Calyx (CYX.V) Majority-Owned Subsidiary, Agrisoma Biosciences Inc., Enters Into Marketing and Distribution Agreement With Subsidiary of Paterson Grain
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 3, 2013) -Calyx Bio-Ventures Inc. (TSX VENTURE:CYX) is pleased to announce that its majority-owned subsidiary, Agrisoma Biosciences Inc. ("Agrisoma") and PGF Biofuels Inc. ("PGF") have entered into a long term strategic agreement for marketing and distribution.
PGF is a wholly owned subsidiary of Paterson GlobalFoods Inc. ("Paterson"), owner of Paterson Grain. Paterson is a private family-owned group of companies active in Europe, Asia, Australia, and the Americas. Founded in 1908 and headquartered in Winnipeg, Manitoba, Paterson operates approximately 40 grain handling sites across the Canadian prairies, including nine inland export terminals.
The new long-term agreement appoints PGF as Agrisoma's exclusive partner for Resonance® carinata, a non-food oilseed crop, in North America and Australia, and establishes a framework through which PGF and Agrisoma will coordinate expansion into additional regions. Under the original agreement in 2012, Paterson was the exclusive contracting partner for the production of Resonance® in Western Canada.
Paterson played a key role in the commercial production launch of Resonance® in 2012, acting as the contracting partner for 6,000 acres planted and harvested last year at approximately 40 farms in Saskatchewan and Alberta. Fifty acres were planted in 2011. Under the new agreement Paterson will manage the purchase of Resonance® carinata production from growers and the subsequent processing and sale of product. Agrisoma will be paid a royalty on sales generated from Resonance® carinata, which will vary depending on the nature of the end products sold.
Hugh Notman, president and CEO of Calyx, said, "The agreement is vital to building the value chain from seed through to product sales. Our focus now turns to ramping up carinata production in the coming years."
"Building a strong partnership between Agrisoma and Paterson strengthens our goals to cover a much broader geographical region," said Dr. Steven Fabijanski, president and CEO of Agrisoma. "As we expand the production of Resonance® carinata, there isn't a better company to work with than Paterson. They have been at the forefront of the grain handling business for more than a century and are leaders in seed sales, relationships with farmers, logistics, transportation, elevation and the sale of grain."
"We are pleased to expand our relationship with Agrisoma, and pursue the potential of Resonance® at a global scale," said Andrew Paterson, CEO of Paterson GlobalFoods Inc. "We have an unwavering commitment to bold innovation and new opportunities. We highly value our relationships, and Resonance® offers farmers crop rotation flexibility, another source of income and a chance to participate in the flourishing bio-energy sector."
"PGF provides a very important link in the biofuel value chain," said Dr. Fabijanski. "Paterson's leadership in the grain handling industry expands our ability to scale Resonance® carinata, and allows us to focus on our core competencies as a seed and technology company."
Resonance® carinata has been specifically developed for production on semi-arid land such as the brown soil zone regions of Western Canada found in southern Saskatchewan and Alberta and other regions. The crop produces oil suited to industrial uses, such as biofuel production, and was the exclusive feedstock for the first 100% biofuel flight flown in October, 2012. The crop is vigorous and hearty, with good resistance to ecosystem stressors. Resonance® carinata showed potential in 2012 by growing well under a variety of conditions that were less than ideal.
Calyx Bio-Ventures Inc. (TSX VENTURE:CYX) is an agricultural technology company focused on renewable fuels including biojet and biodiesel. Calyx's majority-owned operating subsidiary, Agrisoma Biosciences Inc., is producing an exciting new proprietary non-food energy feedstock crop, Resonance® carinata, which yields oil that can be refined into fuel which works in existing engines as a 100 percent petroleum substitute. From seed to sky, fuels produced from carinata substantially reduce carbon and other harmful emissions, and help to reduce global petroleum dependence. For further information about Calyx, please visit www.calyxbio.com