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Algae.Tec growth system validated and enters fast growing global nutraceutical market
Date:12/19/2013

re dietary supplements that support physical and mental health.

As part of this strategic opportunity, Algae.Tec has entered into an exclusive Collaborative Agreement with Nutrition Care Laboratories, based in Melbourne, Victoria.

Nutrition Care is a significant manufacturer and marketer of high value nutraceuticals for many of the best know nutraceutical brands in Australia and internationally, with a focus on Asian markets in particular.

The Algae.Tec closed growth system is perfect for nutraceutical products because all inputs can be controlled, producing a consistently high quality product. In addition these Algae.Tec products are free of impurities and all agricultural chemicals, such as pesticides and herbicides.

Chlorella is an increasingly attractive high protein, nutritional food source, which is highly sought after in Asia. B-Carotene is in demand as a nutritional supplement for vision, immunity and overall health.

“This is a significant market opportunity for AlgaeTec. The Asian market in
particular is increasingly prepared to pay a premium for a quality nutraceutical product,” said Stroud.

Anticipated production of Chlorella, and B-Carotene, is expected to be 2,000 tonnes in 2014, up to 4,000 tonnes in 2015, with a target of 8,000 tonnes in 2016, and 10,000 tonnes by 2017.

Indicative wholesale prices for the Chlorella and B-Carotene are currently $16,000 and up to $90,000 per tonne, respectively. The algae is 100% used as the product. A healthy gross margin on revenue is anticipated as capital costs are expected to be in the vicinity of $7,000 per tonne.

The nutraceuticals initiative was prompted by the significantly lower capital required and better anticipated profit margins per tonne of production compared with biofuels, and the very speedy path to production.

Currently, biofuel initiatives are being developed out of the Atlanta facility through the Company's wholly o
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