VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/13 -- Functional Technologies Corp. (TSX VENTURE: FEB)(OTCQX: FEBTF) reports that, as part of the previously announced restructuring process that began in 2012, its subsidiaries that hold the PEI assets and obligations have ceased operations and have been placed in receivership. The appointment of a receiver for the PEI subsidiaries will not affect the operations or obligations of the parent company, Functional Technologies Corp. (the "Company").
The restructuring is designed to allow Functional Technologies to optimize its development activities by commercializing its core yeast technologies in conjunction with industry partners. This business model allows the Company to concentrate on its core competencies and maximize efficient use of its resources.
The original restructuring plan announced in April 2012 involved a divestiture of the PEI subsidiaries and certain related assets and obligations to employees of those subsidiaries, subject to the approval of certain government agencies, as well as other conditions precedent. As announced in November 2012, the required government approvals for the planned divestiture were not granted. As a result of this, the Company announced in January 2013 that it had come to agreement with the Atlantic Canada Opportunities Agency and certain former PEI employees to settle all related obligations of the parent company and move to cease operations of its remaining PEI subsidiaries.
With completion of the closure of its former PEI operations, Functional Technologies Corp. is moving quickly forward with commercial activity for its Hydrogen Sulfide Preventing yeasts and its Acryalamide Preventing yeasts. Updates on related commercial progress will be forthcoming.
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 carcinogen acrylamide, by-products of food and beverage processing. These contaminants are found in many commonly consumed items, such as fermented food products, baked and fried foods and coffee.
The head office and R&D operations for Functional Technologies are based in Vancouver, BC, Canada.
For more information, please visit our website at www.functionaltechcorp.com.
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Functional Technologies Corp.
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