care consumer companies, combined with its robust technology platform and seasoned management team, create a strong competitive advantage," said Aki Georgacacos, Partner of Avrio Ventures and new board member of Botaneco. "The double-digit annual growth in the natural personal care segment makes it one of the fastest growing markets for global personal care products. The company's oleosome technology is well positioned to capitalize on this trend away from petroleum and other synthetic ingredients. We are very excited to assist Botaneco in both expanding its ability to meet the growing demand for its existing products as well as to exploit opportunities for further product development in the topical OTC market."
AVAC, Avrio Ventures and SemBioSys have agreed to allow other investors to participate in the convertible debenture financing through subsequent subscriptions for a period of 120 days, up to a maximum of $4.5 million in additional proceeds.
About Botaneco Specialty Ingredients Inc.
Botaneco is the global developer and marketer of innovative oleosome-based ingredients to the personal care and OTC topical markets. As a technologically driven provider of high performance, proprietary oleosome-based ingredients, Botaneco is committed to developing innovative ingredients that offer multifunctional, tangible and documented benefits to both formulators and consumers. Botaneco's head office and manufacturing facility is located in Calgary, Canada and its satellite office in Bensalem PA. More information is available and can be accessed at http://www.botaneco.ca.
About SemBioSys Genetics Inc.
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company developing protein-based pharmaceuticals for metabolic and cardiovascular diseases. The Company's technology platform allows for the production of pharmaceutical proteins in an easily scalable, very low cost (in terms of both capital and COGS) manner. The Company's lead pharmaceutical candidates, produced in the plant host safflower, are recombinant human insulin to serve the rapidly expanding global diabetes market and Apo AI(Milano), a next generation cardiovascular drug. SemBioSys also owns Botaneco Specialty Ingredients Inc., a supplier of specialty ingredients to the personal care and topical OTC and Rx markets. More information on the company can be found at http://www.sembiosys.com.
About Ventures Management Corporation
Avrio Ventures is a venture capital firm that supports the development of Canadian commercialization and growth stage industrial bioproducts, nutraceutical ingredients and food technology companies into world-class organizations. http://www.avrioventures.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions and market size, the acceptance of an IND by the FDA in respect of clinical studies and the successful and timely completion of clinical studies, the fact that Apo AI is currently a development stage drug, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at http://www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
|SOURCE SemBioSys Genetics Inc.|
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