Functional Technologies to divest non-core assets
Functional Technologies has signed a Letter of Intent to divest its subsidiaries, Phyterra Bio and…Functional Technologies has signed a Letter of Intent to divest its subsidiaries, Phyterra Bio and Maritime Pulse Drying, as well as the early stage technology and property assets of these subsidiaries, in a management purchase by the president of the company, Garth Greenham, and its chief scientific officer, Michael Horne.
The company will transfer certain federal and provincial government loans and funding associated with these technologies and properties, plant and/or equipment, as well as certain other non-core assets of Functional Technologies and/or its subsidiary, Phyterra Yeast.
According to Functional Technologies, this move will allow promising early stage applications to be further developed by other parties. It will also reduce the capital and resource burdens to Functional Technologies associated with these non-core obligations.
The transaction is subject to approval by certain government agencies and by the TSX Venture Exchange.
Functional Technologies' acting CEO Christopher Morris said the proposed divestiture is a part of the company's efforts to optimize its development activities and capital resources, cutting costs associated with programs that no longer align with its core strategic focus.
"A successful divestiture of these non-core programs and properties, as well as their associated obligations, will better enable Functional Technologies to focus and drive significant value from the company's promising lead programs that have been gaining intensity from commercial and business development perspectives," Morris added.
Functional Technologies, headquartered in Vancouver, Canada, develops and commercializes proprietary, advanced yeast-based solutions for food, beverage and healthcare industries.