Functional Technologies Corp. (TSX-V:FEB), a Vancouver-based biotech that has been commercializing a yeast-based product that prevents the formation of toxins in baked goods and beverages, is seeking creditor protection while it reorganizes.
The company is unable to meet its obligations to secured and unsecured creditors, the company stated in a press release. It is therefore seeking protection under the Bankruptcy and Insolvency Act.
“The company’s intent in filing the notice, and later the proposal, is to seek to restructure its affairs and make an arrangement with its creditors in order to carry on its business,” the company stated in a press release.
The biotech has commercialized one yeast-based product that prevents the formation of the hydrogen sulphide created in the fermentation process of wine making, and which causes a rotten-egg odour.
Another product in the pre-commercialization stage prevents the formation of acrylamide – a byproduct in baking that is now known to be a carcinogen.
Functional Technologies shares were trading at $0.07 per share at close of markets Friday.
