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PURE Bioscience (PURE) Regains Compliance with Nasdaq Listing Requirements
PURE Bioscience, Inc. (NASDAQ: PURE), the creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today announced it has regained compliance with Nasdaq listing requirements, and will continue trading on the Nasdaq Capital Market.
On September 21, 2012, the Company received a letter from the Nasdaq Listing Qualifications Staff stating PURE Bioscience, Inc. has regained compliance with the applicable minimum shareholders’ equity rule, as required by the Nasdaq Hearings Panel’s decision dated June 21, 2012, as modified on August 10, 2012 and September 11, 2012. The Staff also concluded that the Company is in compliance with all other applicable requirements set forth in such decision and required for listing on The Nasdaq Capital Market. Accordingly, the Nasdaq Hearings Panel has determined to continue the listing of the Company’s securities on The Nasdaq Stock Market and has closed this matter.
About PURE Bioscience, Inc.
PURE Bioscience, Inc. develops and markets technology-based bioscience products that provide solutions to numerous global health challenges, including Staph (MRSA). PURE’s proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate-based antimicrobials, represent innovative advances in diverse markets and lead today’s global trend toward industry and consumer use of “green” products while providing competitive advantages in efficacy and safety. Patented SDC is an electrolytically generated source of stabilized ionic silver, which formulates well with other compounds. As a platform technology, SDC is distinguished from competitors in the marketplace because of its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it. PURE is headquartered in El Cajon, California (San Diego metropolitan area). Additional information on PURE is available at www.purebio.com.
Longwei Petroleum (LPH) to Complete Purchase of Huajie Petroleum Assets
Company recently reported revenues of $510.6 million and net income of $65.1 million for the fiscal year ended June 30, 2012; Book Value reaches $3.31 per share
TAIYUAN CITY, China, Sept. 24, 2012 /PRNewswire-FirstCall/ — Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) (“Longwei” or the “Company”), an energy company engaged in the storage and distribution of finished petroleum products in the People’s Republic of China (“PRC”), today announced that it will complete the purchase of the assets of Huajie Petroleum Co., Ltd. (“Huajie”), a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity, by the end of this month.
Longwei will acquire the assets of Huajie for a total purchase price of RMB 700 million (approximately US $110.6 million). The Company has agreed with the seller that the final payment of RMB 150 million (approximately US $23.7 million) will be paid on or before September 30, 2012. The Company currently has paid RMB 550 million (approximately US $86.9 million) on deposit for the purchase.
“We are pleased to close on the Huajie asset purchase without dilution to our shareholders,” said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. “We have chosen to move forward at this time to use our own cash to close on the purchase and put our capital to work now at the new facility.”
The Huajie assets are located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, PRC. The assets include fuel storage tanks with a 100,000-metric-ton capacity with accessory facilities and equipment, delivery and distribution platforms, including a dedicated rail spur and a vehicle loading and unloading station. The purchase also includes a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line. The new facility is in a growing industrial and mining region, approximately 200 kilometers to the north of Taiyuan.
“We have been balancing our working capital to take advantage of petroleum pricing opportunities in the market, as well as balancing the funding required to complete the Huajie purchase,” said Michael Toups, Chief Financial Officer of Longwei. “Based on our inventory management and first fiscal quarter 2013 cash flow, we are confident to close the Huajie asset purchase at this time. We were exploring financing options available to us, but decided the economics were not right at this time.”
Cai Yongjun, Chairman and Chief Executive Officer of Longwei, stated, “This acquisition nearly doubles our storage capacity to a total of 220,000 metric tons and extends our reach into the fast-growing industrial area of northern Shanxi Province. With the addition of the Huajie facility, we have strengthened our lead as the largest non-state-owned fuel storage and distribution business in the province and are better positioned to capitalize on the demand for petroleum products in our regional market.”
“The northern Shanxi region’s growing industrial and vehicle market demand, combined with our proven ramp-up performance of our Gujiao facility since 2010, which has now grown to account for approximately 48% of our total product sales, or US $233.8 million, strengthens our confidence that we can quickly ramp up sales at the Huajie facility,” stated Mr. Toups.
About Shanxi Province, PRC
The Company’s operations are concentrated in the central PRC, primarily Shanxi Province. Shanxi is the leading coal-producing region in the PRC. The region is mountainous and has no oil reserves, pipelines or refineries within the province. Therefore, petroleum products have to be brought in from outside of the province via rail or truck, either from refineries in the neighboring provinces or from the relatively more numerous refineries in the coastal provinces of the northeast PRC. Consequently, wholesale distributors are required to commit significant resources to transportation, logistics and storage. The province is dependent on the timely delivery of petroleum products to support its growing industrial and consumer base.
Taiyuan (the capital city of Shanxi Province) and the outlying area have a population of approximately 5 million people. Shanxi Province has a population of approximately 34 million people and is surrounded by large populated provinces, including the PRC capital city of Beijing, which represent a total combined population base of greater than 300 million people. Taiyuan is approximately 500 km southwest of Beijing.
The GDP growth rate for Shanxi during 2011 was 13%, according to the China Daily, March 13, 2012, and it is expected to outpace the general economic growth in the PRC for 2012. The provincial government has estimated the fixed asset investment in Shanxi to be RMB 5 trillion (approximately $790 billion) over the next five years, according to the China Daily, September 13, 2011. The provincial government also recently announced an additional RMB 1 trillion (approximately $158 billion) in local development projects as part of the region’s industrial stimulus plan, according to China Securities News, August 23, 2012. The Company believes its locations within Shanxi Province are advantageous to the growth of its business model.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in the People’s Republic of China. The Company’s oil and gas operations consist of transporting, storing and selling finished petroleum products, entirely in the PRC. The Company’s headquarters are located in Taiyuan City, Shanxi Province. The Company has a storage capacity for its products of 120,000 metric tons located at storage facilities in Taiyuan and Gujiao, Shanxi. The Company’s Taiyuan and Gujiao facilities can store 50,000 metric tons and 70,000 metric tons, respectively. The Company has the necessary licenses to operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The Company’s storage tanks have the largest storage capacity of any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to transportation companies, coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue from agency fees by acting as a purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company’s facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of “Asia’s 200 Best Under a Billion” from a universe of 15,000 companies. Forbes ranked the companies based on sales growth, earnings growth and return on equity in the past 12 months and over three years. As was reported, Longwei’s three-year track record is 45% sales growth, 28% earnings per share growth and 28% return on equity. The Forbes article can be found at: http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion.
For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com. You may register to receive Longwei Petroleum Investment Holding Limited’s future press releases or request to be added to the Company’s distribution list by contacting Dave Gentry at info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei’s operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
mtoups@longweipetroleum.com
http://www.longweipetroleum.com
Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
info@redchip.com
http://www.redchip.com
SOURCE Longwei Petroleum Investment Holding Ltd.
Digital River to Acquire LML Payment Systems (LMLP)
Digital River, Inc. (NASDAQ: DRIV), the revenue growth experts in global cloud commerce, and LML Payment Systems Inc. (NASDAQ: LMLP), a leading provider of electronic payment processing, risk management and authentication services, announced the signing of a definitive agreement whereby Digital River will acquire LML Payment Systems Inc. in an all cash transaction valued at U.S. $3.45 per share, or an aggregate purchase price of approximately U.S. $102.8 million.
The acquisition joins two complementary card-not-present payments businesses, positioning Digital River to further capitalize on its global success in online payment processing. Digital River has traditionally focused on online payment processing for enterprise and mid-sized merchants. LML Payment Systems processes online payments for more than 14,000 small to mid-sized merchants. The combination will enable Digital River to broaden its online payment services to businesses of all sizes. Collectively, the companies will handle more than $20 billion in online transactions for tens of thousands of companies across a broad range of industries, including software, consumer electronics, government, utilities, event registration and mobile payments.
Digital River intends to leverage LML Payment Systems’ proven ecosystem of banking, merchant, reseller and developer relationships to not only expand its Digital River World Payments solution, but also extend LML Payment Systems’ white-label channel solution and mobile payments solution. At the same time, LML Payment Systems intends to access Digital River’s broad portfolio of global payment methods to offer its clients a wider selection of international payment options and more opportunities to expand their online businesses worldwide.
“This investment reflects our ongoing commitment to expanding our Digital River World Payments solution and continuing to diversify our global commerce business across multiple vertical markets,” said Joel Ronning, Digital River’s CEO. “Each company has a strong reputation in the online payments market, robust platform and deep expertise in card-not-present processing. Our joint technologies and expert resources will create even more value for our combined client bases – helping them reduce time to market and providing access to new payments technologies and geographies.”
Under the terms of the agreement, LML Payment Systems shareholders will receive U.S. $3.45 per share in cash consideration (the “Consideration”) and all options and warrants will be acquired for cash consideration equal to the Consideration less the exercise price of such option or warrant. The acquisition has been approved by the boards of directors of both companies and is to be completed through a plan of arrangement under the Business Corporations Act (British Columbia). The closing of the transaction is subject to approval of two-thirds of the LML shareholder votes cast. The transaction is subject to satisfaction of other customary terms and conditions and is expected to close during the fourth quarter in 2012 or the first quarter in 2013. The acquisition is expected to be accretive to Digital River’s earnings in its 2013 fiscal year.
“LML Payment Systems has built a highly-regarded payments business over the last 12 years and we believe the transaction with Digital River is in the best interests of our clients, shareholders and employees. In addition, it will deliver increased value to our channel partners and merchants as we enhance both companies’ product roadmaps,” said Craig Thomson, president of LML Payment Systems. “Digital River has earned a reputation as a global e-commerce leader, providing online payment services and helping companies grow their online businesses in international markets for more than 15 years. They share our commitment to the online payments market and to backing our clients with innovative new products as well as proven solutions for entering emerging geographies.”
For this transaction, RBC Capital Markets served as financial advisor to Digital River, and William Blair & Company, L.L.C. served as financial advisor to LML Payment Systems.
About LML Payment Systems Inc.
LML Payment Systems Inc., through its Canadian subsidiary Beanstream Internet Commerce Inc., and US subsidiaries Beanstream Internet Commerce Corp and LML Payment Systems Corp., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. The company provides credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement. For more details about LML Payment Systems, visit www.lmlpayment.com.
About Digital River, Inc.
Digital River, Inc., the revenue growth experts in global cloud commerce, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running a global commerce operation. The company’s comprehensive platform offers site development and hosting, order management, global payments, cloud-based billing, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit its corporate website, follow the company on Twitter or call +1 952-253-1234.
No stock exchange or regulatory authority has in any way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of the transactions contemplated by the agreement. If all approvals are obtained, all conditions are met, and the transaction is completed, LML Payment Systems will be delisted from NASDAQ.
Information About the Transaction
A material change report, which provides more details on the transaction, will be filed with the Canadian provincial securities regulatory authorities and with the U.S. Securities and Exchange Commission and will be available at www.sedar.com and at www.sec.gov.
LML Payment Systems also intends to file a proxy statement with the United States Securities and Exchange Commission (“SEC”) in connection with the Arrangement. Shareholders of LML Payment Systems are urged to read the proxy statement when it becomes available, because it will contain important information. Shareholders of LML Payment Systems will be able to obtain a free copy of the proxy statement, as well as other filings containing information about LML Payment Systems and the proposed transaction, when available, without charge, at the SEC’s Internet site (www.sec.gov). In addition, copies of the proxy statement and other filings containing information about LML Payment Systems and the proposed transaction can be obtained, when available and without charge, by directing a request to LML Payment Systems, Attention: Investor Relations, 1140 West Pender Street, Suite 1680, Vancouver, British Columbia V6E 4G1, by phone at (800) 888-2260, or on LML Payment Systems’ website at www.lmlpayment.com.
Participants in Solicitation
Digital River, LML Payment Systems, and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from LML Payment Systems’ shareholders in respect of the proposed transaction. You can find information about Digital River’s directors and executive officers in Digital River’s definitive annual proxy statement filed with the SEC on April 18, 2012. You can obtain free copies of Digital River’s annual proxy statement by contacting Digital River’s investor relations department. You can find information about LML Payment Systems’ directors and executive officers in LML Payment Systems’ definitive annual proxy statement filed with the SEC on July 31, 2012. You can obtain free copies of LML Payment Systems’ annual proxy statement, and LML Payment Systems’ proxy statement in connection with the proposed transaction (when it becomes available), by contacting LML Payment Systems’ investor relations department. Additional information regarding the interests of LML Payment Systems’ directors and executive officers will be included in the proxy statement and the other relevant documents filed with the SEC when they become available.
