Bio-Extraction Inc. (TSX VENTURE: BXI) ("BioExx" or "the
Corporation") announced today its financial results for the quarter
ended March 31, 2009. Complete financial statements and
Management's Discussion and Analysis have been filed for public
review at www.sedar.com.
"The first quarter of 2009 was marked by a final push to get our
Saskatoon plant into operation, which occurred on February 29. The
Saskatoon team did an excellent job overcoming several engineering
issues to achieve initial production and they then spent much of
March making final equipment adjustments and fixes to allow for
steady-state operations to being in earnest in early April," said
Chris Carl, BioExx CEO. "Since then, we have moved to full 7/24
operations and made strong progress in a number of areas, and
continue to trend very positively on all metrics in our drive
towards profitability."
From the commencement of commercial sales on April 1, efforts
have been focussed in three successive areas, namely product
quality, oil yield, and seed throughput.
- Product quality of meal has increased dramatically since
initial production with selling prices having more than doubled in
the past two months, to a point where meal is now selling at a
premium to standard commodity meal prices. Oil quality has also
improved markedly, with pricing now near or at standard commodity
rates, with an expectation that pricing could surpass commodity
levels in the near term.
- Oil yields from seed have increased from 50% initially to an
average of near 80%, thus meeting all expectations for Phase 1
operations.
- Finally, throughput volumes of seed are currently at about 50%
of final capacity, with a clear plan to reach full capacity over
the coming weeks as some Phase 2 equipment is installed.
The net result of these improvements is an 80% month-over-month
revenue growth from April to May, and an anticipation of similar
revenue growth over the next two months.
"In addition to concentrating on maximizing revenue and margin
from our Phase 1 operations, we are also making excellent progress
toward implementation of the Extraction and Protein phases of
production (Phases 2 and 3) and we remain very optimistic about the
added revenue and margin that will be achieved in these key areas,"
said Chris Carl.
Expenses
The Corporation incurred expenses of $1,064,090 during the first
quarter of 2009, versus $1,059,427 in the prior quarter and
$808,002 in the comparable prior year period. The small increase
results from increases in Office and general expenses as a result
of the continued intensification of the Corporation's activities,
together with the inclusion of Plant Commissioning and Start-up
expenses for operations at the Saskatoon plant prior to
commencement of product sales. These two increases are netted
against a reduction in Stock-based compensation versus the
comparable prior year period, as a result of fewer stock option
issuances this quarter.
Interest Revenue
During the quarter, the Corporation earned $10,996 of interest
revenue, from interest-bearing marketable securities. This is down
from the prior quarter and comparable prior year period, as a
result of the reducing cash balances held by the Corporation which
accrue to continued capital spending towards completion of the
Saskatoon facility.
Net Loss
The Net Loss for the quarter was $1,054,823, compared to
$1,008,178 in the prior quarter and $750,827 in the first quarter
of 2008, with changes flowing primarily from the same factors
driving changes in Expenses as discussed above. On a per share
basis, the Net Loss is $0.01 for each period.
Working Capital and Liquidity
As at March 31, 2009, current assets were $3,895,293, including
cash of $1,762,582. Against current liabilities of $2,300,593, this
results in net working capital of $1,594,700 (exclusive of
availability of additional funds under the Corporation's various
credit facilities). This compares to current assets of $5,277,238
and net working capital of $3,681,929 at December 31, 2008. The
relatively large Accounts Payable balances, at December 31, 2008
and March 31, 2009 relate primarily to planned capital expenditures
on the Saskatoon plant. Subsequent to quarter end, on May 14, the
Corporation closed a private placement for gross proceeds of
$5,304,000.
About Bio-Extraction Inc.
Headquartered in Toronto, Canada, BioExx is a leading technology
company focused on the extraction of oil and high-value proteins
from oilseeds for the global food market. BioExx' patented
technology allows for the use of significantly lower temperatures
than conventional methods in extracting the active ingredients and
oils from oilseeds, resulting in higher yields and higher-quality
meal, oils and proteins. BioExx' low energy requirements,
environmentally sound process, and high-yield production have the
potential to make a valuable contribution in alleviating food
scarcity. BioExx operates a commercial scale extraction facility in
Saskatoon, Saskatchewan, and has a mission to construct additional
and larger processing facilities on a global basis. To find out
more about Bio-Extraction Inc. (TSX VENTURE: 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, the demand for BioExx'
products, the availability of funding, and the anticipated costs of
BioExx' 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' expectations and projections.
The TSX Venture Exchange has not reviewed this press release and
neither approved nor disapproved the information contained in this
press release.
Contacts: Bio-Extraction Inc. Chris Schnarr Chief Financial
Officer (416) 588-4442 x111 cschnarr@bioexx.com www.bioexx.com
Investor Relations: Brisco Capital Partners Scott Koyich President
(403) 262-9888 scott@briscocapital.com The Equicom Group Inc. Glen
Williams (416) 815-0700 x272 gwilliams@equicomgroup.com
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