BioExx Specialty Proteins Ltd. announced that it is in advanced negotiations regarding the formation of a joint venture for the commercial scale deployment of the company's canola protein production technology. The counterparties to the proposed joint venture are an existing rapeseed (canola) processing company (the "Business Partner") and a private equity investment firm (the "Financial Partner"), both located in Europe. The proposed joint venture is intended to establish the European commercial deployment of complementary technologies, bringing the Business Partner's specialty edible oils production technology together with BioExx's food-grade protein technology, beginning with the construction and operation of a proposed 75,000 MT rapeseed processing facility.

Under the proposed joint venture, the new plant would be located adjacent to the Business Partner's existing operation in Europe. Preliminary engineering of the protein plant has already been completed. Within the current joint venture discussions, BioExx would provide its proprietary protein technology and expertise and the Business Partner would contribute its proprietary oil processing technology and expertise.

The Financial Partner would supply equity capital for construction and commissioning of the new facility. As part of the proposed joint venture, BioExx would receive cash consideration through staged payments. The companies are working to finalize ownership percentages for the joint venture and other terms of the transaction in a definitive and binding term sheet, to be completed on or about April 30, 2013.