Forward Looking Statements
In addition to the historical information contained herein, this press release contains forward-looking statements, such as statements regarding Digital River’s and LML Payment Systems’ anticipated future performance and the parties’ ability to close the transaction, including the ability of Digital River and LML Payment Systems to consummate the transaction on the terms described in this press release (or at all) and to integrate their business and product offerings. Such forward-looking statements can be identified by the words “believes,” “intends,” “expects” and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Digital River, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties, include, but are not limited to, those relating to: the ability to satisfy the conditions to the proposed transaction between Digital River and LML Payment Systems, the ability to successfully complete the proposed transaction in accordance with its terms and in accordance with the expected schedule, the ability to obtain shareholder, regulatory or other approvals for the proposed transaction on the terms proposed and on the anticipated schedule, diversion of management attention on transaction-related issues, impact of the transaction on relationships with customers, suppliers and employees, the financial performance of Digital River and LML Payment Systems following completion of the proposed transaction, the ability to successfully integrate the businesses of Digital River and LML Payment Systems, the ability to realize anticipated benefits of the proposed transaction (including expected cost savings and other synergies), the risk that anticipated benefits of the proposed transaction may take longer to realize than expected, and other risks such as the variability in Digital River’s and LML Payment System’s operating results and competition in the electronic commerce and payments markets. Additional information concerning other risk factors is contained in the parties’ most recent Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings.
Many of these risks, uncertainties and assumptions are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made, and Digital River and LML Payment Systems undertake no obligation to update publicly or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this communication. All subsequent written and oral forward-looking statements concerning Digital River or LML Payment Systems, the proposed transaction, or other matters and attributable to Digital River or LML Payment Systems or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.
Cardium (CXM) To Present At 2012 Noble Financial Life Sciences Investor Conference
SAN DIEGO, Sept. 24, 2012 /PRNewswire/ — Cardium Therapeutics (NYSE MKT: CXM) today announced that Christopher J. Reinhard, Chairman & CEO will present at the BioX Noble Financial Life Sciences Exposition being held at the University of Connecticut, Stamford Campus on September 24 – 25, 2012. Cardium’s video webcast presentation and copy of the presentation will be available following the conference on Thursday, September 27, 2012 at http://phx.corporate-ir.net/phoenix.zhtml?c=77949&p=irol-calendar, or through the Noble Financial website at www.noblefcm.com. You will require a Microsoft SilverLight viewer (a free download is available) to participate. The investor presentation is now available at http://phx.corporate-ir.net/phoenix.zhtml?c=77949&p=irol-presentations.
(Logo: http://photos.prnewswire.com/prnh/20051018/CARDIUMLOGO)
About Cardium
Cardium is an asset-based health sciences and regenerative medicine company focused on the acquisition and strategic development of innovative products and businesses with the potential to address significant unmet medical needs and having definable pathways to commercialization, partnering or other economic monetizations. Cardium’s current portfolio includes the Tissue Repair Company, Cardium Biologics, and the Company’s in-house MedPodium Health Sciences healthy lifestyle product platform. The Company’s lead commercial product Excellagen® topical gel for wound care management, recently received FDA clearance for marketing and sale in the United States. Cardium’s lead clinical development product candidate Generx® is a DNA-based angiogenic biologic intended for the treatment of patients with myocardial ischemia due to coronary artery disease. In addition, consistent with its capital-efficient business model, Cardium continues to actively evaluate new technologies and business opportunities. In July 2009, Cardium completed the sale of its InnerCool Therapies medical device business to Royal Philips Electronics, the first asset monetization from the Company’s biomedical investment portfolio. News from Cardium is located at www.cardiumthx.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release or the referenced investor presentation are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from expectations. For example, there can be no assurance that results or trends observed in one clinical study or procedure will be reproduced in subsequent studies or in actual use; that new clinical studies will be successful or will lead to approvals or clearances from health regulatory authorities, or that approvals in one jurisdiction will help to support studies or approvals elsewhere; that the company can attract suitable commercialization partners for our products or that we or partners can successfully commercialize them; that our product or product candidates will not be unfavorably compared to competitive products that may be regarded as safer, more effective, easier to use or less expensive or blocked by third party proprietary rights or other means; that the products and product candidates referred to in this report or in our other reports will be successfully commercialized or will enhance our market value; that new product opportunities or commercialization efforts will be successfully established; that third parties on whom we depend will perform as anticipated; that we can raise sufficient capital from partnering, monetization or other fundraising transactions to maintain our stock exchange listing or adequately fund ongoing operations; or that we will not be adversely affected by these or other risks and uncertainties that could impact our operations, business or other matters, as described in more detail in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.
Copyright 2012 Cardium Therapeutics, Inc. All rights reserved.
For Terms of Use Privacy Policy, please visit www.cardiumthx.com.
Cardium Therapeutics®, Generx®,Cardionovo™, Tissue Repair™, Gene Activated Matrix™, GAM™, Excellagen®, Excellarate™, Osteorate™, MedPodium®, Appexium®, Linee®, Alena®, Cerex®, D-Sorb™, Neo-Energy®, Neo-Carb Bloc®, Neo-Chill™, and Nutra-Apps® are trademarks of Cardium Therapeutics, Inc. or Tissue Repair Company.
SOURCE Cardium Therapeutics
Dejour Energy (DEJ) Adds to NW Colorado Exploration Leaseholds
Dejour Energy (USA) Corp. a wholly owned subsidiary of Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ), an independent oil and natural gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions, today announced that it has added ~31,000 net acres to its current exploration landholdings in NW Colorado through a restructuring of its Exploration Joint Venture with Brownstone Energy, in place since 2008. Dejour/Brownstone will however retain their respective 71.5%/28.5% interests in the 2200 acre Kokopelli Project, where the Dejour Federal 6/7-13-21 well is currently drilling. Dejour now holds over 150,000 net acres of oil and gas leaseholds in NE British Columbia and NW Colorado.
With the conclusion of this deal, Dejour regretfully announces the departure of Richard Patricio, VP of Brownstone, as a director of Dejour and member of the audit committee. Over the last 4 years Richard has made many valuable contributions to the Dejour Board and to its various committees. His presence was very much appreciated. Dejour wishes Mr. Patricio every success in the future. The Company plans to announce a realignment of its Board of directors prior to the next AGM.
About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America’s Piceance Basin (approximately 140,000 net acres) and Peace River Arch regions (approximately 11,000 net acres). Dejour’s seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders’ best advantage. Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange MKT (NYSE MKT: DEJ) and Toronto Stock Exchange (TSX: DEJ).
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
Follow Dejour Energy’s latest developments on:
Facebook http://facebook.com/dejourenergy and Twitter @dejourenergy
SunLink (SSY) Announces Fiscal 2012 Fourth Quarter and Full-Year Results
SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced earnings from continuing operations for its fourth fiscal quarter ended June 30, 2012 of $4,213,000, or $0.45 per fully diluted share, compared to a loss from continuing operations of $10,708,000, or a loss of $1.32 per fully diluted share, for the quarter ended June 30, 2011. The results for the quarter ended June 30, 2012 include $7,508,000 of pre-tax Medicare electronic health records incentive payments. The results for the quarter ended June 30, 2011 included a pre-tax impairment charge of $13,347,000 relating to the April 2008 acquisition of the company’s Specialty Pharmacy Segment. Net earnings for the quarter ended June 30, 2012 were $5,114,000, or $0.54 per fully diluted share, compared to a net loss of $11,255,000, or $1.39 per fully diluted share, for the quarter ended June 30, 2011. The results for Memorial Hospital of Adel, which was sold on July 1, 2012, are included in discontinued operations for all periods shown.
Consolidated net revenues from continuing operations for the quarters ended June 30, 2012 and 2011 were $34,635,000 and $34,667,000, respectively, a decrease of 0.1% in the current year’s quarter. The Healthcare Facilities Segment net revenues in the current quarter of $26,504,000 decreased $1,319,000, or 4.7%, compared to $27,821,000 from the prior year. The Specialty Pharmacy Segment revenues of $8,131,000 in the quarter ended June 30, 2012 increased $1,287,000, or 18.8% from the prior year.
The company had an operating profit from continuing operations for the quarter ended June 30, 2012 of $7,515,000, compared to an operating loss from continuing operations for the quarter ended June 30, 2011 of $15,754,000, which included the $13,347,000 impairment relating to the Specialty Pharmacy Segment. Excluding the impairment charges, the operating margin increased in the current year’s quarter primarily due to the $7,508,000 of electronic health records incentive payments compared to $277,000 of electronic health records incentive payments in the quarter ended June 30, 2011. Adjusted EBITDA (a non-GAAP measure of the liquidity of the company) at SunLink’s Healthcare Facilities Segment in the fourth fiscal quarter increased to $9,105,000, which included $7,508,000 of electronic health records incentive payments, from $612,000 which included $277,000 of electronic health records incentive payments, in the comparable quarter a year ago. Adjusted EBITDA for SunLink’s Specialty Pharmacy Segment was $730,000 in the fourth fiscal quarter compared to Adjusted EBITDA loss of $377,000 in the comparable quarter a year ago.
For the fiscal year ended June 30, 2012, SunLink reported earnings from continuing operations of $652,000, or $0.07 per fully diluted share, compared to a loss of $15,416,000, or a loss of $1.90 per fully diluted share, for the comparable period last year. For the fiscal year ended June 30, 2012, SunLink reported net earnings of $1,081,000, or $0.12 per fully diluted share, compared to a net loss of $16,103,000, or $1.99 per share, for the fiscal year ended June 30, 2011.
Consolidated net revenues from continuing operations for the fiscal year ended June 30, 2012 decreased by 5.0% to $146,674,000 compared to $154,380,000 in the comparable period a year ago. The Healthcare Facilities Segment had net revenues in the fiscal year ended June 30, 2012 of $108,575,000 compared to $114,460,000 for the comparable period a year ago. The Specialty Pharmacy Segment had $38,099,000 of net revenues for the year ended June 30, 2012 compared to $39,920,000 last year.
Operating profit from continuing operations for the fiscal year ended June 30, 2012 of $5,908,000 compared to an operating loss of $16,597,000 for the fiscal year ended June 30, 2011. Adjusted EBITDA for SunLink’s Healthcare Facilities Segment increased to $14,801,000 which included $9,134,000 of electronic health records incentive payments, in the fiscal year ended June 30, 2012, from $7,037,000 last fiscal year, which included $277,000 of electronic health records incentive payments. Adjusted EBITDA for the year ended June 30, 2012 for the Specialty Pharmacy Segment was $1,273,000 compared to $446,000 last fiscal year.
Commenting on the results, Robert M. Thornton, Jr., chairman and CEO, stated, “Our efforts this year have been focused on improving the position of our hospital facilities through cost controls, technology upgrades and additional specialized services, while improving our balance sheet with facility-specific re-financings and the sale of underperforming assets. While our efforts are a work-in-progress, we made significant strides this year that we believe will benefit our shareholders as we move forward.”
SunLink Health Systems, Inc. is the parent company of subsidiaries that operate hospitals and related businesses in the Southeast and Midwest, and a specialty pharmacy company in Louisiana. Each hospital is the only hospital in its community and is operated locally with a strategy of linking patients’ needs with dedicated physicians and healthcare professionals to deliver quality efficient medical care. For additional information on SunLink Health Systems, Inc., please visit the company’s website at www.sunlinkhealth.com.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the company’s business strategy. These forward-looking statements are subject to certain risks, uncertainties and other factors, which could cause actual results, performance and achievements to differ materially from those anticipated. Certain of those risks, uncertainties and other factors are disclosed in more detail in the company’s Annual Report on Form 10-K for the year ended June 30, 2012 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.
Adjusted earnings before income taxes, interest, depreciation and amortization
Earnings before income taxes, interest, depreciation and amortization (“EBITDA”) represent the sum of income before income taxes, interest, depreciation and amortization. We understand that certain industry analysts and investors generally consider EBITDA to be one measure of the liquidity of the company, and it is presented to assist analysts and investors in analyzing the ability of the company to generate cash, service debt and meet capital requirements. We believe increased EBITDA is an indicator of improved ability to service existing debt and to satisfy capital requirements. EBITDA, however, is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as a measure of operating performance or to cash liquidity. Because EBITDA is not a measure determined in accordance with accounting principles generally accepted in the United States of America and is thus susceptible to varying calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other corporations. Net cash provided by (used in) operations for the three and twelve months ended June 30, 2012 and 2011, respectively, is shown below. Healthcare Facilities Adjusted EBITDA and Specialty Pharmacy Adjusted EBITDA is the EBITDA for those facilities without any allocation of corporate overhead, impairment charges and gains on sale of businesses.
