BOSTON, April 16, 2014 /PRNewswire/ -- Verde Media Group Inc. (OTC: VMGI) and its Biotech Division ("VMBD") announce they have secured an overseas contract in Asia to produce high value omega-3 oils using its proprietary microbial technology. The contract is between Butazyme LLC, wholly owned subsidiary of VMBD, and Phoenix Energy ("PXE") in Asia and will be jointly developed to commercial scale. Butazyme will receive a sum of $500,000.00 payment for technology transfer and 10% royalty as licensing fees per annum.
Butazyme has initially conducted technical feasibility for Asia project via Biothane, a subsidiary of Veolia Water Solutions & Technologies, in the US. The project will involve scaling the technology to 20,000 liters in phase-I followed by 200,000 liter scale up in phase-II. PXE has committed financing for Butazyme technology scale-up and 300 tons per day of feedstock that can be converted to 1000 tons per annum of Omega-3 oils. The commercial production will generate revenues upward of $30M per annum with the local feedstock secured for 25 years.
Dr. Abidi, Ph.D. CEO of VMBD stated, "The strategic relationship with Phoenix Energy validates our business model to scale the technology with global licensing to industrial users. The contract will not only scale the technology to commercial stage but will generate multiple streams of revenues for VMGI. We anticipate a similar business model in the US and elsewhere for the $34.7 billion omega-3 market."
About Verde Media Group Inc.
Verde Media Group Inc. is a publicly traded company listed on the OTC Markets trading under the stock symbol: VMGI. Verde Media Group Inc. The Company consists of three divisions:
The innovative Agency division services- public relations, marketing, sales and transaction functions for corporate clientele.
The VMBD division undertakes the business of developing and producing high value bio-products from renewable biomass. The focus and criterion is to develop proprietary microbial technologies with low risk scale-up methods employing low cost feedstock. VMBD will further develop the derivative and ester forms of CBD for increase in potency and their use in different delivery systems, including sublingual, inhaled dosage forms and blending with food products.
The Company operates a managed media company with production, distribution, development, and acquisition functions for film and television.
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The results described herein cannot be guaranteed. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions.
SOURCE Verde Media Group Inc.