BSG Basicgov Systems Inc.

Functional Technologies Corp. (TSX VENTURE:FEB) (the "Company") today reported
operational and financial results for the year ended August 31, 2011 ("FY2011").
Amounts, unless specified otherwise, are expressed in Canadian dollars and in
accordance with Canadian Generally Accepted Accounting Principles ("Canadian
GAAP"). 


Mr. Howard Louie, Functional Technologies' CEO and Chairman, said, "Functional
Technologies has accomplished significant achievements in the past year,
particularly in building technical and commercial value for our proprietary
acrylamide-preventing ("AP") yeast platform. This extends from demonstrating
compelling efficacy data, to the cultivation of strategic relationships with
multiple tier one and tier two yeast producers as well as an increasing range of
food processing end users. Our corporate goal to drive technologies from bench
to commercialization is being realized with our H2S-preventing wine yeasts,
achieving increasing market presence through significant growth in the number of
wineries purchasing introductory quantities of our product with results that
reflect a strong market interest across several new regional markets. Meanwhile,
our technical research and development team continue to improve and increase the
quality and breadth of our wine yeast product offering to fulfill our goals to
develop and increase market share while establishing the business model of our
technology as a platform." 


FY2011 Operating Highlights 

Acrylamide-Preventing (AP) Yeast Program:



--  Announced Functional Technologies entered into an agreement to research
    and evaluate its AP yeasts with an undisclosed global company (the
    "Collaboration Partner"). The Collaboration Partner is considered one of
    the leading companies in the development, manufacturing, marketing and
    distribution of snacks and other food products, sectors outside of the
    conventional bread-based products that utilize baker's yeast and in
    which the application of the Company's AP yeast products could provide
    considerable value. 
--  Entered into a collaboration agreement with an undisclosed, leading
    multinational company possessing significant capabilities in the
    production and distribution of microorganism-based products, to confirm
    the performance characteristics of its AP yeasts in one of several
    applicable sectors of food-related products. Collaborating with several
    leading multinational firms in the food processing and ingredients
    sectors provides key opportunities to gain rapid access to global
    production capacity and global distribution networks. Such partnerships
    are expected to better position the Company to accelerate the commercial
    progression of its AP yeast products. 
--  Announced that the Company's subsidiary, Phyterra Yeast Inc. ("PYI"),
    was awarded $2.5 million in non-dilutive funding from the Government of
    Canada's Atlantic Innovation Fund (AIF) under the oversight of the
    Atlantic Canada Opportunities Agency (ACOA). These funds will support a
    project to develop and commercialize the application of its proprietary
    AP yeast technology in the processed potato industry. 
--  Announced that considerable progress had been made towards the
    commercialization of its AP yeast technology. Several international food
    ingredient companies are in various stages of conducting tests to
    confirm the effectiveness of the Company's AP yeast in baked products. 



Hydrogen Sulphide (H2S)-Preventing Wine Yeast Program:



--  Announced the renewal of the Company's distribution agreement with
    Beverage Supply Group ("BSG"), including an increase in the minimum
    purchase volume of Phyterra(TM)-branded H2S-preventing wine yeasts in
    the U.S. market for the 2011 season. 
--  Announced that the U.S. Food and Drug Administration (FDA) issued a "no
    questions" letter in response to the Generally Recognized as Safe
    ("GRAS") notification for the Company's Phyterra(TM)-branded H2S-
    reducing yeast for use in preventing the formation of H2S during the
    fermentation of various alcoholic beverages including red and white
    wine, sake and other rice wines, and beer. 
--  Reported that in the first, introductory commercial season, the
    Company's Phyterra(TM)-branded wine yeast strains were sold into over 75
    wineries in 13 U.S. states, with a majority of the sales occurring in
    the key California market. 



Other Developments:



--  One of six companies across Canada recognized by the Government of
    Canada as businesses whose investments in R&D initiatives have been
    supported by federal funding, and which have subsequently evolved into
    commercial entities. This recognition also reflects the partnership
    Functional Technologies has built with federal and provincial
    governments, allowing strong R&D initiatives to be maintained while
    building a reputation for commercializing novel technologies that
    attract the interest of multinational companies. 