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
| Healthcare Facilties Adjusted EBITDA | $ | 9,105,000 | $ | 612,000 | $ | 14,801,000 | $ | 7,037,000 | ||||||||||||||||
| Specialty Pharmacy Adjusted EBITDA | 730,000 | (377,000 | ) | 1,273,000 | 446,000 | |||||||||||||||||||
| Corporate overhead costs | (1,225,000 | ) | (1,233,000 | ) | (4,558,000 | ) | (5,036,000 | ) | ||||||||||||||||
| Taxes and interest expense | (3,483,000 | ) | 5,079,000 | (5,165,000 | ) | 1,298,000 | ||||||||||||||||||
| Other non-cash expenses and net change in | ||||||||||||||||||||||||
| operating assets and liabilities | (1,389,000 | ) | 3,202,000 | (3,269,000 | ) | 1,034,000 | ||||||||||||||||||
| Net cash provided by operations | $ | 3,738,000 | $ | 7,283,000 | $ | 3,082,000 | $ | 4,779,000 | ||||||||||||||||
| SUNLINK HEALTH SYSTEMS, INC. ANNOUNCES | ||||||||||||||||||||||||||||||||||||||||||||||
| FISCAL 2012 FOURTH QUARTER AND ANNUAL | ||||||||||||||||||||||||||||||||||||||||||||||
| RESULTS | ||||||||||||||||||||||||||||||||||||||||||||||
| Amounts in 000’s, except per share and volume amounts | ||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||
| % of Net | % of Net | % of Net | % of Net | |||||||||||||||||||||||||||||||||||||||||||
| Amount | Revenues | Amount | Revenues | Amount | Revenues | Amount | Revenues | |||||||||||||||||||||||||||||||||||||||
| Net Revenues | $ | 34,635 | 100.0 | % | $ | 34,667 | 100.0 | % | $ | 146,674 | 100.0 | % | $ | 154,380 | 100.0 | % | ||||||||||||||||||||||||||||||
| Costs and Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||
| Cost of goods sold | 4,914 | 14.2 | % | 4,296 | 12.4 | % | 26,073 | 17.8 | % | 27,835 | 18.0 | % | ||||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 15,195 | 43.9 | % | 16,032 | 46.2 | % | 63,263 | 43.1 | % | 63,846 | 41.4 | % | ||||||||||||||||||||||||||||||||||
| Provision for bad debts | 3,443 | 9.9 | % | 4,788 | 13.8 | % | 14,024 | 9.6 | % | 16,841 | 10.9 | % | ||||||||||||||||||||||||||||||||||
| Supplies | 2,372 | 6.8 | % | 2,631 | 7.6 | % | 9,882 | 6.7 | % | 11,083 | 7.2 | % | ||||||||||||||||||||||||||||||||||
| Purchased services | 2,422 | 7.0 | % | 2,447 | 7.1 | % | 9,367 | 6.4 | % | 10,031 | 6.5 | % | ||||||||||||||||||||||||||||||||||
| Other operating expenses | 4,500 | 13.0 | % | 4,982 | 14.4 | % | 18,908 | 12.9 | % | 19,671 | 12.7 | % | ||||||||||||||||||||||||||||||||||
| Rents and leases | 687 | 2.0 | % | 766 | 2.2 | % | 2,775 | 1.9 | % | 2,903 | 1.9 | % | ||||||||||||||||||||||||||||||||||
| Impairments of goodwill and intangible assets | – | 0.0 | % | 13,347 | 38.5 | % | 931 | 0.6 | % | 13,347 | 8.6 | % | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,095 | 3.2 | % | 1,409 | 4.1 | % | 4,677 | 3.2 | % | 5,697 | 3.7 | % | ||||||||||||||||||||||||||||||||||
| Electronic Health Records incentives | (7,508 | ) | -21.7 | % | (277 | ) | -0.8 | % | (9,134 | ) | -6.2 | % | (277 | ) | -0.2 | % | ||||||||||||||||||||||||||||||
| Operating Profit (Loss) | 7,515 | 21.7 | % | (15,754 | ) | -45.4 | % | 5,908 | 4.0 | % | (16,597 | ) | -10.8 | % | ||||||||||||||||||||||||||||||||
| Interest Expense | (985 | ) | -2.8 | % | (1,749 | ) | -5.0 | % | (4,392 | ) | -3.0 | % | (7,433 | ) | -4.8 | % | ||||||||||||||||||||||||||||||
| Interest Income | 4 | 0.0 | % | 1 | 0.0 | % | 14 | 0.0 | % | 5 | 0.0 | % | ||||||||||||||||||||||||||||||||||
| Loss on disposal of assets | (34 | ) | -0.1 | % | – | 0.0 | % | (20 | ) | 0.0 | % | – | 0.0 | % | ||||||||||||||||||||||||||||||||
| Earnings (Loss) from Continuing Operations before | ||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | 6,500 | 18.8 | % | (17,502 | ) | -50.5 | % | 1,510 | 1.0 | % | (24,025 | ) | -15.6 | % | ||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 2,287 | 6.6 | % | (6,794 | ) | -19.6 | % | 858 | 0.6 | % | (8,609 | ) | -5.6 | % | ||||||||||||||||||||||||||||||||
| Earnings (Loss) from Continuing Operations | 4,213 | 12.2 | % | (10,708 | ) | -30.9 | % | 652 | 0.4 | % | (15,416 | ) | -10.0 | % | ||||||||||||||||||||||||||||||||
| Earnings (Loss) from Discontinued Operations, | ||||||||||||||||||||||||||||||||||||||||||||||
| net of income taxes | 901 | 2.6 | % | (547 | ) | -1.6 | % | 429 | 0.3 | % | (687 | ) | -0.4 | % | ||||||||||||||||||||||||||||||||
| Net Earnings (Loss) | $ | 5,114 | 14.8 | % | $ | (11,255 | ) | -32.5 | % | $ | 1,081 | 0.7 | % | $ | (16,103 | ) | -10.4 | % | ||||||||||||||||||||||||||||
| Earnings (Loss) Per Share from Continuing Operations: | ||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.45 | $ | (1.32 | ) | $ | 0.07 | $ | (1.90 | ) | ||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.45 | $ | (1.32 | ) | $ | 0.07 | $ | (1.90 | ) | ||||||||||||||||||||||||||||||||||||
| Earnings (Loss) Per Share from Discontinued Operations: | ||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.10 | $ | (0.07 | ) | $ | 0.05 | $ | (0.08 | ) | ||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.10 | $ | (0.07 | ) | $ | 0.05 | $ | (0.08 | ) | ||||||||||||||||||||||||||||||||||||
| Net Earnings (Loss) Per Share: | ||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.54 | $ | (1.39 | ) | $ | 0.12 | $ | (1.99 | ) | ||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.54 | $ | (1.39 | ) | $ | 0.12 | $ | (1.99 | ) | ||||||||||||||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 9,448 | 8,119 | 9,350 | 8,094 | ||||||||||||||||||||||||||||||||||||||||||
| Diluted | 9,448 | 8,119 | 9,350 | 8,094 | ||||||||||||||||||||||||||||||||||||||||||
| HEALTHCARE FACILITIES VOLUME STATISTICS | ||||||||||||||||||||||||||||||||||||||||||||||
| Admissions | 1,006 | 1,269 | 4,631 | 5,226 | ||||||||||||||||||||||||||||||||||||||||||
| Equivalent Admissions | 3,956 | 3,951 | 16,345 | 16,118 | ||||||||||||||||||||||||||||||||||||||||||
| Surgeries | 539 | 569 | 2,077 | 2,400 | ||||||||||||||||||||||||||||||||||||||||||
| Net revenue per equivalent admission | $ | 6,672 | $ | 7,013 | $ | 6,617 | $ | 7,092 | ||||||||||||||||||||||||||||||||||||||
| SUMMARY BALANCE SHEETS | June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 2,057 | $ | 7,250 | ||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable – net | 13,228 | 16,302 | ||||||||||||||||||||||||||||||||||||||||||||
| Other Current Assets | 15,333 | 19,813 | ||||||||||||||||||||||||||||||||||||||||||||
| Property Plant and Equipment, net | 30,908 | 33,684 | ||||||||||||||||||||||||||||||||||||||||||||
| Long-term Assets | 17,646 | 14,781 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 79,172 | $ | 91,830 | |||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||
| Current Liabilities | $ | 31,814 | $ | 31,332 | ||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt and Other Noncurrent Liabilities | 18,067 | 34,430 | ||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | 29,291 | 26,068 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 79,172 | $ | 91,830 | |||||||||||||||||||||||||||||||||||||||||||
Dehaier Medical (DHRM) Wins Three Year Procurement Agreement
Dehaier Medical Wins Three Year Procurement Agreement from Major Ukrainian Medical Equipment Manufacturer
BEIJING, Sept. 21, 2012 /PRNewswire-FirstCall/ — Dehaier Medical Systems Ltd. (NASDAQ: DHRM) (“Dehaier”), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has won a 3-year procurement agreement for Dehaier’s proprietary air compressors and customized trolleys from a major medical equipment manufacturer in Ukraine.
(Logo: http://photos.prnewswire.com/prnh/20100422/CNTH001LOGO)
During the three-year term of the agreement, the purchaser will procure Dehaier’s proprietary air compressors, customized trolleys and accessories, which will be used in hospital intensive care units, emergency rooms, operation rooms, respiratory departments and anesthesiology departments. The purchaser plans to distribute Dehaier products in Ukraine and other European markets through its sales network.
“Since early 2012, Dehaier has made considerable progress in exploring Europe market, mainly due to the grant of CE certification for our air compressor product,” noted Ms. Rayna Dong, Director of Dehaier’s International Marketing. “By actively partnering with distributors, exploring OEM opportunities and attending leading medical equipment exhibitions, we have begun to see the gradual increase of Dehaier’s brand recognition and awareness in Europe. Dehaier’s reputation as a reliable vendor that produces a full line of high quality medical equipment products at reasonable prices enables us to deliver comprehensive, customized solutions to our customers who have to satisfy diverse consumer demands for health care.”
About Dehaier Medical Systems Ltd.
Dehaier is an emerging leader in the development, assembly, marketing and sale of medical products, including respiratory and oxygen homecare medical products. The company develops and assembles its own branded medical devices and homecare medical products from third-party components. The company also distributes products designed and manufactured by other companies, including medical devices from IMD (Italy), Welch Allyn (USA), HEYER (Germany), Timesco (UK), eVent Medical (US) and JMS (Japan). Dehaier’s technology is based on six patents, nine software copyrights and proprietary technology. More information may be found at http://www.dehaier.com.cn
Forward-looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, government approvals or performance, and underlying assumptions and other statements that are other than statements of historical facts, including in particular any implications regarding the procurement agreement from Ukrainian manufacturer. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, future developments in payment for and demand for medical equipment and services, implementation of and performance under the joint venture agreement by all parties, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Contact Us
Dehaier Medical Systems Limited
Surie Liu
+86 10-5166-0080
lius@dehaier.com.cn
Dehaier Medical Systems Limited
Tina He
+86 10-5166-0080
hexw@dehaier.com.cn
Aeterna (AEZS) to Present Poster on Oral Prostate Cancer Vaccine Candidate, AEZS-120
QUEBEC CITY, Sept. 20, 2012 /CNW Telbec/ – Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) (the “Company”) today announced that a poster on its oral prostate cancer vaccine candidate, AEZS-120, will be on display at the upcoming 32nd Congress of the Société Internationale d’Urologie which will be held September 30 through October 4, 2012 at the Fukuoka International Congress Center in Fukuoka, Japan.
The abstract #839 titled, “Pre-Clinical Proof of Concept and Characterization of AEZS-120, a Therapeutic Oral Prostate Cancer Vaccine Candidate Based on Live Recombinant Attenuated Salmonella“, J. Fensterle, B. Bergmann, M. Teifel, J. Engel, T. Rudel, W. Goebel, U. Rapp, underlines the feasibility of an oral therapeutic vaccination approach against prostate cancer. The safety pharmacology and toxicology experiments suggest that the profile of AEZS-120 is similar to the approved carrier strain and, therefore, pave the way for Phase 1 clinical testing.
About AEZS-120
AEZS-120 is a live recombinant oral tumor vaccine candidate based on Salmonella typhi Ty21a as a carrier strain. Salmonella typhi Ty21a is an approved oral typhoid vaccine which has been safely applied in more than 350 million doses. The principle of AEZS-120 is based on the recombinant expression of prostate specific antigen fused to the B subunit of cholera toxin and a secretion signal in the presence of the Escherichia coli type I hemolysin secretion system. The proprietary system allows the secretion of the antigen together with an immunological adjuvant which has been demonstrated to be required for optimal induction of CD8 T-cell responses by recombinant Salmonella based bacterial vaccines. The proof-of-concept was already demonstrated for the mouse homologue of AEZS-120 in a mouse tumor-challenge model.
