Ottawa, ON / TheNewswire / Nov 14 2016 / – Avivagen Inc. (TSXV: VIV, OTC Pink: CHEXF), a life sciences company commercializing a product to replace the antibiotics used in livestock feeds, announces an agreement with Shaanxi Jintai Mining Co. Ltd.  (“Jintai”), a widely-diversified Chinese company, to form a joint venture to commercialize OxC-beta™ Livestock in the People’s Republic of China (“China”).

The agreement will create a China-Canada joint venture company (“JV”) based in the city of Xi’an, Shaanxi Province. The purpose of the JV is to register and commercialize OxC-beta™ Livestock (“OxC-beta”) in China, initially for use in poultry and swine and with an option for use in cattle and goats (bovines and caprines). The JV will be owned 51% by Jintai and 49% by Avivagen, with equal representation on the board of directors and joint decision-making. The agreement specifies that Jintai will invest up to RMB 6.0 million (~C$1.2 million) into the JV to fund activities relating to the registration and commercialization of OxC-beta in China.

 

The agreement is substantially consistent with the non-binding term sheet between the parties that was announced by Avivagen on April 14, 2016. The JV will seek approval to market OxC-beta in China, although there is no assurance that it will receive such approval.  The parties also expect the JV to enter into an exclusive distribution and supply agreement with Avivagen.

Mr. Shen Xiaobo, President of Jintai, spoke about the JV’s objectives, “China’s  National Action Plan to Contain Antimicrobial Resistance of August 26th expresses concerns about the use of antibiotics in livestock production. Jintai believes that OxC-beta offers an optimal alternative to in-feed antibiotics and should enable a material reduction in their use – now estimated at 100,000 tonnes per year in China. Jintai is proud to be pursuing this goal with Avivagen.”

Cameron Groome, CEO & President of Avivagen, added, “Avivagen and its collaborators have now successfully completed 13 trials of OxC-beta in broiler poultry and swine. We now look forward to completing registration-oriented trials for these two species in China. Approximately 180 million tonnes of livestock feed are consumed in China each year, making this a large opportunity for Avivagen and Jintai to benefit both society and their shareholders.”

About China and Jintai

Jintai is a private diversified company active in mining, engineering, materials and construction, utilities, textiles, electronics, auto parts, property management and investment management. Jintai is based in Xi’an, the home of one of China’s leading agricultural universities (Northwest A&F). Its corporate values include sincerity, professionalism, innovation and working to establish win-win business ventures.

China is said to be the world’s largest market for formulated feeds, using an estimated 180 million  tonnes in 2015. The species initially targeted by the JV, swine, broiler poultry and layer hens, are estimated to consume 84% of that feed. Animal counts are estimated to be 500 million swine, eight billion broilers and two billion layers, raised in many of China’s provinces and autonomous zones, including Shaanxi.  

About Avivagen

Avivagen Inc. is a life sciences company  that has developed a scientifically-proven product for replacing antibiotics in livestock feeds and to otherwise benefit human and animal health. Avivagen is based in partnership facilities of the National Research Council of Canada (NRC) - in Ottawa, Ontario and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com.

About OxC-beta™ Livestock

OxC-beta™ Livestock (“OxC-beta”) is a proprietary product demonstrated to be effective and economic in replacing the antibiotics commonly added to livestock feeds. OxC-beta is derived from Avivagen discoveries about the properties of carotenoids, the compounds that give certain fruits and vegetables their bright colors. Comprised of fully-oxidized beta-carotene, OxC-beta is a non-antibiotic means of maintaining optimal health and growth in livestock animals such as swine and poultry. OxC-beta™ Livestock is currently registered and available for sale in the Philippines, Taiwan and Thailand.

Forward Looking Statements

This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, ”helps”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements or assumptions about the intended joint venture as described,  whether or not the JV will be registered by the relevant regulatory authorities, or whether the JV will be established at all,  whether the terms of the JV set out in the agreement will change, whether OxC-beta will be approved for marketing and sale in China, whether the proposed registration trials will be completed or successful, whether the proposed funding of the JV is sufficient to carry out its purposes, whether the JV will enter into the distribution and supply agreement, whether the JV will be able to successfully market and sell OxC-betaTM Livestock in China, the uses of the technologies described in this news release, including their importance to animal or human health, their novelty, safety, efficacy or affordability, statements about China or Jintai or the intended JV, corporate goals or Avivagen or Jintai management opinions, are all forward looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Such Avivagen risks and uncertainties include, but are not limited to, the following: whether the establishment of the JV will be registered by the relevant regulatory authorites, or whether the JV will be established at all, whether the parties and the JV will obtain relevant regulatory and government approvals to market and sell OxC-Beta; the size of the Chinese market; whether OxC-beta can be successfully commercialized in the Chinese market, if at all; whether the funding of the JV is sufficient to carry out its purposes; Avivagen’s ability to continue as a going concern; the fact that results of ongoing or future trials of OxC-beta may not be positive or sufficiently positive; even if the results of trials are positive, there is no guarantee that Avivagen’s products will be commercially successful or that requisite regulatory approvals will be obtained; the timing and results of trials may be delayed or may not be completed at all; and intellectual property rights may prove inadequate to protect Avivagen’s inventions.  Accordingly, readers should not place undue reliance on forward-looking statements.  Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

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.

For more information:                      
Avivagen Inc.

Cameron Groome, CEO & President 
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164    Website: www.avivagen.com

Copyright © 2016 Avivagen Inc.

OxC-beta™, Vivamune™ and Oximunol™ are trademarks of Avivagen Inc.

Renmark Financial Communications Inc.

Bettina Filippone – bfilippone@renmarkfinancial.com

Tel: (416) 644-2020 or (514) 939-3989 – www.renmarkfinancial.com