Forbes Medi-Tech has completed the sale of itspilot manufacturing plant in Quebec, Canada for C$1.6 million (€1.03m).
Forbes will receive C$400,000 in up front payments and will receive an additional$350,000 in May 2003. The remaining $850,000 will be amortized over a 7year first mortgage.
"The Amqui plant sale represents an immediate and positive impact on ourbalance sheet," said Charles Butt, President and CEO of Forbes Medi-TechInc. "I am pleased to have the plant sale resolved as we can now focus onthe joint-venture manufacturing facility in Pasadena, Texas."
Forbes purchased the Amqui plant in December 1998 to develop and scale upits phytosterol extraction and manufacturing technology. In January 2001,the Company entered into a joint venture with Chusei (US) to formPhyto-Source LP to build and operate a significantly larger dedicatedwood-based sterol manufacturing plant in Pasadena, Texas to produce Forbes'proprietary sterol-based cholesterol lowering functional food ingredientReducol as well as other formulations of phytosterols for the food andnon-food markets.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to theresearch, development and commercialisation of innovative pharmaceuticalsand nutraceutical products for the prevention and treatment ofcardiovascular and related diseases.