Former BXI.V – Bio Extraction now BXI.TO – BioExx Specialty Proteins announced a private placement today. This is a former portfolio position I have kept on my public list as the stock still has great potential. The chart was telling me to wait for a better entry opportunity though. Today’s private placement at 1.85 should come as no surprise.
Private placement prices with strong stocks can usually be considered as a price floor providing support. Although it is minimal dilution keep in mind it is still dilution. A dip below the private placement price of 1.85 cannot be ruled out and is something you should expect and prepare for.
Excerpt from the BXI.TO private placement news:
The net proceeds of the Offering are intended to be used as may be required to continue funding the engineering, development, and construction work for the Company’s second plant in Minot, North Dakota, to fund the further development of its proprietary and patent-pending “toasted meal” protein technology, and for general corporate purposes including capital expenditures and working capital associated with its Saskatoon facility.
Here’s a past in-depth article about BXI.TO and the Minot Agriculture Park.
Up-to-date BXI.TO – Bio Extraction chart on my public list.
A dip below the private placement price might present an excellent buying opportunity as the stock would be hitting multiple support.
- Horizontal support (Price congestion October 2009)
- Price spike in July 2009. (Former resistance is tested from above and is now support)
- Moving Average 200
BXI.TO was one of the great trades in 2009. For those interested in reviewing past articles I posted about BXI.TO here is a chronological list of the posts:
Bio-extraction-bxi-venture-exchange
Uxg-us-gold-and-bxi-v-bio-extraction
60-min-chart-technical-price-targets
Bio-extraction-bxi-tsx-venture-consolidation-pattern-started
Bio-extraction-bxi-tsx-venture-bullish-ascending-triangle
Bio-extraction-bxi-v-tsx-venture-printing-new-all-time-highs
Bio-extraction-bxi-tsx-venture-minot-agriculture-park-attracts-canadian-company
To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.
– Jesse Livermore
Have a great evening!
About BXI.TO from the company’s website:
The Business:
The Business of BioExx is to develop, construct, own and operate a global base of oilseed processing facilities.
BioExx facilities will increase in size from the current 40,000 MT up to a maximum capacity of 250,000 MT per year, per facility.
BioExx will initially focus on Canola oilseed extraction, having opened its first oilseed processing facility in Saskatoon in March 2009. The company plans to expand into rapeseed, soybean and flax seeds in North America, the EU and South America.
Delivering more food value per tonne of seed processed than conventional oilseed processing, BioExx will be competitively positioned to make an increasing contribution to the overall global protein supply.
Across all facilities, BioExx has secured from industry partners long-term seed supply contracts and matched these with long-term purchase contracts for its oil, meal and specialty protein products.
In North America, BioExx wholly owns its facilities. Outside North America BioExx will enter strong strategic equity partnerships or joint-ventures to complement our operations model.
It is BioExx’s long-term vision to expand beyond the oilseed industry and to seek partnerships or licensing agreements in other industries in which the BioExx technology has a competitive advantage. This may include pharmaceutical and nutraceutical applications where the BioExx technology can be used to extract natural active ingredients and broad industrial applications.
The Science:
BioExx patented technology extracts active ingredients from organic biomass including oils from oil seeds. BioExx uses refrigerant-based solvents that are easily and efficiently recovered at less than 50°C, unlike conventional technologies that require temperatures in excess of 100°C.
Plant seeds contain valuable proteins that can be separated out to form Protein Concentrates (>65% concentrate) and Protein Isolates (>90% concentrate). When proteins are exposed to temperatures above 65°C they begin to denature, substantially reducing their nutritive value and making the separation process difficult. Proteins that are not denatured can be concentrated and have added value ranging from 5 to 40 times the value of animal feeds.
The patented BioExx extraction system is the only known commercial system that allows for low temperatures to be maintained during the extraction of oils and proteins from the biomass. This process gives BioExx a low cost and high quality platform to produce specialty protein products.
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