PanGenex plans to expand its retail product line with the addition of spirulla

Dec 1 2009

PanGenex Corporation (Pink Sheets:PGCX), a global nutraceutical and dietary supplement manufacturer and marketer, announced today that it has solidified plans to expand its retail product line with the addition of spirulla. Spirulla, a blue green algae, is an abundant and sustainable natural source of protein, essential fatty acids, vitamins, B12 and minerals that has been used as a dietary health supplement for centuries. Through a licensing agreement with Greenr U Corp., PanGenex has access to a state-of-the-art algae growing system to begin producing its own high-quality spirulla. The Company plans to incorporate spirulla into select product lines as well as develop an array of new, heart-healthy nutraceutical and dietary supplements featuring spirulla.

“Spirulla is considered a 'superfood,' packed with 100% natural energy-boosting ingredients. We believe a move into the $600 million spirulla market is a major step toward sustaining long-term growth,” said John Stanton, Chairman of PanGenex. “Our goal is to reach sales of $2 million in our first year of production and increase exponentially as growing acreage is added and our additional products are brought to market.”

PanGenex plans to develop a variety of spirulla-infused heath products ideal for health-conscious consumers, aging baby-boomers, vegetarians and more. “We believe we can produce the highest quantity and purest form of spirulla available on the market today. Our algae will be grown in nutrient-enhanced fresh water within a closed loop vertical system, thus avoiding the contamination typical of outdoor ponds. We expect to deliver our first products from this production facility in early summer 2010. Our scientists and product consultants are researching strains for other specialized beneficial use that a dedicated facility will allow us to grow to our product specifications.”

PanGenex initially expects to grow approximately 40,000 gallons of oil or 10,000 lbs of spirulla powders per acre per year. Dry powder spirulla sells for in excess of $50 per lb, while other specialized strains sell for in excess of $400 per lb. Other uses for algal oils and powder include protein enhancement products as part of the $27 billion sports nutrition market and in oil capsules as a replacement for certain types of liquid fish oil capsules. PanGenex products will be marketed to health and whole food stores and through its various existing outlets.