In general, by varying the antigen and/or the carrier, this proprietary platform technology is suitable for virtually any therapeutic or prophylactic vaccine indication with a relatively favorable cost of goods expectation in large scale.
About Aeterna Zentaris
Aeterna Zentaris is an oncology and endocrinology drug development company currently investigating treatments for various unmet medical needs. The Company’s pipeline encompasses compounds at all stages of development, from drug discovery through to marketed products. For more information please visit www.aezsinc.com.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbour provisions of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that could cause the Company’s actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, among others, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the risk that safety and efficacy data from any of our Phase 3 trials may not coincide with the data analyses from previously reported Phase 1 and/or Phase 2 clinical trials, the ability of the Company to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. Investors should consult the Company’s quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties relating to forward-looking statements. Investors are cautioned not to rely on these forward-looking statements. The Company does not undertake to update these forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, unless required to do so by a governmental authority or by applicable law.
SOURCE: AETERNA ZENTARIS INC.
Investor Relations
Ginette Beaudet Vallières
Investor Relations Coordinator
(418) 652-8525 ext. 265
gvallieres@aezsinc.com
Media Relations
Paul Burroughs
Director of Communications
(418) 652-8525 ext. 406
pburroughs@aezsinc.com
Fortune Industries, Inc. (FFI) Announces Restructured Merger Agreement
INDIANAPOLIS, Sept. 20, 2012 /PRNewswire/ — Fortune Industries, Inc. (NYSE MKT:FFI) (the “Company”) announced today that it has reached an agreement in principal to restructure its current merger agreement by planning to enter into an amended merger agreement with Ide Management Group, LLC (“Ide”), a skilled nursing facility management group headquartered in Greenfield, Indiana (the “Amended Agreement”). The Amended Agreement is subject to final documentation, completion of due diligence, regulatory compliance and other normal contingencies. Once completed, a revised Proxy Statement and the Amended Agreement will be filed with the SEC for review. Further, the Amended Agreement will result in the Company remaining registered with the Securities and Exchange Commission, and it is anticipated that it will continue to be publicly traded. Current shareholders of the Company will continue to own their Company shares.
“This Amended Agreement provides current Company shareholders the opportunity to continue to own shares in a publicly-traded entity, which we believe should enhance their liquidity,” stated Tena Mayberry, Chief Executive Officer of the Company.
In connection with the Amended Agreement, the Company will exchange all of its professional employer organization (“PEO”) subsidiaries for all of the common and preferred shares owned by the late Carter M. Fortune and by CEP, Inc., a Tennessee corporation which had previously entered into a merger agreement with the Company to acquire all the Company’s PEO operations. As a result of the revised transaction structure, the Company will cease being in the PEO business and through its newly acquired Ide subsidiaries, will operate a chain of 20 skilled nursing facilities located in Indiana, Illinois, Iowa and Wisconsin.
The Amended Agreement provides that Ide will merge with a to-be formed subsidiary of the Company, and become a wholly-owned subsidiary of the Company. Mark Ide, the sole member of Ide, will receive sufficient shares of the Company in exchange for all full ownership of Ide. As a result, Mr. Ide will own a substantial majority of the Company shares. In addition, Ide will pay the Company three hundred thousand dollars ($300,000) as part of the transaction, which has been deposited into an escrow account with an independent third-party bank.
The terms and conditions of the escrow agreement and the revised merger transaction are more fully described in the Company’s Form 8-K filed today. The Amended Agreement will be put to a vote of all the Company’s shareholders after all regulatory conditions are satisfied, including any comments from the Securities and Exchange Commission. The late Mr. Fortune previously entered into a voting agreement in which will vote his majority stake of the Company in favor of the transaction.
About Fortune Industries, Inc.
Fortune Industries, Inc., is a professional employer organization (PEO) focused on small and medium-sized business clients in 47 states, providing human resource consulting and management, employee assessment, training, payroll services, and benefits administration. The company has three divisions operating as licensed PEOs: Century II, Inc., located in Brentwood, TN; Employer Solutions Group, Inc., located in Loveland, CO, Provo, UT, Phoenix and Tucson, AZ; and Professional Staff Management, Inc., located in Indianapolis, and Richmond, IN. The company’s PEO divisions are among the nation’s oldest PEOs, and are recognized market leaders providing the full array of outsourced human resource services through co-employment relationships with companies that typically do not have an internal personnel or human resources department. Fortune Industries represents clients with a combined 13,600 worksite employees representing a broad base of industries including healthcare, IT, financial, and other professional services, as well as manufacturing, construction, and telemarketing. For more information, visit www.ffi.net.
About Ide Management Group, LLC.
Ide Management Group (IMG) owns and manages skilled nursing and assisted living facilities. IMG was founded by Mark Ide in 1997 and acquired its first skilled nursing facility in Indiana in 2001. Through a strategy of growth by acquisition, IMG now owns or manages 20 facilities throughout Indiana, Illinois, Iowa and Wisconsin, and continues to pursue acquisition opportunities that fit the company’s facility profile and provide immediate returns on investment. Headquartered in the greater Indianapolis, Indiana area, IMG currently employs over 2,200 people. For more information, visit the IMG website at www.imgcares.com.
Forward Looking Statements
This press release and other statements by Fortune Industries, Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “estimate,” “potential,” or future/conditional verbs such as “will,” “should,” and “could” or the negative of those terms or other variations of them or by comparable terminology. The absence of such terms, however, does not mean that the statement is not forward-looking. Any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences, include, but are not limited to, the risks and uncertainties that are discussed under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” within the Company’s Form 10-K for the year ended June 30, 2011. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. Readers should carefully review the risk factors disclosed within the Company’s Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.
SOURCE Fortune Industries, Inc.
Cardium (CXM) Announces Medical Advisory Board
SAN DIEGO, Sept. 20, 2012 /PRNewswire/ — Cardium Therapeutics (NYSE MKT: CXM) today announced the formation of the new Excellagen Medical Advisory Board, comprising leading practitioners, clinicians and researchers with diversified expertise in the field of advanced wound care. The Medical Advisory Board will provide strategic feedback and guidance to the Company on its ongoing commercialization activities, post-marketing research, reimbursement strategies and educational opportunities for Cardium’s new Excellagen advanced wound care product platform.
(Logo: http://photos.prnewswire.com/prnh/20051018/CARDIUMLOGO)
Since receiving FDA clearance for Excellagen, Cardium has established cGMP out-sourced manufacturing and supply with UK-based Angel Biotechnology, developed cold chain logistics and distribution with Smith Medial Partners, initiated a pathway toward securing private payer and government product reimbursement, including Centers for Medicare & Medicaid Services (CMS), and assembled an internal strategic and tactical sales and marketing team. The Company is currently engaged in physician relationship building, product sampling, practice integration and building a portfolio of physician case studies. As a result of Excellagen’s FDA clearance labeling, it can now be marketed and sold for the treatment of a broad array of wounds including diabetic foot ulcers, pressure ulcers, venous ulcers, surgical, and other dermal wounds. In the U.S., the Company is initially focused on four vertical wound healing market channels: (1) podiatry, (2) wound care centers, hospitals, and long-term care facilities, (3) government agency providers (such as the U.S. Department of Veterans Affairs and Bureau of Indian Affairs), and (4) dermatology. Consistent with Cardium’s business strategy, the Company is currently working with U.S. and international strategic players to establish representation, marketing and sales, or co-promotional arrangements, leading toward an expanded physician base, revenues, and monetization opportunities.
“We are pleased to have assembled such an impressive group of key opinion leaders and industry experts in the field of our initial target diabetic wound care market. The Medical Advisory Board’s collective expertise, insights and practical clinical experience will be instrumental as we advance our commercialization efforts to better target the needs of wound care practitioners and patients who could benefit from our Excellagen wound care product,” stated Christopher J. Reinhard, Cardium’s Chairman and CEO.
Excellagen Medical Advisory Board Members
Rudolph C. Anderson, Jr., DPM, FAPWCA: Virginia Medical Alliance, Springfield, VA; Active Staff at Sentara Potomac Hospital, Virginia Hospital Center and INOVA Springfield Ambulatory Surgical Center
Jay S. Berenter, DPM, FACFAS: Podiatrist and Chief, Podiatric Division Department of Orthopedics, Scripps Memorial Hospital, La Jolla, CA
James Blaine, DPM: President and CEO of Limb Savers Podiatric Wound Care Center, Columbus, OH
Anthony Cannizzaro, DPM, MPH, FAPWCA: Senior Clinical Consultant, Kaiser Permanente, Los Angeles, CA; CPMA Society President, Southern California Kaiser Permanente Podiatry Society; and Clinical Associate Professor of Podiatric Medicine and Surgery, Western University of Health Sciences, Pomona, CA
John D. Halebian, DPM: Doctor of Podiatric Medicine, Henry Mayo Hospital, Valencia, CA; and Attending Staff Wound Care and Attending Physician, Henry Mayo Hospital
Howard M. Kimmel, DPM: Louis Stokes Veterans Affiars Medical Center, Cleveland OH; Senior Clinical Instructor, Department of Surgery, Case Western Reserve University School of Medicine; Core Clinical Faculty, Ohio College of Osteopathic Medicine; Faculty Member, St. Vincent’s Charity Residency Program; Chief of Podiatric Medicine and Surgery, Free Clinic of Cleveland; and Adjunct Clinical Professor of Surgery, Ohio College of Podiatric Medicine
Lawrence A. Lavery, DPM, MPH, BS: Professor Department of Plastic Surgery, University of Texas Southwestern Medical Center, Dallas, TX and Vice Chair of Medical Affairs, Chronic Disease Specialists
Eric J. Lullove, DPM, PA: Podiatric Medicine and Surgery Board Certified Wound Specialist, Boca Raton, FL; Speaker Bureau Member/Consultant for Cordis Corporation/Johnson & Johnson; and Active Surgical Staff Committee Member, West Boca Medical Center
William D. McDonald, DPM: Doctor of Podiatric Medicine, Pacific Wound Center, Stockton, CA
Jeffrey A. Ross, DPM, MD, FACFAS: Podiatric Medicine and Surgery, Houston, TX; Clinical Instructor Externship Program at Ohio College of Podiatric Medicine, Iowa College of Podiatric Medicine and Barry University College of Podiatric Sports Medicine
Arthur J. Tallis, DPM: President and Medical Director, Associated Foot & Ankle Specialists, Phoenix, AZ; Physician Peer Review, Health Care Finance Commission; Physician Peer Review Panels of the Health Service Advisory Group and Mediq Review Services; and Sub-Investigator, Phoenix Center for Clinical Research
David A. Yeager, DPM, FASPS, FACFAS: Podiatrist at KSB Foot and Ankle Center/Wound Care Center, Dixon, IL; Director of Podiatric Medical Education and Adjunct Professor, St. Joseph’s Hospital Podiatric Surgical Residency; and Clinical Assistant Professor, Department of Family and Community Medicine, University of Illinois College of Medicine at Rockford
Stephanie C. S. Wu, DPM: Associate Dean of Research and Associate Professor, Department of Stem Cell and Regenerative Medicine, Dr. William M. Scholl College of Podiatric Medicine at Rosalind Franklin University of Medicine and Science, Chicago, IL; and Director of Educational Affairs and Outreach, Center for Lower Extremity Ambulatory Research (CLEAR)
About Excellagen
Excellagen is an FDA-cleared formulated collagen topical gel (2.6%) designed for use with debridement and engineered to support a favorable wound healing environment and platelet activation for non-healing lower extremity diabetic ulcers and other dermal wounds. Excellagen’s unique high-molecular weight structured collagen formulation is topically applied through easy-to-control, pre-filled, sterile, single-use syringes and its viscosity-optimized gel formulation is designed for application at only one or two week intervals. Excellagen is intended for professional use following standard debridement procedures in the presence of blood cells and platelets, which are involved with the release of endogenous growth factors.
Cardium’s market research indicates that physicians seek easy-to-use products to reduce preparation time and facilitate product application – and Excellagen’s unique, ready-to-use syringe-based collagen gel requires no thawing or mixing. Because of its specialized formulation, only a thin layer needs to be applied over the wound area, and one syringe containing 0.5 cc of Excellagen covers wounds up to 5cm2 in size using the supplied 24-gauge sterile, single-use flexible applicator tip. To learn more about Excellagen and for product ordering information, please visit http://www.excellagen.com and view the information video, “Excellagen: A New Wound Care Pathway for Diabetic Foot Ulcers”, at http://www.excellagen.com/excellagen-video.html.
