Ceapro Boosting Investment in High Technology at New Facility, Announces Improved Refinancing
EDMONTON, ALBERTA -- (MARKET WIRE) -- 09/24/07 -- Ceapro Inc. (TSX VENTURE: CZO) has increased investment in automation at its new facility in Leduc, Alberta by $400,000 for a total investment of $1,900,000. The new facility, which will be fully commissioned during the first week of October, will enhance Ceapro's production capacity by more than 2.5 times and make way for the production of the 18 natural plant extracts marketed by Ceapro and its partners.
"The additional investment will give us the immediate benefit of further enhancing margins and increasing productivity, with a decreased dependence on manual processes," stated Ceapro President and CEO, Dr. Mark Redmond. "The investment was mandated by the availability of low-interest debt financing, a dollar exchange rate which favoured acquiring equipment from the U.S., and the shortage of labour in the Alberta market, which drives the need for automation."
The latest investment includes valve and control systems, clean-in-place sanitizing systems, and a grain handling system.
The additional investment is incorporated into a refinancing offer received from Ceapro's current lender, Agriculture Financial Services Corporation. The refinancing features a lower rate of interest on borrowing $1,612,406 for a 5-year term based on a 10-year amortization.
The new facility, located in the Agrivalue Processing Business Incubator, is four kilometres from Edmonton International Airport. The facility is a fully serviced, registered facility approved by the Canadian Food and Inspection Association (CFIA). Ceapro occupies a private 4,000 sq. ft. wet processing plant, with an additional 2000 sq. ft. of warehousing for the storage of raw materials.
About Ceapro Inc.
Ceapro Technology Inc., Ceapro Veterinary Products Inc., Ceapro Active Ingredients Inc. and Ceapro Bioenergy Inc. are wholly owned subsidiaries of Ceapro Inc., which is a Canadian growth-stage biotechnology company. Our primary business activities relate to the development and commercialization of organic products for medical, cosmetic and animal health industries using proprietary technology and natural, renewable resources. We will be applying our technology to become an active participant in the bioenergy sector. We have also introduced health and wellness services employing our CeaProve® diagnostic technology. Ceapro shares trade on the Canadian TSX Venture Exchange under the symbol CZO. To learn more about Ceapro, visit www.ceapro.com .
The TSX Venture has neither approved nor disapproved of the information contained herein -
This release may contain forward-looking statements. Various factors could cause actual results to differ materially from those projected in forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
Contacts: Ceapro Inc. Dr. Mark Redmond President and CEO 780-421-4555 (Emonton) Sun International Communications Nicole Blanchard, B.Sc., B.Comm. Managing Partner 450-627-6600 (Montreal)
Released September 24, 2007