TSX symbol: SBS
CALGARY, Oct. 17 /PRNewswire-FirstCall/ - Botaneco, a business unit of SemBioSys Genetics Inc. (TSX:SBS), today announced that it has reached an agreement with AVAC Ltd. for $2.4 million in non-dilutive funding for the development of Botaneco as an independent business. The funding will be paid in installments over a 27-month period, beginning in the fourth quarter of 2007, upon the formation of Botaneco as a separate legal entity and the execution of development and commercial milestones.
"We believe this funding will contribute towards our strategy for Botaneco to operate independent of SemBioSys and provide the opportunity for it to grow and advance its commercial strategy. With the recent commissioning of the commercial manufacturing facility and the launch of Botaneco's Hydresia(TM) product earlier this month, the AVAC funding will allow us to continue the momentum we are building with the Botaneco business," said Andrew Baum, President and CEO of SemBioSys Genetics Inc. "Historically, AVAC has supported a number of programs at SemBioSys and their commitment to Botaneco demonstrates the opportunity we believe exists for our oilbody-oleosome technology in the personal care and topical ingredients market."
In return for the funding, Botaneco has agreed to provide AVAC a modest royalty, by industry standards, beginning in December 2009 on all gross revenues derived by Botaneco in arrears until an aggregate return up to a maximum of two times the gross amount invested by AVAC has been remitted.
About Botaneco (http://www.botaneco.ca)
Botaneco, a business unit of SemBioSys, will manufacture and market
branded lines of high performance, naturally derived base emulsions and
delivery systems used in the development of cosmetics, personal care and
prescription topical/dermatology products. Botaneco is leveraging
SemBioSys' proprietary techno
|SOURCE SemBioSys Genetics Inc.|
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