About Cardium
Cardium is an asset-based health sciences and regenerative medicine company focused on the acquisition and strategic development of innovative products and businesses with the potential to address significant unmet medical needs and having definable pathways to commercialization, partnering or other economic monetizations. Cardium’s current portfolio includes the Tissue Repair Company, Cardium Biologics, and the Company’s in-house MedPodium Health Sciences healthy lifestyle product platform. The Company’s lead commercial product Excellagen® topical gel for wound care management, recently received FDA clearance for marketing and sale in the United States. Cardium’s lead clinical development product candidate Generx® is a DNA-based angiogenic biologic intended for the treatment of patients with myocardial ischemia due to coronary artery disease. In addition, consistent with its capital-efficient business model, Cardium continues to actively evaluate new technologies and business opportunities. In July 2009, Cardium completed the sale of its InnerCool Therapies medical device business to Royal Philips Electronics, the first asset monetization from the Company’s biomedical investment portfolio. News from Cardium is located at www.cardiumthx.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release or the referenced investor presentation are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from expectations. For example, there can be no assurance that we can successfully build key physician relationships or effectively market Excellagen in any of the potential wound healing market channels, that our Medical Advisory Board will effectively assist such efforts, or that we will successfully secure government, CMS or private payer reimbursement; that the company can attract suitable commercialization partners for its products or that we or partners can successfully commercialize them; that our product or product candidates will not be unfavorably compared to competitive products that may be regarded as safer, more effective, easier to use or less expensive or blocked by third party proprietary rights or other means; that the products and product candidates referred to in this report or in our other reports will be successfully commercialized or will enhance our market value; that third parties on whom we depend will perform as anticipated; that results or trends observed in one clinical study or procedure will be reproduced in subsequent studies or in actual use; that new clinical studies will be successful or will lead to approvals or clearances from health regulatory authorities, or that approvals in one jurisdiction will help to support studies or approvals elsewhere; that new product opportunities or commercialization efforts will be successfully established; that we can raise sufficient capital from partnering, monetization or other fundraising transactions to maintain our stock exchange listing or adequately fund ongoing operations; or that we will not be adversely affected by these or other risks and uncertainties that could impact our operations, business or other matters, as described in more detail in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.
Copyright 2012 Cardium Therapeutics, Inc. All rights reserved.
For Terms of Use Privacy Policy, please visit www.cardiumthx.com.
Cardium Therapeutics®, Generx®,Cardionovo™, Tissue Repair™, Gene Activated Matrix™, GAM™, Excellagen®, Excellarate™, Osteorate™, MedPodium®, Appexium®, Linee®, Alena®, Cerex®, D-Sorb™, Neo-Energy®, Neo-Carb Bloc®, Neo-Chill™, and Nutra-Apps® are trademarks of Cardium Therapeutics, Inc. or Tissue Repair Company.
SOURCE Cardium Therapeutics
MissionIR Features GlobalWise (GWIV) in Exclusive Interview Featuring CEO William Santiago
ATLANTA, GA — (Marketwire) — 09/20/12 — MissionIR today announces that its interview with William J. “BJ” Santiago, the Chief Executive Officer of GlobalWise Investments, Inc. (OTCBB: GWIV), is now available online. The interview can be heard at http://gwiv.missionir.com/gwiv/interview.html.
Mr. Santiago provided a brief overview of his background, the rapidly growing ECM industry, competitive advantages of GlobalWise’s Intellivue™ software, and current expansion initiatives. He also discussed the company’s advanced security technologies, multi-language support, and ability to seamlessly integrate its ECM solutions with outside software and hardware.
“We have seen great results in our strategy to migrate more and more sales through our global channel sales force rather than through direct sales, and the company is now seeing the financial results,” Mr. Santiago stated. “In Q1 2012 we saw year-over-year revenue growth of 51%, and in Q2 we saw 146% sequential revenue growth. We’re super excited to see what happens throughout the rest of the year and anticipate great things to happen.”
About GlobalWise Investments, Inc.
GlobalWise Investments, Inc., via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company’s flagship platform, Intellivue™, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.
For more information, visit www.GlobalWiseInvestments.com
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
To sign up for The MissionIR Report, please visit http://www.MissionIR.com
To connect with MissionIR via Facebook, please visit http://www.Facebook.com/MissionIR
To connect with MissionIR via Twitter, please visit http://www.Twitter.com/MissionIR
Please read FULL disclaimer on the MissionIR website: http://Disclaimer.MissionIR.com
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company’s actual results to differ materially from those indicated in any forward-looking statements.
Contact:
GlobalWise Investments, Inc.
Columbus, Ohio
www.GlobalWiseInvestments.com
614-388-8909
Contact@GlobalWiseInvestments.com
Mission Investor Relations
Atlanta, Georgia
www.MissionIR.com
404-941-8975
New Groupon (GRPN) Payments™ Service Offers Local Businesses Low Credit Card Rates
Today Groupon (NASDAQ: GRPN) announced the launch of Groupon Payments™, a payments service backed by a guarantee to be the lowest cost option for the company’s merchants to accept credit cards. Built into the latest version of the Groupon Merchants app for the iPhone and iPod Touch, Groupon Payments provides restaurants, salons and spas, retail establishments and other local businesses with the ability to accept all credit card payments at a lower rate than other providers.
Groupon launches Groupon Payments(TM), a payments service backed by a guarantee to be the lowest cost option for the company’s merchants to accept credit cards. (Photo: Business Wire)
After a successful pilot in the San Francisco Bay Area, any merchant that runs a deal with Groupon in the United States can now accept payments at the lowest rates in today’s marketplace:
- Swiped transactions – MasterCard, Visa and Discover (1.8% plus $0.15 per transaction) and American Express (3% plus $0.15 per transaction)
- No hidden costs or monthly fees
Merchants will also have their credit card deposits in their bank accounts overnight, which is much faster than the typical experience of waiting two to three business days offered by most credit card processors.
“Our goal is to provide merchants with the most affordable and powerful tools to run and grow their businesses,” said Mihir Shah, VP Mobile and Merchant Products at Groupon. “With groundbreaking pricing and service, Groupon Payments does just that.”
Groupon merchants that sign up for the service will enjoy a fast, intuitive experience that is capable of tackling their everyday credit card processing needs. Some of the Groupon Payments characteristics include:
- Service — Backed by a 7-days-a-week Groupon Payments support team reachable by phone and email
- Hassle-Free — Enroll within minutes
- Fully-Featured — Use Groupon Merchants app to enter bill totals, add tips, apply taxes, process refunds and email customer receipts
- Sturdy — Swipe credit cards via a sturdy, case-based credit card reader suitable for high transaction volume merchants or an audio jack accessory
- Secure — Encrypted and secure credit card information
- Analytics — View payments information seamlessly to an online Payments Center where merchants can view a live transaction history, check daily sales reports, track deposits to their account and analyze revenue trends
In addition, merchants can use the app to scan and redeem Groupons and monitor additional spend over the value of the Groupon.
“While the cost savings are obvious, we were really impressed by the level of support provided by Groupon and the speed in which we received our payments,” said Nadia McClinton, owner of Body By X in Corte Madera, Calif. “From day one we discovered we could rely on Groupon Payments to effectively, quickly and easily process transactions and deliver a better customer and employee experience. It truly saves us time, money and effort that we can invest in other aspects of our operations.”
While Groupon Payments is designed for local businesses that run deals with Groupon, the service is also available as a pilot to non-Groupon merchants at the low rate of 2.2% (3% American Express) + $0.15 per transaction.
Groupon Payments and the payments-enabled Groupon Merchants app are the latest additions to Groupon’s extensive suite of products and services that merchants can use to save money, streamline operations and grow their businesses. These include: Groupon Daily Deals; Groupon Now! real-time location-based offers; Groupon Rewards an easy-to-use loyalty program and Groupon Scheduler an online scheduling application for appointment-based businesses.
Local businesses interested in learning more about Groupon Payments can visit www.GrouponWorks.com/Payments. The Groupon Merchants app can be downloaded for free from the iTunes App Store.
The guarantee of lowest possible rates is only available to Groupon merchants located in the United States. Merchants must provide proof of current third-party rates for identical services. Participation is subject to the terms of the Groupon Payments Merchant User Agreement which may modify or discontinue the guarantee and the underlying services at any time. The guarantee is void where prohibited by law.
About Groupon
Groupon (NASDAQ: GRPN) launched in November 2008 in Chicago, features a daily deal on the best stuff to do, eat, see and buy in 48 countries around the world. Groupon uses collective buying power to offer huge discounts and provide a win-win for businesses and consumers, delivering more than 1,000 daily deals globally. To subscribe for the best deals in your city, visit (http://www.groupon.com). To learn how to become a featured business, visit (http://www.grouponworks.com).
Forward-Looking Statements
This announcement contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended December 31, 2011 and subsequently filed quarterly reports filed with the Securities and Exchange Commission, copies of which may be obtained by visiting the company’s Investor Relations web site at http://investor.groupon.com or the SEC’s web site at (www.sec.gov). You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in our expectations.
“Groupon” is a registered trademark of Groupon, Inc. All other names used may be trademarks of their respective holders.
Loncor (LON) Announces Financings
TORONTO, ONTARIO — (Marketwire) — 09/19/12 — Loncor Resources Inc. (the “Company” or “Loncor”) (TSX VENTURE:LN)(NYSE MKT:LON)(NYSE Amex:LON) announces that it has filed a preliminary short form prospectus in connection with a marketed offering of common shares of the Company (the “Offering”). The Offering will be conducted through a syndicate of investment dealers (the “Underwriters”). The price of each common share to be issued under the Offering will be determined in the context of the market.
Loncor will grant the Underwriters an over-allotment option to purchase a number of additional common shares of the Company equal to up to 7.5% of the aggregate number of common shares sold in the Offering to cover over-allotments and for market stabilization purposes, exercisable at any time up to 30 days after the closing of the Offering.
The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus will be available electronically at www.sedar.com. There will not be any sale of or any acceptance of an offer to buy the securities until a receipt for the (final) prospectus has been issued.
Newmont Mining Corporation (“Newmont”) has expressed an interest in completing a non-brokered private placement of common shares of the Company at the Offering price, concurrent with and subject to completion of the Offering. The terms of this private placement are expected to be finalized once the terms of the Offering have been finalized. Newmont (through an affiliate) currently holds 9,700,000 (representing 16.35%) of the outstanding common shares of the Company and 1,000,000 common share purchase warrants of the Company, with each such warrant entitling the holder to purchase one common share of the Company at a price of Cdn$2.30 until December 2012. The Company expects that Newmont’s equity interest in the Company would increase to 19.99% on a fully-diluted basis upon completion of this private placement (and giving effect to the completion of the Offering).
The Company is targeting to raise total gross proceeds of approximately Cdn$12 million pursuant to the two financings.
Loncor intends to use the proceeds from the financings for the exploration and development of the Company’s mineral properties in the Democratic Republic of the Congo and for working capital and general corporate purposes.
Closing of the financings is subject to, among other things, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and the NYSE MKT LLC.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Loncor is a Canadian gold exploration company focused on two key projects in the Democratic Republic of the Congo (the “DRC”) – the Ngayu and North Kivu projects. The Company has exclusive gold rights to an area covering 2,087 sq km covering part of the Ngayu Archaean greenstone belt in Orientale province in the northeast portion of the DRC. Loncor also owns or controls 55 exploration permits in North Kivu province, covering 17,760 square kilometres, located west of the city of Butembo. Both areas have historic gold production. Led by a team of senior exploration professionals with extensive African experience, Loncor’s strategy includes an aggressive drilling program to follow up on initial known targets as well as covering the entire greenstone belt with regional geochemical and geophysical surveys. Additional information with respect to the Company’s projects can be found on the Company’s web site at www.loncor.com.
Forward-Looking Information: Statements in this press release relating to the proposed financings and the Company’s exploration and development plans are forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to enter into definitive documentation in respect of, or complete, one or both of the proposed financings, the need to satisfy regulatory and legal requirements with respect to both financings, risks related to the exploration stage of the Company’s properties, market fluctuations in prices for securities of exploration stage companies, the location of the Company’s properties in the DRC, uncertainties relating to the availability and costs of financing needed in the future, the possibility that future exploration or development results will not be consistent with the Company’s expectations, failure to establish estimated mineral resources (the Company’s mineral resource figures are estimates and no assurance can be given that the indicated levels of gold will be produced), uncertainties related to fluctuations in commodity prices and equity markets and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual report on Form 20-F dated March 30, 2012 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Loncor Resources Inc.
Peter N. Cowley
President and Chief Executive Officer
+ 44 (0) 790 454 0856
Loncor Resources Inc.
Arnold T. Kondrat
Executive Vice President
+ 44 (0) 790 454 0856
Loncor Resources Inc.
