Navamedic’s 100 percent owned subsidiary ChitiNor AS has received notice from Innovasjon Norge (Innovation Norway) that it will grant support of NOK 2 million plus NOK 2 million in loans to the establishment of a chitin production facility in Senjahopen in Northern Norway. This covers a significant share of the capital expenditure in the project, which is expected to be in regular production from the beginning of 2007.
(Lysaker, Norway, 11 May 2006) Navamedic in January announced that it had entered into an agreement with the Nergård Group to build a chitin factory adjacent to Nergård’s shrimp peeling facilities at Senjahopen. Chitin from shrimp shells is the starting material for production of glucosamine. This is the active pharmaceutical ingredient in Navamedic’s product, which in January was approved for medical treatment of osteoarthritis symptoms in 20 European countries.
-We aim to become the first fully vertically integrated player in the glucosamine industry, and believe the proprietary production technology we are developing will generate a lasting competitive advantage. We are grateful for the support from Innovasjon Norge, which will cover a significant part of the investments in the chitin facilities, says CEO Øyvind W. Brekke in Navamedic.
Navamedic has already signed a Letter of Intent to sell the first year’s chitin production to Lytone Inc. in Taiwan, as the company will not immediately put the chitin to use in its own proprietary production of glucosamine HCl.
Navamedic was listed on the SMB list on Oslo Stock Exchange on 31 March 2006.