This preliminary collaboration is a fundamental step in the process of developing partnerships with global firms that possess established and significant capabilities in bioindustrial applications as well as in the manufacture, production and distribution of microorganism-based products. Such partnerships are expected to better position Functional Technologies to accelerate the commercial progression of its yeast-based solutions to naturally occurring contaminants and toxins, providing valuable synergistic capacities for the company.
Under the terms of this initial agreement, Functional Technologies and the partner will seek to confirm the general and performance characteristics of the Functional Technologies' AP yeasts, including the ability to reduce the main precursor asparagine to prevent the formation of acrylamide in the pre-specified food sector, and under industrial conditions provided by the partner. Other multinational companies are able to begin or continue to evaluate Functional Technologies' AP yeasts in this particular food category, as well as the other various applicable food-based sectors. The partner is granted a right of negotiation to license or commercialize the company's AP technologies that precludes other commercial agreements in this pre-specified sector during a fixed evaluation period. Functional Technologies retains the rights to negotiate commercial agreements for its AP yeast technologies in all other food applications. Additional terms of the agreement are confidential.
"We are very pleased to have the opportunity to work with one of the world's leading companies with expertise in the food and microorganism industries. This represents a significant milestone for Functional Technologies, as it further confirms the commercial appeal and potential of our AP yeast platform," said Howard Louie, chairman and CEO of Functional Technologies. "As we continue to engage with several multinational companies in the various sectors for which our technologies have been developed, our functional products continue to attract the world's largest food and food ingredient companies for field trials and industry adoption development programs. This provides recognition on a global scale for us as a company with innovative yeast-based solutions to industry-wide challenges. Collaborating with several of the leading firms in the food processing and ingredients sectors provide the Company with excellent opportunities to gain rapid access to global distribution networks, international production capabilities, and industry-specific technical expertise."
From the April 4, 2011, Prepared Foods E-dition