Level #2: Bio-Extraction Process The Bio-Extraction Process, patented in April of 2002, is Biorefining, Inc.'s intermediate level of processing. This technology economically and efficiently processes virtually any residual plant material into value-added components, mainly carbohydrates or specialty sugars, functional fibers, gums and pectin. These components are currently used in applications ranging from food thickening to starting materials and ingredients for dietary supplements, nutritionally enhanced foods, and the most cutting-edge pharmaceutical applications. The Bio-Extraction Process uses minimal water and is extremely environmentally friendly compared to wet chemistry methods currently used to extract these products. Biorefining, Inc. intends to build a functional fiber and specialty sugars business "The House of Fiber" utilizing its Bio-extraction technology to further process sugar beet pulp into nutritional dietary fiber. The "softness" of the Company’s process has produced a very different fiber with unique functionality and uses vs. the dietary fibers currently available on the market. Initially the Company will focus on the two largest fiber-use sectors; the food ingredient and pet food ingredient industries. Biorefining intends to use toll manufacturing to produce the product and a network of independent food ingredient representatives to market its functional fiber. This approach will allow the Company to build its sales volume and profitability while avoiding the capital costs associated with building a production facility and an internal sales force. Similar functional dietary fibers will be sequentially derived using other feedstocks. These include corn fiber, soy fiber, oat fiber and other processing residues. Each of these feed stocks will provide a unique fiber with unique functionality. In the case of corn fiber, our product will be high in Arabinoxylan and oat fiber will be high in Beta Glucan. Many other opportunities exist to expand the line of fibers that can be manufactured and sold by Biorefining, Inc.
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