TORONTO BioExx Specialty Proteins Ltd. announced Monday that it plans to sell common shares to a syndicate of underwriters led by Canaccord Financial Ltd. to raise about $15 million to fund development of an oilseeds plant in Minot.
BioExx also granted an option until today to allow Canaccord to buy more shares for additional proceeds of up to about $2.3 million.
Along with the Minot plant, BioExx is seeking the money for further development of its proprietary, patent-pending "toasted meal" protein technology and for general corporate purposes, including capital expenditures and working capital associated with its Saskatoon facility.
"We believe the offering will provide us with greater financial strength and flexibility through protein start-up in Saskatoon, together with an extended ramp-up window during which to demonstrate consistent volume growth, product quality, and customer acceptance. At the same time, we can also continue on plan with the development of our North Dakota facility and other business initiatives," said Chris Schnarr, chief financial officer of BioExx.
The common share offering is expected to close on or about March 30 and is subject to regulatory approval.