Naomi Nemeth
Investor Relations
Prana’s (PRAN) PBT2 Clinical Trials Cited as Most Advanced in Neurodegeneration
Prana’s PBT2 Clinical Trials Cited as Most Advanced in Addressing Neurodegeneration From the Metal Equilibrium Perspective
MELBOURNE, AUSTRALIA — (Marketwire) — 09/19/12 — Prana Biotechnology (NASDAQ: PRAN) (ASX: PBT) today reported that it had been cited in an interview in The Life Sciences Report with George Zavoico, Ph.D., senior equity analyst and managing director with MLV & Co., as the only drug company to address in clinical trials the control of transition metal levels in neuronal synapses, a key event in age-related dysfunction of the brain. The Report citing Prana is titled, “Seven Innovative Biotechs That Could Soar By Year-End”.*
In the published interview, Dr. Zavoico spoke about an emerging hypothesis addressing the formation of beta amyloid plaques, and how another neuronal protein, tau, is hyperphosphorylated, enabling it to form neurofibrillary tangles. These are recognized by experts in the field as key events in age-related brain dysfunction and cognitive loss. The basis for what has been called the “Metals Dyshomeostasis Hypothesis” is the abnormal distribution and loss in the control of transition metal levels in neuronal synapses. Dr. Zavoico said, “Metals like zinc, copper and iron have a number of important biologic functions, most notably in the function of numerous enzymes and receptors. Zinc, in particular, binds to beta amyloid, leading to its aggregation and, ultimately, plaque formation”.
Moreover, studies have shown that abnormal distribution of transition metals driven partly by beta amyloid plaque formation affects the function of tau, an intracellular protein essential for normal neuronal function. Tau becomes hyperphosphorylated and forms neurofibrillary tangles, which is thought to cause neuronal cell death.
Prana is evaluating the potential clinical benefit of PBT2 in two Phase II trials in two different neurodegenerative diseases. In Alzheimer’s disease, the IMAGINE trial, a double blind placebo controlled trial enrolling 40 patients with prodromal or mild Alzheimer’s disease, being treated for 12 months will test cognition and use brain imaging to measure the effects of PBT2 on beta-amyloid deposits in the brain and effects on increasing brain activity.
In the interview, Dr. Zavoico added: “In preclinical studies, Prana’s lead drug candidate, PBT2, has been shown to redistribute zinc and other transition metals, preventing beta amyloid aggregation and even inducing its disaggregation. Sequestration of zinc in beta amyloid plaques reduces zinc levels inside the neuron, which can lead to its [tau protein’s] hyperphosphorylation. The metals hypothesis appears to unify the pathology underlying both amyloid plaque and neurofibrillary tangle formation, which makes this approach so compelling, in my mind”.
Notably, Huntington’s disease is also characterized by misfolding and aggregation of proteins, but of Huntingtin protein, not beta amyloid. Like Alzheimer’s, studies indicate that the pathology underlying Huntington’s disease is also due to abnormal distribution of certain transition metals. The Reach2HD trial, enrolling 100 patients with early to mid-stage Huntington’s disease, being treated for 6 months, aims to demonstrate safety, motor and behavioural benefits and the same cognitive benefits for Huntington’s patients that it has already demonstrated in Alzheimer’s patients treated with PBT2. Results of Prana’s clinical trials are expected in the second half of next year.
Prana’s CEO, Geoffrey Kempler, commented that “it is very encouraging that the strength of our science and the clinical potential of PBT2 is being recognized by industry experts and analysts, particularly at a time when so many competing drug candidates to treat Alzheimer’s have failed to meet their clinical endpoints. As some researchers are losing hope that Alzheimer’s can even be treated, we remain very confident in the potential of PBT2 to help patients”.
*The Life Sciences Report, A Streetwise Report, September 13, 2012.
About Prana Biotechnology Limited
Prana Biotechnology was established to commercialize research into age-related neurodegenerative disorders. The Company was incorporated in 1997 and listed on the Australian Securities Exchange in March 2000 and listed on NASDAQ in September 2002. Researchers at prominent international institutions including The University of Melbourne, The Mental Health Research Institute (Melbourne) and Massachusetts General Hospital, a teaching hospital of Harvard Medical School, contributed to the discovery of Prana’s technology.
For further information please visit the Company’s web site at www.pranabio.com.
Forward Looking Statements
This press release contains “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. The Company has tried to identify such forward-looking statements by use of such words as “expects,” “intends,” “hopes,” “anticipates,” “believes,” “could,” “may,” “evidences” and “estimates,” and other similar expressions, but these words are not the exclusive means of identifying such statements. Such statements include, but are not limited to any statements relating to the Company’s drug development program, including, but not limited to the initiation, progress and outcomes of clinical trials of the Company’s drug development program, including, but not limited to, PBT2, and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to the difficulties or delays in financing, development, testing, regulatory approval, production and marketing of the Company’s drug components, including, but not limited to, PBT2, the ability of the Company to procure additional future sources of financing, unexpected adverse side effects or inadequate therapeutic efficacy of the Company’s drug compounds, including, but not limited to, PBT2, that could slow or prevent products coming to market, the uncertainty of patent protection for the Company’s intellectual property or trade secrets, including, but not limited to, the intellectual property relating to PBT2, and other risks detailed from time to time in the filings the Company makes with Securities and Exchange Commission including its annual reports on Form 20-F and its reports on Form 6-K. Such statements are based on management’s current expectations, but actual results may differ materially due to various factions including those risks and uncertainties mentioned or referred to in this press release. Accordingly, you should not rely on those forward-looking statements as a prediction of actual future results.
Contacts:
Australia
Prana Biotechnology
+61 3 9349 4906
US
Leslie Wolf-Creutzfeldt
T: 646-284-9472
E: leslie.wolf-creutzfeldt@grayling.com
US – Media
Ivette Almeida
T: 646-284-9455
GlobalWise (GWIV) Channel Partner Sycle.net Delivers 148 New Installations
COLUMBUS, OH — (Marketwire) — 09/19/12 — GlobalWise Investments, Inc. (OTCBB: GWIV) (OTCQB: GWIV) (www.GlobalWiseInvestments.com) and its wholly owned subsidiary Intellinetics, Inc. (“Intellinetics”), a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management (“ECM”) systems in both the public and private sectors, today provide an update on the deployment of the co-developed eDocs platform with Sycle.net in audiology clinics.
Sycle.net is the hearing care industry’s number one provider for Enterprise Resource Planning (ERP) cloud-based software solutions. After an extensive due diligence process, Sycle.net chose Intellinetics as their ECM software partner. Together, both companies co-developed the private branded eDocs, a paperless office solution fully integrated within Sycle.net software, providing Sycle.net users the ability to easily organize important patient files within the easy-to-use Sycle.net interface.
Since the introduction of eDocs initially as a beta test with sixty users, Sycle.net and, as a result, GlobalWise, have on-boarded 148 new subscribers in the first 30 days of the official launch. There has been tremendous feedback from both new clients, as well as the sales force of Sycle.net, including how seamlessly the Intellivue™ software is integrated into the Sycle.net ERP audiology clinic software and how easy it is for clients to scan, sort and search for patient documents, especially within multiple offices where paper was previously stored on-site in filing cabinets.
“The addition of the Intellivue™ ECM software package to the rich Sycle.net ERP platform has been a tremendous success and one of the most successful ‘add-on’ releases in our history,” stated Ridge Sampson, President and CEO of Sycle.net. “There has been especially strong interest from multi-location clinics who in the past had difficulty sharing documents between locations. With the highly secure nature of the eDocs software, clients can access documents anywhere they have access to the internet, over a laptop, iPhone or iPad, making everyone more efficient at meeting patient needs.”
“I am extremely encouraged by the success of the integration and roll-out of the eDocs cloud-based offering with Sycle.net,” stated William J. “BJ” Santiago, CEO of GlobalWise. “Sycle.net dominates the audiology industry and services approximately 65% of the clinics nationwide, with over 5,800 audiology clinics and 18,000 users in place nationwide. The addition of Intellivue™ provides Sycle.net with a value-added/cloud-based service to sell to their clients in an easy and efficient manner. eDocs is a strong example of our Capture, Grow, and Harvest strategy in the market to drive rapid growth in our cloud subscriber user base.”
“The next phase for eDocs is potentially limitless,” continued Mr. Sampson. “Sycle.net is actively exploring deployment of eDocs in European markets through the joint globalization efforts of our software. This next year should be very exciting for both Sycle.net and GlobalWise.”
About GlobalWise Investments, Inc.
GlobalWise Investments, Inc., via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company’s flagship platform, Intellivue™, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.
For additional information, please visit the Company’s corporate website: www.GlobalWiseInvestments.com
This press release may contain “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.
GlobalWise Investments, Inc.
Columbus, Ohio
www.GlobalWiseInvestments.com
614-388-8909
Contact@GlobalWiseInvestments.com
Mission Investor Relations
Atlanta, Georgia
http://www.MissionIR.com
404-941-8975
SciClone (SCLN) Announces China Government-Mandated ZADAXIN Price Reduction
FOSTER CITY, CA — (Marketwire) — 09/18/12 — SciClone Pharmaceuticals, Inc. (NASDAQ: SCLN) today announced that consistent with the China government’s review of pharmaceutical prices once a product has been included into the Reimbursement Drug List (“RDL”), the retail list price, or hospital pharmacy level price, of ZADAXIN® has been reduced by about 18% in China. Based on agreements with SciClone’s primary importers of ZADAXIN into China to share the price reduction, the actual impact on SciClone’s revenue and margins is anticipated to be significantly lower than the percentage reduction at the retail level, and is expected to be less than a 5% decrease, with the importation and distribution network taking the majority of the percentage decrease.
As SciClone’s prior financial guidance for 2012 included an anticipated price reduction impact in the range of approximately 7-8%, the newly announced NDRC price and related agreements with importers will result in a more favorable outcome than previously anticipated. SciClone plans to address any impact of this less than 5% price decrease on the 2012 guidance when it announces third quarter 2012 financial results.
SciClone also announced that the NDRC price of Aggrastat®, a recently launched intervention cardiology product, as well as several of its oncology products exclusively promoted in China for Pfizer and Baxter were reduced at or below the average price reduction announced by the government.
It is noteworthy that ZADAXIN, Aggrastat and several of our oncology products continue to be independently listed, a substantial benefit in the tendering process allowing for preferential pricing compared to generics.
Commented Friedhelm Blobel, Ph.D., President and Chief Executive Officer of SciClone: “We respect the China government’s policy of price reviews of pharmaceuticals once listed in the RDL, and have anticipated for close to three years that a price reduction for ZADAXIN would be enacted. We are pleased that this review process has now been completed. We appreciate our importers’ agreement to assume the majority of the impact of the price reduction. Their actions reflect how highly ZADAXIN is valued by our industry partners and by patients with serious medical conditions who may now have greater access to this important and more affordable therapy.”
Continued Dr. Blobel: “We believe that this price revision can positively affect ZADAXIN sales through increased volume and broader penetration into tier 3 as well as tier 2 cities in target geographies, and that it can strengthen our provincial tendering strategies. We have more than 300 professionals wholly focused on building ZADAXIN sales. We are confident that ZADAXIN will continue to be a major growth engine for SciClone, fueled by successfully penetrating more deeply and widely into the China market on the national, provincial, city and institutional levels. We are also hopeful that with Aggrastat’s price now set, the provincial bidding and tender processes will proceed, and we can accelerate sales for this novel cardiology product, which has significant therapeutic potential in the fast-growing coronary stent market.”
ZADAXIN (thymalfasin) is approved in over 30 countries and may be used for the treatment of HBV, HCV, as a vaccine adjuvant, and certain cancers according to the approvals SciClone has in these countries. In China, thymalfasin is also included in the treatment guidelines issued by the Ministry of Health (“MOH”) for liver cancer. ZADAXIN was launched by SciClone in China in 1996, and was included as a Category B product in the RDL in 2009. In 2011, ZADAXIN annual worldwide sales exceeded $100 million. ZADAXIN has strong brand recognition, is positioned as a high-quality, imported product, and is one of the largest imported pharmaceutical products in China, measured by revenue. SciClone estimates its volume market share of thymalfasin is approximately 15%. SciClone believes that it has established a strong sales and marketing organization and strong importation relationships with distribution channels which have facilitated ZADAXIN’s strong growth in sales, profitability, and substantial cash flow. SciClone has built a strong commercial presence in liver disease, cancer and the intensive care setting, and is expanding geographically in China to position the Company for further growth.
