Enzymotec Updates Automatic Extension of Its Joint Venture Agreement With AAK Until December 31, 2019
January 04 2016 - 8:00AM
Enzymotec Ltd. (NASDAQ:ENZY) (the “Company”), a developer,
manufacturer and marketer of innovative bio-active lipid based
nutritional ingredients and medical foods, reports that neither it
nor AarhusKarlshamn AB, or AAK, a Sweden-based, global producer of
specialty oils that is Enzymotec's joint venture partner in
Advanced Lipids AB, has issued a notice of termination of the joint
venture agreement (the “JV Agreement”) to the other party by the
December 31, 2015 deadline that is specified under the terms of the
JV Agreement. Hence, under its terms, the JV Agreement has been
automatically extended until December 31, 2019.
The Company was also recently notified that the
International Court of Arbitration of the International Chamber of
Commerce has extended the date for rendering its final award
related to the arbitration proceedings in connection with the JV
Agreement from December 31, 2015 to February 29, 2016.
About Enzymotec Ltd.Enzymotec
is a leading global supplier of specialty lipid-based products and
solutions. The Company develops, manufactures, and markets
innovative bio-active lipid based nutritional ingredients and
medical foods, driven by a deep core of cutting-edge, proprietary
technologies intended to improve people’s health. For more
information, visit www.enzymotec.com.
Forward Looking Statements This
release may contain forward-looking statements, which express the
current beliefs and expectations of Company management. Such
statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include the following risks: A high proportion of
the sales of the InFat product is sold to end users in China and to
a single company; Growth in the Chinese economy has moderated and
this slowdown and related volatility could adversely impact demand
in China for our products; The demand for products based on Omega-3
and in particular, premium products, such as krill oil, has
declined and may continue to decline following a significant
increase in manufacturing capacity by manufacturers of these
products, resulting in intense competition and price pressure; Our
offering of products as "medical foods" in the United States may be
challenged by regulatory authorities; We rely on our Swedish joint
venture partner to manufacture InFat and certain matters related to
the joint venture are the subject of disagreement in an arbitration
proceeding; We are subject to a degree of customer concentration
and our customers do not enter into long-term purchase commitments
with us; We depend on third parties to obtain raw materials, in
particular krill, necessary for the production of our products; We
are dependent on a single facility that houses the majority of our
operations; We may have to pay royalties with respect to sales of
our krill oil products in the United States or Australia and any
infringement of intellectual property of others could also require
us to pay royalties; Potential future acquisitions of companies or
technologies may distract our management, may disrupt our business
and may not yield the returns expected; We anticipate that the
markets in which we participate will become more competitive and we
may be unable to compete effectively; We may not be able to
successfully expand our production or processing capabilities; Our
ability to obtain krill may be affected by conservation regulation
or initiatives; Our product development cycle is lengthy and
uncertain, and our development or commercialization efforts for our
products may be unsuccessful; and other factors discussed under the
heading "Risk Factors" in the Company's Form 20-F filed with the
Securities and Exchange Commission on March 2, 2015.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
made only as of the date hereof, and the Company undertakes no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact:
The Ruth Group
Tram Bui / Lee Roth
Phone: 646-536-7035 / 7012
tbui@theruthgroup.com
lroth@theruthgroup.com
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