Carbiotix announced that the Company has commenced a pilot study with the same leading US food & beverage producer mentioned in a March 6th press release. The pilot study is the second step in the NutraCycle Pre-Study and commences only after a successful laboratory study. In this case, the laboratory study verified both a viable process and upcycled Carbersol prebiotic ingredient that also has the potential to replace sugars, texturizers and provide other health benefits.

The pilot study will validate the process and Carbersol prebiotic ingredient developed at pilot-scale and will be carried out over the next two months with the goal of entering the NutraCycle Joint Development phase. The benefits of the NutraCycle service for food & beverage and ingredient companies are severalfold. It is a relatively low cost and low risk approach to generating new revenue streams and achieving higher pricing power for existing products.

For example, it is an opportunity to upcycle side stream products into high value Carbersol prebiotics that can be used to fortify existing products, develop new products, and be sold as an ingredient, as well increase the relative protein content and value of residuals. These Carbersol prebiotics can also reduce the need for added sugars and texturizers and in some cases provide additional health benefits. The pilot study is the second step in the NutraCycle Pre-Study to determine if a side-stream product can be upcycled into a prebiotic that can be primarily utilized in the fortification of new and existing products.

The pilot study only commences upon the completion of a successful laboratory study, with both steps completed typically over a 3-month period. Successful Pre-Studies lead to NutraCycle Joint Development Agreements between Carbiotix and a plant-based food & beverage or ingredient producer. At this stage, Carbiotix provides support with regards to process design - based upon Carbiotix IP and trade secret, product formulation and development, scientific validation and regulations, and technology partner building.

Once a Carbersol process has been built, Carbiotix provides continued support with regards to operations, process optimization, product development and customer leads through a royalty and service agreement.