About SciClone
SciClone Pharmaceuticals is a revenue-generating, profitable, specialty pharmaceutical company with a substantial commercial business in China and a product portfolio of therapies for oncology, infectious diseases and cardiovascular, urological, respiratory, and central nervous system disorders. SciClone’s ZADAXIN® (thymalfasin) is approved in over 30 countries and may be used for the treatment of hepatitis B (HBV), hepatitis C (HCV) and certain cancers, and as a vaccine adjuvant, according to the local regulatory approvals. Besides ZADAXIN, SciClone markets about 15 mostly partnered products in China, including Depakine®, the most widely prescribed broad-spectrum anti-convulsant in China; Tritace®, an ACE inhibitor for the treatment of hypertension; Stilnox®, a fast-acting hypnotic for the short-term treatment of insomnia (marketed as Ambien® in the US); and Aggrastat®, a recently-launched interventional cardiology product. SciClone is also pursuing the registration of several other therapeutic products in China. SciClone is headquartered in Foster City, California. For additional information, please visit www.sciclone.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding expected financial results and expectations and the effect of the announced retail price reduction. Readers are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “might,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” “unaudited,” “approximately” or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risk and uncertainties relating to: the course, cost and outcome of regulatory matters, including pricing decisions by authorities in China; the on-going regulatory investigations; the Company’s ability to execute on its goals in China and on its objectives for revenue in fiscal 2012; the challenges presented by integrating an acquired business into existing operations; the variability in earnings on a GAAP basis that may result from non-cash charges related to the NovaMed acquisition; the dependence on third party license, promotion or distribution agreements including the need to renew such agreements; operating an international business; the clinical trial process, including the regulatory approval and the process of initiating trials at, and enrolling patients at, clinical sites; the effect of changes in its practices and policies related to the Company’s compliance programs. SciClone cannot predict the timing or outcome of the SEC and DOJ investigations, or of the level of its efforts required to cooperate with those investigations, however the Company has incurred substantial expenses in connection with the investigations and related litigation and expects to incur additional expense and the investigations could result in fines and further changes in its internal control or other remediation measures that could adversely affect its business. Please also refer to other risks and uncertainties described in SciClone’s filings with the SEC. All forward-looking statements are based on information currently available to SciClone and SciClone assumes no obligation to update any such forward-looking statements.
Ambien, Depakine, Stilnox and Tritace are registered trademarks of Sanofi and/or its affiliates.
Aggrastat is a registered trademark of Medicure International Inc. in the United States, and Iroko Cardio LLC in numerous other countries.
SciClone, SciClone Pharmaceuticals, the SciClone Pharmaceuticals design, the SciClone logo and ZADAXIN are registered trademarks of SciClone Pharmaceuticals, Inc. in the United States and numerous other countries.
Corporate Contacts
Gary Titus
Chief Financial Officer
650.358.3456
gtitus@sciclone.com
Jane Green
Investors/Media
650.358.1447
Denison Mines Corp. (DNN) Comments on Recent Market Activity
TORONTO, ONTARIO — (Marketwire) — 09/18/12 — Denison Mines Corp. (“Denison” or the “Company”) (TSX:DML)(NYSE MKT:DNN)(NYSE Amex:DNN), in response to a request of the Investment Industry Regulatory Organization of Canada (IIROC) on behalf of the Toronto Stock Exchange, confirms that there are no material undisclosed corporate developments that might account for the increased trading activity of the Company’s shares today. Denison does not otherwise comment on market activity.
About Denison
Denison Mines Corp. is a uranium exploration and development company with interests in exploration and development projects in Saskatchewan, Zambia and Mongolia. As well, Denison has a 22.5% ownership interest in the McClean Lake uranium mill, located in northern Saskatchewan, which is one of the world’s largest uranium processing facilities. Denison’s exploration project portfolio includes the world-class Phoenix deposit located on its 60% owned Wheeler River project also in the Athabasca Basin region of Saskatchewan.
Denison is engaged in mine decommissioning and environmental services through its Denison Environmental Services (DES) division. Denison is also the manager of Uranium Participation Corporation (TSX-U), a publicly traded company which invests in uranium oxide in concentrates and uranium hexafluoride.
Cautionary Statements
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison believes that the expectations reflected in this forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this press release should not be unduly relied upon. This information speaks only as of the date of this press release. In particular, this press release may contain forward-looking information pertaining to the following: the estimates of Denison’s mineral resources; capital expenditure programs; estimated production costs, exploration and development expenditures and reclamation costs; expectations of market prices and costs; supply and demand for uranium; possible impacts of litigation and regulatory actions on Denison; exploration, development and expansion plans and objectives; Denison’s expectations regarding raising capital and adding to its mineral resources through acquisitions and development; and receipt of regulatory approvals, permits and licences and treatment under governmental regulatory regimes.
There can be no assurance that such statements will prove to be accurate, as Denison’s actual results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under the heading “Risk Factors” in Denison’s Annual Information Form dated March 28, 2012, available at http://www.sedar.com, and in its Form 40-F available at http://www.sec.gov, as well as the following: global financial conditions, the market price of Denison’s securities, volatility in market prices for uranium; ability to access capital, changes in foreign currency exchange rates and interest rates; liabilities inherent in mining operations; uncertainties associated with estimating mineral reserves and resources and production; uncertainty as to reclamation and decommissioning liabilities; failure to obtain industry partner and other third party consents and approvals, when required; delays in obtaining permits and licenses for development properties; competition for, among other things, capital, acquisitions of mineral reserves, undeveloped lands and skilled personnel; public resistance to the expansion of nuclear energy and uranium mining; uranium industry competition and international trade restrictions; incorrect assessments of the value of acquisitions; property title risk; geological, technical and processing problems; the ability of Denison to meet its obligations to its creditors; actions taken by regulatory authorities with respect to mining activities; the potential influence of or reliance upon its business partners, and the adequacy of insurance coverage.
Accordingly, readers should not place undue reliance on forward-looking statements. These factors are not, and should not be construed as being, exhaustive. Statements relating to “mineral reserves” or “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
Contacts:
Denison Mines Corp.
Ron Hochstein
President and Chief Executive Officer
(416) 979-1991 Extension 232
Denison Mines Corp.
James R. Anderson
Executive Vice President and Chief Financial Officer
(416) 979-1991 Extension 372
Misonix (MSON) Reports Strong Revenue Increases
Revenue Up 26.7% For Year Ended June 2012
FARMINGDALE, N.Y., Sept. 18, 2012 /PRNewswire/ — Misonix, Inc. (NASDAQ: MSON), a surgical device company that designs, manufactures and markets innovative therapeutic ultrasonic products worldwide for spine surgery, cranial maxillo – facial surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery and other surgical applications, today reported financial results for the fourth quarter and the fiscal year ending June 30, 2012.
Highlights for the quarter and the fiscal year include:
- Sales for the fourth quarter of fiscal 2012 increased 41% to $5.3 million compared to $3.8 million in the comparable quarter of fiscal 2011. For the fiscal year, revenues increased 27% to $15.7 million compared to $12.4 million for the full year ending June 30, 2011.
- Gross margin increased 100 basis points to 58% for the three months ended June 30, 2012 versus June 30, 2011. For the fiscal year, gross margin increased 150 basis points to 59%.
- BoneScalpel™ revenues increased 82% for the fourth quarter versus the prior year three month period. For the fiscal year, BoneScalpel revenues increased 92% versus the comparable period last year.
- SonicOne™ revenues increased 89% for the fourth quarter versus the comparable quarter of fiscal 2011. SonicOne revenues increased 17% for the fiscal year versus the comparable period last year.
- SonaStar™ revenues increased 21% for the fourth quarter versus the comparable quarter of fiscal 2011. SonaStar revenues increased 44% for the fiscal year versus the comparable period last year.
- Net income for the quarter was $444,813, or $0.06 per diluted share, compared to a net loss of $1.45 million, or $(0.21) per diluted share in the fourth quarter of 2011. For the full year, the Company reported net income of $366,325, or $0.05 per diluted share, compared to a net loss of $3.5 million, or $(0.50) per diluted share in fiscal 2011.
- Cash and cash equivalents totaled $6.3 million at June 30, 2012 with no long-term debt.
Q4 2012 Financial Results:
For the fourth quarter of fiscal 2012, revenues increased 41% to $5.3 million compared to $3.8 million for the three months ended June 30, 2011. BoneScalpel revenues for the quarter increased 82% to $1.7 million compared to $906,961 in the comparable quarter of fiscal 2011. SonicOne revenues increased 89% to $517,574 compared to $273,608 in the fourth quarter last year. SonaStar revenues increased 21% to $1.7 million compared to $1.4 million in the fourth quarter last year.
Gross margin increased to 58% for the fourth quarter of fiscal 2012 from 57% for the fourth quarter ended June 30, 2011. Operating expenses for the fourth fiscal quarter increased six percent primarily attributable to continued expansion of the Company’s in house sales force, commissions on expanded product sales and increased advertising and depreciation expense due to increased rented/leased/no-cap units in the field. Income from continuing operations before income taxes for the quarter was $337,042 compared to a loss from continuing operations before income taxes of $440,303 in the fourth quarter of 2011.
The financial results for the fourth quarter included net income from discontinued operations of $201,124, or $0.03 per fully diluted share – adjusted for taxes – primarily related to the sale of the Company’s Laboratory and Forensic Safety Products business.
For the fourth quarter of fiscal year 2012, the Company reported net income of $444,813, or $0.03 per diluted share, compared to a net loss of $1.45 million, or $(0.21) per diluted share, in the fourth quarter of fiscal 2011.
Full year 2012 Financial Results:
Net sales increased 27% to $15.7 million for the full year ended June 30, 2012 from $12.4 million in the full year ended June 30, 2011. BoneScalpel revenues for the full year increased 92% to $4.8 million compared to $2.5 million in the prior year. SonicOne revenues increased 17% to $1.3 million compared to $1.1 million in fiscal year 2011. SonaStar revenues increased 44% to $5.9 million compared to $4.1 million in fiscal year 2011.
Gross margin increased to 59% for the full year ended June 30, 2012 from 57% for the comparable full year fiscal 2011. Operating expenses for the fiscal year increased nine percent primarily attributable to continued expansion of the Company’s in house sales force, commissions on expanded product sales and increased advertising and depreciation expense due to increased rented/leased/no-cap units in the field. For the fiscal year the Company reported a net loss from continuing operations before income taxes of $608,765 compared to a net loss from continuing operations before income taxes of $2.1 million in fiscal year 2011.
The financial results for the full year included net income from discontinued operations of $975,090, or $0.14 per fully diluted share – adjusted for taxes – primarily related to the sale of the Company’s Laboratory and Forensic Safety Products business.
For the full year of fiscal year 2012, the Company reported a net income of $366,325, or $0.05 per diluted share, compared to a net loss of $3.5 million, or $(0.50) per diluted share, in full fiscal year 2011.
Michael A. McManus Jr., President and Chief Executive Officer of Misonix, commented, “We are very pleased with the results of the quarter and the fiscal year. Our strategic goal has been to transition Misonix to be a focused surgical device company – and we have succeeded in achieving that goal. Going forward we have three main goals: continue to successfully place instruments throughout the surgical community worldwide; substantially grow recurring revenues through the sale of disposables; and continue to expand our worldwide distribution system.
“In that regard, we continue to gain traction in placing instruments in the market, both domestically and internationally. We achieved solid double-digit sales growth in our BoneScalpel, SonicOne and SonaStar product lines for the fourth quarter and the fiscal year. For fiscal the year U.S. sales increased 12% while international sales increased 58% as our expanding distribution channel throughout the world becomes more fully engaged in the sales process. We are particularly pleased with the 548% sales increase in Asia, primarily driven by our Korean distributor and the 49% increase in European sales, largely driven by our new eastern European distributors. In addition, Canada and Mexico, as well as South America and the Middle East contributed strong double-digit sales increases. This bodes well for the coming years.”
“Our products are gaining wider acceptance as more surgical professionals throughout the world become aware of the effectiveness and the efficiencies of our products,” continued Mr. McManus. “We believe that our leading-edge instruments provide surgeons the ability to spare surrounding tissue and minimize nerve-end vessel damage, while executing intricate and delicate procedures that can provide better patient outcomes, improved quality of life, and generate cost efficiencies across the patient’s treatment continuum. These are strong attributes that will serve us well in successfully selling our instruments worldwide.”
Mr. McManus concluded, “At the end of fiscal year 2012 the financial underpinnings of the Company are strong. We have a solid balance sheet with $6.3 million in cash and equivalents and zero long-term debt. While we are still in the early stages of operating as a pure play surgical devices provider, we are beginning to post measurable results that indicate success in executing our strategic plan. We are excited about the opportunities ahead.”
Conference Call:
Michael A. McManus Jr., President and Chief Executive Officer, and Richard Zaremba, Senior Vice President and Chief Financial Officer, will host a conference call Tuesday, September 18, 2012 at 4:30 pm ET to discuss the Company’s fourth quarter and year-end results.
Shareholders and other interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789 or can listen via a live Internet webcast, which is available in the Investor Relations section of the Company’s website at www.misonix.com.
