Health Enhancement Products, Inc. Sponsors Research at Arizona Center for Algae Technology and Innovation and ATP3 to Facilitate Bioactives Commercial Production


BLOOMFIELD HILLS, MI--(Marketwired - Nov 12, 2013) -  Health Enhancement Products, Inc. (OTCBB: HEPI), which investigates and licenses algae-derived, high-value bioactive molecules that benefit human and animal health, has formalized a one-year sponsored research project with the Arizona Center for Algae Technology and Innovation (AzCATI), located at the Arizona State University Polytechnic campus in Mesa, Ariz., and the Algae Test-bed Public-Private Partnership (ATP3).

This research project is the next step toward commercialization of HEPI's unique bioactive molecules.

The scope of the research project includes:

  • Development of a technique to rapidly screen organisms for bioactivity
  • Development of methods for quantification of bioactive compounds
  • Investigate the mode of synthesis for bioactive compounds
  • Mass-culturing organisms that produce bioactive compounds for bovine and canine trials

"In HEPI's years of research we have identified bioactive molecules with verifiable health benefits for humans and animals that have attracted quite a lot of attention from potential licensors," said HEPI CEO Andrew Dahl. "Now is the appropriate time to commercialize the research, beginning with the cultures and organisms responsible for creating the bioactive compounds. "The collaboration with Dr. Thomas Dempster and Dr. Henri Gerken at AzCATI/ATP3 has yielded a positive outcome from the very start. We were able to immediately kick off a complex and aggressive development program that will get our product validated and market-ready within a reasonable timeframe. The responsiveness and innovative thinking is an added bonus."

"The research we are doing at AzCATI/ATP3 on HEPI's proprietary molecules accelerates the process of going to market as we are refining our knowledge about the bioactives and optimizing culture growth, allowing for the scale-up to commercial production," said Dr. Thomas A. Dempster, a Research Associate Professor at ASU's AzCATI and the ATP3 test-bed site coordinator.

The mass-culture process requires a considerable effort to determine the most cost-efficient and timely production techniques, which in the case of the target organisms, may require multi-stage culturing and extraction.

"We're incorporating real-world financial modeling into the development process, focusing on capital investment, cost of operations, life cycle analysis and everything in between," stated Dahl. "The business model doesn't include any subsidies, grants or assistance that can distort the ROI and operating margins. We will certainly take advantage of any program or incentive for which we qualify during the developmental and scale-up phase, but the long-term operating model must stand on its own from the very beginning. That's why HEPI has only pursued high-value nutrition and health applications over the last few years."

"We're able to look at different culturing techniques, procedures and outcomes, assist with cost modeling, and suggest appropriate solutions in a timely and efficient manner," said Dempster. "We look forward to working with HEPI to determine a feasible production process that meets all compliance and financial benchmarks."

"Let's remember that a 'sustainable' business model really means a profitable business model, because without the prospect of profitability, it's difficult, if not impossible, to attract capital, attract top talent, meet operating expenses and fuel any meaningful growth," added Dahl. "Like any other form of agriculture or aquaculture, algae production will inevitably mature into a high-volume, capital-intensive model where process control and efficiency will make the difference between a solid return and a hatful of excuses."

About Health Enhancement Products, Inc.

Health Enhancement Products, Inc. (OTCBB: HEPI) is a Michigan-based health and wellness company engaged in the development of natural bioactive compounds for use as dietary supplements and food ingredients, as well as biologics for medicinal and pharmaceutical applications in humans and animals. The Company's scientific efforts are focused on the metabolic aspects of oxidation and inflammation, with a parallel program to validate and license products for healthy cholesterol balance. The newly revised website address is www.health-enhancement-products.com.

About AzCATI and ATP3

AzCATI serves as a national test-bed for research, testing, and commercialization of algae-based products. These include biofuels, pharmaceuticals, nutraceuticals, and other algae biomass co-products. AzCATI provides open test and evaluation facilities for the algae industry and research community. The center can assess the performance of individual and combined unit operations across the algal value chain. AzCATI is embedded within ASU's College of Technology and Innovation and is part of the LightWorks initiative, supported by ASU's Office of Knowledge Enterprise Development.

AzCATI leads the ATP3 consortium with support from national labs and academic and industrial partners including the National Renewable Energy Laboratory (NREL), Sandia National Laboratories, Cellana LLC, Touchstone Research Laboratory, Valicor Renewables, Cal Poly San Luis Obispo, Georgia Institute of Technology, University of Texas at Austin, and Commercial Algae Management.

ATP3 is funded by a $15 million competitive grant from the Bioenergy Technologies Office within the US Department of Energy. The ATP3 collaborative is a network of regional test-beds designed to empower knowledge creation and dissemination within the algal research community, accelerate innovation, and support growth of the nascent algal fuels industry. 

Safe Harbor Statement

Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the timing of completion of a trial, actual future clinical trial results being different than the results the company has obtained to date, and the company's ability to secure funding. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.