Ceapro Enters into Financing Agreement with Agriculture Financial Services Corporation
EDMONTON, ALBERTA -- (Marketwired) -- 12/18/14 -- Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the "Company"), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for health care and cosmetic industries, announced today that it has signed an Offer Letter with Agriculture Financial Services Corporation (AFSC) for a commercial financing of up to $900,000.
Funds from AFSC's five-year term loan will be utilized for capital expenditures related to Ceapro's new 21,000 square foot GMP manufacturing relocation project which is nearing completion. The Company's new bio-processing extraction facility in Edmonton, Alberta, will have research and development, pilot scale and commercial production capabilities.
"We are pleased with this vote of confidence from our long-term partner, AFSC, who is providing us with non-dilutive funding and at very reasonable terms," said Gilles Gagnon, M.Sc., MBA, President and CEO of Ceapro. "AFSC has been a strong supporter of Ceapro from the beginning, so it is truly gratifying that they will be part of the biggest and most exciting project in our corporate history. We look forward to continuing to add value to the agri-product industry by addressing important health needs and to be instrumental in creating a bio-processing center of excellence in Alberta."
The five year term loan with an interest rate of 3.84% is subject to standard conditions which are expected to be met by the Company within the near-term.
About Ceapro Inc.
Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and "active ingredients" from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company's website at www.ceapro.com.
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Source: Ceapro Inc.
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Source: Ceapro Inc.
Released December 18, 2014