Calgary, Alberta’s Botaneco Corp., a natural specialty ingredients company, has closed its previously announced sale of subsidiary Botaneco Specialty Ingredients Inc. (BSI) to Concept Capital Management Ltd. The cash consideration of C$250,000 was directed to Canadian venture capital firm AVAC, in satisfaction of obligations. Botaneco is a portfolio company of AgeChem Venture Fund LP, which is managed by GeneChem, and Avrio Ventures.
Botaneco Corp. (“Botaneco” or the “Company”) (TSX-V: BOT), a leading natural specialty ingredients company providing key ingredients to the food and personal care industries is pleased to announce that it has closed its previously announced disposition of substantially all of the assets of its wholly-owned subsidiary, Botaneco Specialty Ingredients Inc. (“BSI”) to Concept Capital Management Ltd. (formerly 1710227 Alberta Ltd., (“Concept”)).
The arm’s length disposition was completed pursuant to the terms of an Asset Purchase Agreement (the “Agreement”) dated effective February 14, 2013 among the Company, Concept and AVAC Ltd. (“AVAC”). The purchased assets are comprised of cosmetic oleosomes ingredients manufacturing equipment, office equipment, customer accounts and trade information related to BSI’s oleosomes cosmetic business located in Calgary.
Under the terms of the Agreement, the Company received cash consideration of $250,000 (subject to final closing adjustments), $80,000 in respect of priority payables, and a release from AVAC with respect to a loan agreement with BSI valued at approximately $4,700,000. The cash consideration of $250,000 was directed to AVAC concurrently with the closing.
The Company will now focus on the business, operations and growth in Natunola Health Inc., a wholly-owned subsidiary of the Company based in Winchester, Ontario.
About the Company:
For more information regarding Botaneco Corp. please visit www.botanecocorp.com or www.sedar.com
This press release contains forward-looking information. More particularly, this press release contains statements concerning the anticipated focus of the Company. Although the Company believes in light of the experience of its officers and directors and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Botaneco Corp.
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