SunOpta Announces Closing of SunOpta BioProcess Financing
TORONTO--May 25, 2007--SunOpta Inc. (NASDAQ:STKL) (TSX:SOY) today announced that it anticipates closing its previously announced private placement for a minority position in its SunOpta BioProcess Group within the next two weeks. In aggregate, SunOpta expects to raise approximately US$30 million through the issuance of non-dividend bearing, convertible preferred shares of SunOpta BioProcess Inc. at a pre-money valuation of approximately US$200 million. Depending on the exact size of the private placement, SunOpta and management of SunOpta BioProcess Inc. is expected to retain approximately 85% of SunOpta BioProcess Inc. The preferred shares would entitle holders to one vote per share, would be redeemable in specified circumstances, would be convertible to acquire common shares of SunOpta Bioprocess Inc. on a one for one basis (subject to customary anti-dilution adjustments) and would not bear dividends. Subject to regulatory approval, investors in the private placement would also receive warrants to purchase approximately 648,000 common shares of SunOpta Inc. at any time for a period of six months following closing at an exercise price of US$11.57 per share, being the volume weighted average closing price of the SunOpta common shares on the Toronto Stock Exchange over the five trading days immediately prior to this announcement.
The proceeds of the financing will be used to invest in cellulosic ethanol production and to continue development of expanded process applications utilizing the Group's technology and expertise in providing integrated bioprocess solutions.
The securities to be sold in the financing will not be registered under the United States Securities Act of 1933 or any state securities laws and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
Forward-Looking Statements
Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to references to the expected terms of the proposed private placement and business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; the company's ability to negotiate successfully the specific terms of the private placement with investors, general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.
CONTACT: SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
Joseph Riz, Executive Vice President
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com
or
Investment Community Inquiries:
Lytham Partners, LLC
Joe Diaz, Robert Blum or Joe Dorame
Tel: 602-889-9700
diaz@lythampartners.com
SOURCE: SunOpta Inc.