Operating Highlights Subsequent to Year-End



--  Announced the Company has commenced evaluation food trials with its
    proprietary AP yeast technology for a leading European producer of
    intermediary starch-based food products including extruded snack food
    pellets (the "Collaborator"), which are purchased and integrated by
    numerous downstream food manufacturers into a variety of other food
    products. These downstream food manufacturers represent many brand
    leaders in the processed food industries, and the Collaborator has
    established its global position over decades. 
--  Announced that the development of a third (3rd) generation of its
    proprietary AP yeast platform, wherein various improvements made to the
    Company's original underlying AP technology have enabled the yeast's
    capacity to degrade asparagine, a rate-limiting precursor to acrylamide,
    to be accelerated and elevated. 
--  Announced that it has signed an agreement enabling an undisclosed
    leading European producer of sweet & savoury baked goods, snacks and
    confectionaries to evaluate the Company's proprietary AP yeast
    technology in the European food producer's commercial materials used to
    produce many of their branded food products. 
--  Announced that efficacy studies conducted on end-user materials,
    investigating the Company's proprietary AP yeast technology in a novel
    food application, have demonstrated significant reduction of asparagine.
    Moreover, the reduction was achieved well under the normal processing
    times associated with the application. Asparagine is a key precursor to
    the formation of the mutagen (i.e. carcinogenic), as well as
    neurologically and reproductively toxic chemical, acrylamide. Functional
    Technologies previously demonstrated that the ability of its technology
    to reduce asparagine has been significantly effective in preventing the
    formation of, and thereby reducing, acrylamide.



Fiscal Year 2011 Financial Results

The Company incurred a net loss of $4.8 million for the 12 months ended August
31, 2011, compared to a net loss of $3.4 million for the 12 months ended August
31, 2010 ("FY2010"), representing an increase of $1.4 million due primarily to
an increase in operating expenses, inventory write-off, and a decrease in
government assistance.


Revenues for FY2011 were $0.2 million, compared to $0.05 million, in the year
prior. The increase of $0.15 million reflects an increase in the number of
wineries purchasing introductory quantities of the Company's proprietary
H2S-preventing wine yeasts in the U.S., as well as in Europe and Chile where
2011 represented the first year of commercial availability of these wine yeasts.
The Company believes that getting product into use at a large number of
wineries, is key to establishing demand for its wine yeast platform and
products. 


Operating expenses, excluding stock-based compensation expenses, for FY2011 were
$4.4 million, compared to $3.6 million in FY2010. The increase in operating
expenses was attributed primarily to increases in salaries and wages,
amortization of capital assets, and travel expenses associated in part with
elevated product development, business development, and marketing activities.
Government funding in FY2011 decreased by $0.4 million from $0.8 million in
FY2010 due to reduced R&D activities conducted by the Company's subsidiary
Phyterra Bio Inc.


Liquidity and Outstanding Share Capital 

As at August 31, 2011, the Company had cash and short-term investments of $4.2
million compared to $0.9 million as at August 31, 2010. As at August 31, 2011,
the Company had working capital of $3.9 million compared to $1.4 million as at
August 31, 2010. 


As at December 29, 2011, Functional Technologies had 49,396,895 common shares
issued and outstanding. 


Additional Information

This news release should be read in conjunction with the Company's consolidated
financial statements for the quarter ended August 31, 2011 and the notes
thereto, together with the MD&A for the corresponding period, which are
available on the Company's website www.functionaltechcorp.com and on SEDAR at
www.sedar.com. 


Forward-Looking Information

This news release contains forward-looking information (within the meaning of
Canadian securities legislation) about Functional Technologies Inc. and its
future plans. Forward-looking information relate to future events or future
performance and reflect management's expectations or beliefs regarding future
events rather than historical facts, and in this news release include the
statements (the "forward-looking statements") regarding: (1) the expectation for
additional key developments related to the Company's AP-yeasts; (2) the
expectation that collaborating with leading multinational firms in the food
processing and ingredients sectors will provide key opportunities to gain rapid
access to global production capacity and distribution networks; and (3) the
Company's expectation for volume and revenue growth in the upcoming winemaking
seasons, including expansion in the U.S., Europe and South America. The
forward-looking statements in this news release are subject to various risks,
uncertainties and other factors that could cause the Company's actual results or
achievements to differ materially from those expressed in or implied by
forward-looking statements. These risks, uncertainties and other factors
include, without limitation, uncertainty as to the Company's ability to achieve
the goals and satisfy the assumptions of management; uncertainty as to the
demand for the Company's products and the Company's ability to meet such demand;
and general economic factors and other factors that may be beyond the control of
the Company. Forward-looking statements are based on the opinions and
expectations of the Company's management at the time they are made, and the
Company does not assume any obligation to update its forward-looking statements
if those opinions or expectations, or other circumstances, should change.
Reference to the section entitled "Risks and Uncertainties" commencing on page
18 of the Company's management's discussion and analysis relating to the fiscal
year ended August 31, 2011, which is available on SEDAR at www.sedar.com.


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.

Basicgov Systems Inc. (TSXV:BSG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024

Basicgov Systems Inc. (TSXV:BSG)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024