Verde Media Group Inc. (OTC: VMGI) and its Biotech Division ("VMBD") announce they have completed the acquisition of the privately held biotechnology company Butazyme LLC. Under the terms of the agreement VMGI through its wholly owned subsidiary VMBD, acquired 51% equity of Butazyme LLC. valued at $5.0 million USD
William Veve, President of Verde Media Group, Inc. stated, "We are very pleased to broaden our portfolio of market-transforming product in omega-3 industry and delighted to join forces with Butazyme, combining the complementary strengths of the two companies. With our internal capabilities in financing and marketing strategies and Butazyme proprietary technologies this transaction should result in the rapid production of omega-3 oils. Butazyme is an important asset to our Biotech Division and will be instrumental in generating significant revenue through its licensable platform technologies. "
Butazyme specializes in the microbial production of an alternative source of omega-3 oils, primarily, DHA and EPA. The global market for omega-3 is expected to reach $34.7 billion in 2016 with a continued accelerated growth rate over the next 5 years. Butazyme's microbial platform technology competes favorably with both traditional and other microbial methods of producing omega-3 oils. Butazyme's competitive advantages include the ability to convert multiple inexpensive feedstocks into omega-3 oils, capability of achieving high yields of DHA oils and the ability to rapidly deploy large scale production to meet growing demands. Butazyme has already achieved semi-pilot scale production of omega-3 oils at 1000-liter scale and is currently scaling to 25,000-liter process.
Dr. Abidi, Ph.D., Chief Executive Officer of VMBD stated, "We are delighted to complete the acquisition of Butazyme along with its broadly applicable technology platforms, commercialization expertise and proprietary technologies which are highly valuable assets that complement VMBD growth strategy. Moreover, with the wealth of these assets, we will significantly expand our pursuit of collaborations and strategic alliances with production scale-up and purchase contracts globally."