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BIOTECH: CANFOR DIVISION SELLS TECHNOLOGY


February 1, 2001
By Pulp & Paper Canada

VANCOUVER, BC — Canfor Corporation’s BC Chemicals division has inked a deal to sell its proprietary technology to extract phytosterols from pitch, a forestry by-product, to Forbes Medi-Tech Inc. In t…

VANCOUVER, BC — Canfor Corporation’s BC Chemicals division has inked a deal to sell its proprietary technology to extract phytosterols from pitch, a forestry by-product, to Forbes Medi-Tech Inc. In the agreement, Forbes will pay BC Chemicals $2.5 million in cash and $1.0 million in convertible debentures. David Emerson, president and chief executive officer of Canfor, explained the reason for the deal. “Following our acquisition of Northwood, we are focusing on our core businesses in the forest industry, and therefore [have] made the decision to sell our interests in the sterol business.” Forbes, considered a world leader in phytosterol technology, has the option to build a manufacturing plant at the BC Chemicals site in Prince George. For its part, Forbes noted that this acquisition will expand its access to raw material base. As Forbes president and chief executive officer Tazdin Esmail put it, “Acquiring this technology from BC Chemicals will further strengthen our leadership position in this market and provide an additional base for sustained growth.” The company uses phytosterol to make among other things Phytrol, a cholesterol-lowering food additive.

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