VANCOUVER, Dec. 11, 2018
VANCOUVER, Dec. 11, 2018 /CNW/ - Fortress Global Enterprises Inc. ("Fortress Global") (TSX:FGE) (OTCQX:FTPLF) is pleased to announce that it has entered, through its wholly owned subsidiary, Fortress Advanced Bioproducts Inc. ("FortressAB"), into a Technology License and Collaboration Agreement (the "License Agreement") with Mondelēz International, Inc. ("Mondelēz") (NASDAQ:MDLZ), one of the world's largest snacking companies. Pursuant to the terms of the License Agreement, Mondelēz has agreed to grant an exclusive worldwide license to FortressAB to use its sugar-based bioproduct manufacturing technology that was jointly developed by Mondelēz and S2G Biochemicals Inc. ("S2G"). Fortress Global acquired S2G in March of 2018 and established FortressAB to commercialize the licensed technology.
The licensed technology is the result of a multi-year collaboration between Mondelēz and S2G to provide an environmentally sustainable process to produce cost-optimized, sugar-based bioproducts, including xylitol, a premium low-calorie sweetener used in gum, candy and food products. Fortress Global produces an ideal feedstock for the process at its Fortress Specialty Cellulose Mill located in Thurso, Québec, by rinsing hemicellulose sugars from sustainably harvested, non-GMO, hardwood trees. Mondelēz will collaborate with FortressAB to demonstrate the technology through funding and technical support for the construction of a xylitol and complementary bioproducts demonstration plant at the Fortress Specialty Cellulose Mill scheduled to start up in 2020. If successfully demonstrated, the licensed technology could be scaled up to commercially produce approximately 20,000 tonnes per year of xylitol and complementary bioproducts from the hemicellulose sugars available from the Thurso mill. Fortress Global believes that a full-scale plant at the Fortress Specialty Cellulose Mill utilizing the licensed Mondelēz technology together with S2G's knowhow will be one of the lowest cost producers of xylitol globally.
Giovanni Iadeluca, President and Chief Executive Officer of Fortress Global, commented: "We are very pleased that a global leader such as Mondelēz has chosen to work with Fortress Global to commercialize this important technology for xylitol production. Mondelēz has agreed to an exclusive, worldwide license on mutually attractive commercial terms, including commitments in principle relating to the purchase of xylitol from the demonstration plant and a future commercial plant. Such support is important to enable Fortress Global to move forward confidently with the xylitol and complementary bioproducts demonstration project at its dissolving pulp mill."
In addition to the Mondelēz support, FortressAB is negotiating definitive grant, equity and loan funding agreements for the demonstration project with various organizations within the federal and provincial governments. The funding will support installation and operation of demonstration-scale equipment to produce xylitol for qualification and use by Mondelez and other customers. Fortress will be evaluating the production of complementary bioproducts over the course of the 3-year demonstration project.
About Fortress Global Enterprises
Fortress Global operates its dissolving pulp business at the Fortress Specialty Cellulose Mill located in Thurso, Québec, Canada, which also operates in the renewable energy generation sector through its cogeneration facility. Fortress Global operates its bioproducts business through FortressAB, with laboratory and pilot plant facilities in Vancouver, British Columbia, Canada, and Fortress Xylitol Inc., a special purpose company established to construct a demonstration plant to produce xylitol and complementary bioproducts at the Fortress Specialty Cellulose Mill.
About Mondelēz International
Mondelēz International, Inc. (NASDAQ: MDLZ) empowers people to snack right in approximately 160 countries around the world. With 2017 net revenues of approximately $26 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.
This press release contains certain forward-looking information that reflects the current views and/or expectations of Fortress Global with respect to its performance, business and future events, including statements regarding: the outcome of Fortress Global's financing applications and initiatives; the financial benefits, expected production capacity, expected timing and budget for completion of the bioproducts project at the Fortress Specialty Cellulose Mill; expectations relating to Fortress Global's business plans at the Fortress Specialty Cellulose Mill and the expected effects of the bioproducts project on the business of Fortress Global; the state of various bioproduct markets; and expectations regarding future global demand for xylitol and complementary bioproducts. The reader is cautioned that forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict and that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking information is based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which Fortress Global operates. Assumptions underlying Fortress Global's expectations regarding forward-looking information contained in this news release include, among others: Fortress Global's ability to complete the necessary financing to successfully implement its business plan in respect of the bioproducts project on satisfactory terms; the success, profitability and other expected benefits of the bioproducts project; the expected effects of the bioproducts project on the business of Fortress Global; that the bioproducts project will be economically viable and can be completed within the expected schedule and budget; and that the market conditions for xylitol and complementary bioproducts will follow expected trends. Investors are cautioned that all forward-looking information involves risks and uncertainties including, without limitation: that Fortress Global will not secure the necessary financing to complete its business plan in respect of the bioproducts project as planned or at all; that the bioproducts project will not be successful or profitable and will not meet expected production capacities, or be completed within the expected timeframes and within the expected budget; that Fortress Global may experience unforeseen delays, financing difficulties or costs that will impact its projects, operations, financial performance and liquidity; and those risks relating to our reputation, competition, changes in the market, potential downturns in economic conditions, dependence on major customers, fluctuations in the price and supply of raw material, foreign exchange fluctuations, labour, regulatory requirements and other risk factors listed from time to time in Fortress Global's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on statements comprising forward-looking information, which are qualified in their entirety by this cautionary statement. Fortress Global does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
SOURCE Fortress Global Enterprises Inc.
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