Tickers: PINX:CHEXF, XTSX:VIV
Tags: Biotechnology, Research & Development, Technology
Ottawa, ON / TheNewswire / October 27 2016 - Avivagen Inc. (TSXV: VIV, OTC Pink: CHEXF), a life sciences company commercializing products intended to replace the antibiotics added to animal feeds, announces its first industrial-scale sale of OxC-beta(TM) Livestock ("OxC-beta") to the feed industry and a change to the composition of its Board of Directors.
The order is an initial purchase from UNAHCO, Inc. in the Philippines and is for 150 kg of OxC-beta(TM) Livestock 10% premix at pricing in line with Avivagen's target. The order will supplement approximately 7,500,000 kg of UNAHCO branded commercial feed, an amount sufficient for about 3,000,000 broiler chickens (full grow) or 350,000 piglets (first month post-weaning). Avivagen anticipates further orders from UNAHCO, which should escalate as UNAHCO begins to use OxC-beta in additional lines of complete feeds and in feed premixes.
Graham Burton, co-founder of Avivagen and its Director, Commercialization Science, commented about the sale, "We're delighted about our product being incorporated into a commercially-available livestock feed for the first time. We believe that this acceptance by industry is an important next step towards widespread use of OxC-beta as a replacement for antibiotic feed additives. It is also the gratifying result of many years of hard work by Avivagen and our collaborators and we thank everyone who has participated in such efforts."
Cameron Groome, Avivagen's CEO, stated, "The Philippines distribution agreement and related sale confirms our strategy of first concentrating on Asia - as both the largest regional market and because of its receptive regulatory regimes and clients. We now intend to follow through with further targeted commercialization initiatives in Asia and other important regions."
UNAHCO, Inc. is the exclusive distributor for Avivagen's OxC-beta(TM) Livestock in the Philippines, where it is now registered for use in all food animal species. The Philippines is an important feed market, with annual production of feed estimated at 13 million metric tons per year. The most important commercial livestock species in the Philippines are swine, with production of approximately 2.1 million metric tons per year, and broiler poultry, with production of approximately 1.7 million metric tons per year. Compared to Canada, the Philippines produces about the same amount of pork and 1.5 times as much broiler chicken.
Avivagen also announces the resignation of Mr. David G.P. Allan from its board of directors. Board Chair Mr. G.F. Kym Anthony commented, "The board and management of Avivagen thank David for his significant contributions to Avivagen. His experience in both the financial and life sciences sectors was invaluable in developing Avivagen's strategies as a company commercializing products intended to replace the antibiotics added to livestock feeds. We wish him well as he devotes his time to his numerous other business enterprises."
Avivagen is a life sciences company commercializing products to replace the antibiotics used in livestock feeds, initially concentrating on the two largest feed segments - swine and broiler poultry. Avivagen is based in partnership facilities of the National Research Council of Canada in Ottawa, Ontario and Charlottetown, Prince Edward Island.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "aim", "anticipate", "appear", "believe", "consider", "could", "estimate", "expect", "if", "intend", "goal", "hope", "likely", "may", "plan", "possibly", "potentially", "pursue", "seem", "should", "whether", "will", "would" and similar expressions. Statements about whether Avivagen will receive any additional orders from UNAHCO, receive escalating orders for OxC-beta, whether OxC-beta will be successfully commercialized in the Philippines or elsewhere, whether other agreements will be concluded, the importance of the Philippines as a market for livestock feed, whether Avivagen will achieve ongoing sales of OxC-beta in the Philippines, Avivagen's strategy and intentions to make OxC-beta available to replace in-feed antibiotics across Asia and globally, trials or efficacy, whether Avivagen's technology can replace antibiotics in livestock feeds, commercial acceptance of OxC-beta, the performance or health-related uses of technologies described herein, including their importance to animal or human health, their novelty, safety, efficacy or affordability, are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Such Avivagen risks and uncertainties include, but are not limited to, the following: Avivagen's ability to continue as a going concern; whether the agreement enabling the sale of OxC-beta in the Philippines remains in effect; whether OxC-beta is successfully commercialized in the Philippines; the results of ongoing or future trials may not be positive or sufficiently positive; even if the results of trials are positive, there is no guarantee that Avivagen's products will be commercially successful or that requisite registrations or regulatory approvals will be obtained or maintained; the timing and results of trials may be delayed or may not be completed at all; and intellectual property rights may prove inadequate to protect Avivagen's inventions. The readers should also refer to Avivagen's Annual Information Form for additional risk factors. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information:
Avivagen Inc.
Cameron Groome, CEO & President
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164
Website: www.avivagen.com
Renmark Financial Communications Inc.
Bettina Filippone - bfilippone@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989 - www.renmarkfinancial.com
Copyright (C) 2016 Avivagen Inc.
-------------------------------------- |OxC-beta™ is a trademark of Avivagen| |Inc. | --------------------------------------
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