Functional Technologies has been developing its current pipeline of proprietary yeast technologies for commercial scale-up for over five years. In addition, these technologies were derived from over a decade of research at world-leading institutions including The University of British Columbia's Wine Research Centre and The University of California at Davis' Department of Viticulture and Enology. Moving a new technology from the bench to full commercialization has required significant effort in terms of production protocols, biomass scale-up, transforming multiple strains and developing second-generation technologies. The company also continues to fund an extensive research program designed to discover and commercialize valuable new properties in yeast and algae, nature's microscopic workhorses.
The company's initial two yeast strain products have been in commercial trials as of the fall 2009 wine harvest season and extending into 2010. Additional strains are at varying stages of development to broaden the product portfolio. The company's proprietary yeast technology is a platform technology that enables any yeast strain to activate natural innate attributes in the yeast to prevent the formation of the contaminants H2S and ethyl carbamate in various fermented alcoholic beverages. The same technology is being applied to develop proprietary yeast strains as a solution for the acrylamide carcinogen food-safety issue affecting fried, baked and toasted goods. The company is targeting the high-value and high-margin global yeast markets for the wine and distilled spirits industries, worth an estimated US$1.5 billion worldwide. The acrylamide markets are significant, starting with the estimated $2.5--$5.0 billionglobal market for baker's yeast.
It is important to note that these yeasts are designated by the U.S. FDA as "generally recognized as safe" (GRAS) substances. Due to their GRAS status, clinical trials are not required prior to commercialization and while sales of Functional Technologies' yeasts in the U.S. and Europe can proceed, the company is committed to reaching or exceeding regulatory standards of quality and care.
Our yeasts, like many early-stage biopharma or nutraceutical products, address a multi-billion-dollar global market. Conversely, the market introduction of innovative yeasts into the food sector does not require regulatory clinical trials. Yeast can also be commercialized on a much shorter time horizon and at a far lower cost than a typical pharmaceutical product.
Since its inception, Functional Technologies has raised more than $15 million through equity, debt and government funding. The company's operations in Atlantic Canada have benefited from the support of numerous government funding programs (grants and low- or no-interest loans), including the Atlantic Innovation Fund, National Research Council Canada, and PEI Business Development Inc., with over $10 million in total funding programs committed to date.
Our future plans are to continue to explore and implement financing strategies that will utilize the company's cash and equity in a highly leveraged manner by accessing excellent government programs and private lending sources with an eye to preserving its capital resources. Our mission as commercialization proceeds is to be as non-dilutive as practical to the company's capital structure.