TORONTO, ONTARIO -- (Marketwired) -- 06/06/13 -- Solutions4CO2 Inc. ("S4CO2" or the "Company") (TSX VENTURE: SFC) is pleased to announce that it has finalized a joint venture (the "JV") with Quinlan Brothers Ltd. ("Quinlan") previously announced by the parties under a Letter of Intent dated March 22, 2013. The JV will produce high value Omega 3/Astaxanthin enriched oils (the "Products") from cold water shrimp waste streams using S4CO2's Bio-Extraction Process TM (the "Process"). Quinlan Brothers Ltd is a Canadian processor of cold water shrimp and snow crab from its processing facility located at Bay de Verde, Newfoundland and Labrador.
Under the terms of the JV, the parties agree:
1) That Quinlan will provide the JV with exclusive rights to the Quinlan Feedstock under a Supply Agreement and the JV will seek to secure additional feedstock supply from global sources beginning Q3 2013.2) S4CO2 will grant all rights and usage of its Bio-Extraction Process, and all improvements thereto, to the JV for the purpose of conducting the Business, on an exclusive, no-fee basis covering North America.3) That the JV will outsource the majority of the processing of the Quinlan Feedstock to toll processors until December 1, 2013.4) The JV will negotiate global off-take contracts for the sale of the 2013 Products.5) The JV will negotiate the toll-processing contract(s) for the 2013 production of the Products with such contracts including quality assurance, packaging and labelling based on the off-take agreements.6) Quinlan and S4CO2 will refer all opportunities that come to its attention where the Bio-Extraction Process or the Quinlan Feedstock could be a viable solution exclusively to the JV.
Global Omega-3 Market
Omega-3 polyunsaturated fatty acids (PUFAs) such as eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), are regarded as beneficial for preventing and treating a number of health conditions ranging from cardiovascular disease to autoimmune diseases and mental health disorders (Shahidi & Miraliakbari, 2004, 2005) and, recently, to inhibit the development and growth of breast cancer tumours (MacLennan et al, 2013). Omega-3 PUFAs have anti-inflammatory, anti-thrombotic, anti-arrhythmic, hypolipidemic and vasodilatory properties (Simopoulos, 2007). EPA and DHA from fish oil have been shown in clinical studies to help support cognitive health, brain function (Haag, 2003), cardiovascular health (Kris-Etherton, Harris, & Appel, 2003; Oh, 2005), to help reduce serum triglycerides (Sirtori et al., 1998) and, in conjunction with conventional therapy, to help reduce the pain of rheumatoid arthritis (Volker, Fitzgerald, Major, & Garg, 2000).
The supply of omega-3 has traditionally come from fish oils and other marine based sources such as krill, and from commercial microalgae production. The global market for omega-3 in 2011 was estimated at $25 billion with a 2016 forecast of $34 billion according to the food industry market research company, Packaged Facts.
"We are pleased to have entered into this JV with S4CO2. It offers an environmentally friendly revenue stream from our shrimp by-product," said Robin Quinlan, Vice President of Quinlan Brothers.