Cellana and POS Bio-Sciences Sign Letter of Intent for the Joint Development and Commercialization of High-Value Algae Biomass for EPA Omega-3s

Leverages $30 Million Investment by Cellana in Leading High-EPA Strain KA32

San Diego, CA and Kailua-Kona, HI – April 5, 2018 – Cellana, Inc., a leading developer of algae- based products for sustainable nutrition, ink, and energy applications, and POS Bio-Sciences, a leader in lean-minded R&D, custom processing, and analytical services, announced that they have signed a letter of intent for the joint development and commercialization of high-value EPA Omega-3 oils from Cellana’s algae biomass. Over the past seven years, Cellana has directed over $30 million of investment into developing and validating its ReNew™ Algae platform of high-value, non-GMO algae strains rich in Omega-3 nutritional oils, proteins, pigments, polysaccharides, and fuel-grade oils. During this time, Cellana has produced over 10,000 kilograms of ReNew™ Algae at its Kona Demonstration Facility in Hawaii for processing and testing of the multiple high-value and high- volume biomass components, including multi-ton quantities of its leading commercial algae strain KA32. With facilities in Canada and the United States, POS has developed and deployed numerous commercial-scale custom processing solutions for a wide variety of biological materials, including up-and-coming materials such as Omega-3-enriched algae biomass. Initially, Cellana will supply POS with additional quantities of whole algae from its Kona Demonstration Facility, and POS will use its existing processing equipment and facilities in Canada and the United States to extract and formulate the high-value EPA Omega-3 oils for nutraceutical and other applications, while the parties explore the development of larger-scale, fully-integrated, multi-product commercial algae biorefineries in Hawaii and other parts of the word. The agreement is non-exclusive as to both Cellana and POS Bio- Sciences. Financial terms of the agreement were not disclosed.

Martin Sabarsky, Cellana’s Chief Executive Officer, stated, “We have worked incredibly well with POS for a long time, and POS has successfully processed more of Cellana’s high-EPA-Omega-3 algae biomass than any other partner in the world to date. Their recent success in launching Algarithm™  for complementary DHA-Omega-3 ingredients, coupled with their continued development of cutting- edge processing technologies for algae biomass like Cellana’s KA32, make them an extremely well- aligned commercial partner for Cellana.”

Dale Kelly, Chief Executive Officer of POS Bio-Sciences, stated “Cellana is a recognized leader in growing high-EPA-Omega-3 algae outdoors, and our demonstrated ability to process Cellana’s algae biomass using our facilities and proprietary processes allow us to expand our growing portfolio of joint projects and products with our partner Algarithm™.” “EPA is the natural complement to DHA based on both Omega-3s being the active ingredients in ‘typical’ fish oil supplements, and fish and krill directly or indirectly get their EPA and DHA from algae in the ocean. Cellana, POS, and Algarithm strongly believe in the growing opportunity to ‘cut out the middle fish’™ and deliver vegan Omega-3s and proteins with similar or even better nutritional profiles than fish- or krill-based products,” Mr. Kelly continued.

About Cellana

Cellana, a leading developer of algae-based bioproducts, uses the most productive plants on earth — marine microalgae — to photosynthetically produce its ReNew™ line of Omega-3 EPA and DHA oils, ink feedstock, and animal feed/food and biofuel feedstocks. Cellana’s patented ALDUO™ system enables economic, sustainable and consistent production of photosynthetic, non-GMO algae at industrial scale. Cellana intends to construct and operate commercial facilities to produce these products as integrated algae-based biorefineries. Further information is available at cellana.com.

About POS Bio-Sciences and Algarithm Ingredients Inc.

 Founded in 1973 in Canada, POS Bio-Sciences is a leading provider of lean-minded R&D, custom processing, and analytical services across an expanding array of industry sectors, with demonstrated capabilities for commercial-scale custom processing solutions for biological materials. Originally focusing on grain and oilseed processing and ingredient development, the company has continued to expand the commercial applications of its technologies, including industrial-scale processing of algae biomass enriched with high-value DHA and EPA Omega-3 oils and other high-value ingredients. With commercial facilities in Canada and the United States, the company has performed more than 5,400 client projects to date in more than 50 countries worldwide. POS Bio-Sciences is also an investor and partner of Algarithm Ingredients Inc., a leading provider of vegan Omega-3 oils, powders, and emulsions for an increasing range of functional food, beverage, and nutraceutical applications. Further information is available at: www.pos.ca and algarithmdha.com.

Note: ALDUO™, ReNew™ and “cut out the middle fish”™ are trademarks of Cellana, Inc. Algarithm™ is a trademark of Algarithm Ingredients Inc.

Contacts:

Martin Sabarsky, CEO
+1 858-774-7915
martin.sabarsky@cellana.com

Piia Aarma Pineapple Tweed PR
+1 808-221-2102
piia@pineappletweed.com

2018-04-09T06:18:13+00:00