|April 04, 2012|
Functional Technologies Signs LOI to Divest Non-Core Assets, Cut Non-Essential Spending
Vancouver, BC --- April 04, 2012 --- Functional Technologies Corp. (TSX-V: FEB) (the "Company") announced it has signed a Letter of Intent ("LOI") to divest its subsidiaries, Phyterra Bio Inc. and Maritime Pulse Drying Inc., as well as the early stage technology and property assets of these subsidiaries, in a management purchase by the President of the Company, Garth Greenham, and its Chief Scientific Officer, Michael Horne.
Included in the LOI is the transfer of certain federal and provincial government loans and funding associated with these technologies and properties, plant and/or equipment, as well as certain other non-core assets of Functional Technologies and/or its subsidiary, Phyterra Yeast Inc. This is expected to allow for promising early stage applications to be further developed by other parties while reducing the capital and resource burdens to Functional Technologies associated with these non-core obligations. The transaction is subject to approval by certain government agencies and by the TSX Venture Exchange.
Christopher Morris, Functional Technologies' acting CEO, stated, "The proposed divestiture is an integral part of our efforts to optimize the Company's development activities and capital resources, cutting costs associated with programs that no longer align with Functional Technologies' core strategic focus. A successful divestiture of these non-core programs and properties, as well as their associated obligations, will better enable Functional Technologies to focus and drive significant value from the Company's promising lead programs that have been gaining intensity from commercial and business development perspectives."
About Functional Technologies Corp.
Functional Technologies develops and commercializes proprietary, advanced yeast-based solutions to significant challenges in the food, beverage and healthcare industries. The Company's platform improves the performance of innate yeast functions, and prevents the formation of naturally occurring toxins and contaminants that either affect final product quality or are classified by the World Health Organization as probable human carcinogens. Functional Technologies' lead technologies include yeasts that prevent and reduce the formation of the foul-smelling hydrogen sulphide (H2S) and the carcinogens acrylamide and ethyl carbamate (more commonly known as urethane), by-products of food and beverage processing. These contaminants are found in many commonly consumed items, such as fermented food products and alcoholic beverages, and baked and fried foods. With a head office in Vancouver, Functional Technologies Corp. has R&D operations in Prince Edward Island and Europe, as well as a U.S. sales office in Napa Valley, California. For more information, please visit our website at www.functionaltechcorp.com.
For further information, contact:
Connie Chen, PhD
VP, Corporate Development and Communications
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