Virtex Grain Farms Ltd. signed a binding asset purchase agreement to acquire land, building, and certain canola crushing assets from BioExx Specialty Proteins Ltd. (TSX:BXI) for CAD 7.5 million on July 3, 2013. In a related transaction, BioExx Specialty also agreed to sell certain protein processing equipment and ancillary assets for CAD 3.5 million. The closing is subject to customary terms, including completion of definitive documentation and approval of secured creditors.

As of October 1, 2013, Virtex has submitted CAD 0.21 million as non-refundable deposit. The transaction is expected to close on or about October 31, 2013. BioExx intends to use the proceeds of the asset sales to fully repay its first secured creditor, in the amount of approximately CAD 7.2 million plus any additionally accrued interest to the repayment date.

The balance of the proceeds is intended to be allocated to service other debts as required, and for general working capital. As of November 15, 2013, the court approved the sale to 508572 Alberta. Paul D. Guy of WeirFoulds LLP acted as legal advisor for BioExx Specialty.