A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, confirmation # 10018380. A webcast replay will be available in the Investor Relations section of the Company’s website at www.misonix.com for 30 days.
About Misonix:
Misonix, Inc. designs, manufactures and markets therapeutic ultrasonic medical devices. Misonix’s therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually; Misonix’s proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company’s Web site at www.misonix.com.
With the exception of historical information contained in this press release, content herein may contain “forward looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, risks associated with international sales and currency fluctuations, uncertainties as a result of research and development, acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy, risks involved in introducing and marketing new products, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, the timing of finding strategic partners and implementing such relationships, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company’s business lines, and other factors discussed in the Company’s Annual Report on Form 10 K, subsequent Quarterly Reports on Form 10 Q and Current Reports on Form 8 K. The Company disclaims any obligation to update its forward looking relationships.
|
Misonix Contact: |
Investor Relations Contact: |
|
Richard Zaremba |
Joe Diaz, Lytham Partners |
|
631 694 9555 |
602 889 9700 |
|
invest@misonix.com |
mson@lythampartners.com |
|
MISONIX, INC. And Subsidiaries Consolidated Statements of Operations Unaudited |
|||||
|
Three Months Ended |
Twelve Months Ended |
||||
|
June 30, |
June 30, |
||||
|
2012 |
2011 |
2012 |
2011 |
||
|
Net sales |
$5,300,520 |
$3,765,434 |
$15,678,000 |
$12,373,029 |
|
|
Cost of goods sold |
2,240,933 |
1,631,442 |
6,467,126 |
5,286,646 |
|
|
Gross profit |
3,059,587 |
2,133,992 |
9,210,874 |
7,086,383 |
|
|
Selling expenses |
1,411,752 |
1,185,403 |
5,031,831 |
3,885,784 |
|
|
General and administrative expenses |
1,102,320 |
1,165,183 |
4,376,554 |
4,499,521 |
|
|
Research and development expenses |
345,241 |
335,894 |
1,292,225 |
1,431,627 |
|
|
Total operating expenses |
2,859,313 |
2,686,480 |
10,700,610 |
9,816,932 |
|
|
Operating income (loss) from continuing operations |
200,274 |
(552,488) |
(1,489,736) |
(2,730,549) |
|
|
Total other income |
136,768 |
112,185 |
686,189 |
689,878 |
|
|
Income (loss) from continuing operations before income taxes |
337,042 |
(440,303) |
(803,547) |
(2,040,671) |
|
|
Income tax expense (benefit) |
93,353 |
18,116 |
(194,782) |
64,216 |
|
|
Net income (loss) from continuing operations |
243,689 |
(458,419) |
(608,765) |
(2,104,887) |
|
|
Discontinued operations: |
|||||
|
Net income (loss) from discontinued operations, net of income tax expense(benefit) of $(185,336), $0, $(89,236) and $0 |
201,124 |
(990,337) |
(445,987) |
(1,429,359) |
|
|
Gain from sale of discontinued operations, net of income tax expense of $0, $0, $284,337 and $0 |
– |
1,421,077 |
– |
||
|
Net income (loss) from discontinued operations |
201,124 |
(990,337) |
975,090 |
(1,429,359) |
|
|
Net income (loss) |
$444,813 |
($1,448,756) |
$366,325 |
($3,534,246) |
|
|
Net income (loss) per share from continuing operations-Basic |
$0.03 |
($0.07) |
($0.09) |
($0.30) |
|
|
Net income (loss) per share from discontinued operations-Basic |
0.03 |
(0.14) |
0.14 |
(0.20) |
|
|
Net income (loss) per share-Basic |
$0.06 |
($0.21) |
$0.05 |
($0.50) |
|
|
Net income (loss) per share from continuing operations-Diluted |
$0.03 |
($0.07) |
($0.09) |
($0.30) |
|
|
Net income (loss) per share from discontinued operations-Diluted |
0.03 |
(0.14) |
0.14 |
(0.20) |
|
|
Net income (loss) per share-Diluted |
$0.06 |
($0.21) |
$0.05 |
($0.50) |
|
|
Weighted average common shares-basic |
7,003,588 |
7,001,370 |
7,001,930 |
7,001,370 |
|
|
Weighted average common shares-diluted |
7,046,790 |
7,001,370 |
7,001,930 |
7,001,370 |
|
|
MISONIX, INC. And Subsidiaries |
||||
|
Consolidated Balance Sheets |
||||
|
Unaudited |
||||
|
June 30, 2012 |
June 30, 2011 |
|||
|
Assets |
||||
|
Current Assets: |
||||
|
Cash and cash equivalents |
$6,273,015 |
$6,881,093 |
||
|
Accounts receivable, less allowance |
||||
|
for doubtful accounts of $155,739 and |
||||
|
$115,739, respectively |
3,158,084 |
2,085,972 |
||
|
Inventories, net |
4,380,841 |
3,130,207 |
||
|
Prepaid expenses and other current assets |
306,691 |
374,472 |
||
|
Note receivable |
198,117 |
210,000 |
||
|
Current assets of discontinued operations |
– |
857,095 |
||
|
Total current assets |
14,316,748 |
13,538,839 |
||
|
Property, plant and equipment, net |
891,822 |
969,336 |
||
|
Goodwill |
1,701,094 |
1,701,094 |
||
|
Intangible and other assets |
1,403,173 |
2,127,194 |
||
|
Assets of discontinued operations |
– |
21,859 |
||
|
Total assets |
$18,312,837 |
$18,358,322 |
||
|
Liabilities and stockholders’ equity |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ 1,507,695 |
$ 1,110,694 |
||
|
Accrued expenses and other current liabilities |
1,074,932 |
1,969,078 |
||
|
Liabilities of discontinued operations |
– |
225,864 |
||
|
Total current liabilities |
2,582,627 |
3,305,636 |
||
|
Deferred income |
117,147 |
161,360 |
||
|
Deferred lease liability |
22,996 |
14,043 |
||
|
Total liabilities |
2,722,770 |
3,481,039 |
||
|
Commitments and contingencies |
||||
|
Stockholders’ equity: |
||||
|
Capital stock, $0.01 par value – shares authorized 20,000,000; 7,082,920 and |
||||
|
7,079,170 issued and 7,005,360 and 7,001,370 shares outstanding, respectively |
70,829 |
70,792 |
||
|
Additional paid-in capital |
26,132,951 |
25,787,960 |
||
|
Accumulated deficit |
(10,202,720) |
(10,569,045) |
||
|
Treasury stock, at cost, 77,560 and 77,800 shares, respectively |
(410,993) |
(412,424) |
||
|
Total stockholders’ equity |
15,590,067 |
14,877,283 |
||
|
Total liabilities and stockholders’ equity |
$18,312,837 |
$18,358,322 |
||
SOURCE Misonix, Inc.
Nuance to Acquire Ditech Networks (DITC)
Nuance Communications, Inc. (NASDAQ: NUAN) announced it has signed an agreement to acquire Ditech Networks, Inc. (NASDAQ: DITC). Ditech Networks’ voice technologies, including the company’s Voice Quality Assurance (VQA) technology and PhoneTag voicemail-to-text services, will further enhance Nuance’s portfolio of mobile and enterprise voice offerings.
As voice is increasingly integrated with a broad array of products and services, people expect seamless interactions that simply work anytime and anywhere. Ditech Networks’ portfolio of voice technologies will help Nuance continue its pace-setting innovations for carriers, consumers and enterprises across an array of products and services. In particular, Ditech Networks’ PhoneTag service will enhance Nuance’s Dragon Voice to Text Services business by adding important customers and complementary technologies, and further advance innovation supporting Nuance’s highly secure, on-premise voice to text platform.
“The world’s most innovative carriers and unified communications providers work with Nuance to take advantage of the revolution in voice recognition, and nowhere is this more evident than in our voicemail to text and call completion businesses, where billions of calls are converted into easily read text and email messages – a powerful solution for today’s messaging-centric world,” said John Pollard, Vice President and General Manager, Voice to Text Services, Nuance Mobile. “Acquiring Ditech Networks’ voice technologies will help Nuance continue to drive these next-generation services.”
Nuance has agreed to acquire Ditech Networks for $1.45 per share in cash, representing a total enterprise value of approximately $22.5 million, net of Ditech Networks’ cash as of the signing date. The transaction has been unanimously approved by the Boards of Directors of each company. The transaction is expected to close late in 2012, subject to Ditech Networks stockholder approval and other closing conditions.
“Ditech Networks’ voice technologies combined with Nuance’s voice and language understanding portfolio is an exciting proposition for our combined customer and partner base, while providing a unique opportunity to extend the value and benefits of our technologies into new markets,” said Ken Naumann, CEO, Ditech Networks.
About Ditech Networks
Ditech Networks provides advanced voice processing solutions that enable carriers, enterprises, and consumers to benefit from the power and simplicity of human speech. Ditech Networks is headquartered in San Jose, California. For more information, visit www.ditechnetworks.com.
About Nuance Communications, Inc.
Nuance is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications and professional services. For more information, please visit: nuance.com.
Additional Information and Where to Find It.
In connection with the proposed transaction, Ditech Networks will be filing documents with the SEC, including preliminary and definitive proxy statements relating to the proposed transaction. The definitive proxy statement will be mailed to Ditech Networks stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PRELIMINARY AND DEFINITIVE PROXY STATEMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders may obtain free copies of these documents (when they are available) and other related documents filed with the SEC at the SEC’s web site at www.sec.gov, on Ditech Networks’ website at www.ditechnetworks.com and by contacting Ditech Networks Investor Relations at (408) 883-3682.
Ditech Networks, Nuance and their respective directors and executive officers may be deemed participants in the solicitation of proxies from the stockholders of Ditech Networks in connection with the proposed transaction. Information regarding the special interests of Ditech Networks’ directors and executive officers in the proposed transaction will be included in the proxy statement described above. These documents are available free of charge at the SEC’s web site at www.sec.gov and from Ditech Networks Investor Relations as described above. Information about Nuance’s directors and executive officers can be found in Nuance’s definitive proxy statement filed with the SEC on December 15, 2011. You can obtain a free copy of this document at the SEC’s website at www.sec.gov or by accessing Nuance’s website at www.nuance.com and clicking on the “Investor Relations” link and then clicking on the “SEC Filings” link.
Nuance and the Nuance logo are trademarks or registered trademarks of Nuance Communications, Inc. or its subsidiaries in the United States of America and/or other countries. All other company names or product names may be the trademarks of their respective owners.
Statements in this press release regarding the anticipated closing date of the transaction between Nuance and Ditech Networks, the expected benefits to Nuance and its customers of the transaction, future product offerings by the combined company, and any other statements about Nuance managements’ future expectations, beliefs, goals, plans or prospects constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “will,” “expected,” and other similar expressions) should also be considered to be forward looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward looking statements, including: the transaction is subject to closing conditions that if not met or waived would cause the transaction not to close; the ability of Nuance to successfully integrate Ditech Networks’ operations, product offerings and employees; the ability to realize anticipated synergies and cost savings; the failure to retain customers and/or key employees; and the other factors described in Nuance’s Annual Report on Form 10-K for the fiscal year ended September 30, 2011, and other filings with the U.S. Securities and Exchange Commission. Ditech Networks and Nuance disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this press release.
Duma Energy Corp. (DUMA) Zacks Initiating Coverage
Duma Energy Corp (OTC BB:DUMA) is an oil and natural gas company that owns producing properties in Texas and Illinois. The company has a significant interest is leases under exploration in Namibia that exceed 5 million acres with an estimated billion bbls of reserves in just one structure.
The company is profitable and revenue is growing rapidly. Our fiscal year 2013 (July 31) estimates are $20 million in revenue and $0.22 a share in earnings. Fiscal 2014 estimates are $34 million and $0.53 a share. The P/E on 2014 earnings is 3.6.
We are initiating coverage with an outperform rating and a $5 price target.
Please visit scr.zacks.com to access a free copy of the full research report.
SPAR Group (SGRP) Announces Acquisition of U.S. Merchandising Services Company
TARRYTOWN, NY — (Marketwire) — 09/17/12 — SPAR Group, Inc. (NASDAQ: SGRP) (the “Company” or “SPAR Group”), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced that the company has acquired 51% of a U.S. based company that provides merchandising services to multiple Fortune 500 companies. The company is currently generating approximately $3 million in annual revenue specializing primarily on in-store merchandising and new store opening and remodeling projects.
“SPAR Group is pleased to announce the expansion of our domestic business,” said Gary Raymond, Chief Executive Officer of SPAR Group Inc. “This acquisition is part of management’s strategic plan to expand the overall scope of our U.S. based merchandising efforts in order to establish the company as the true market leader within the domestic retail merchandising industry. This acquisition, coupled with several additional U.S. opportunities, will allow us to strengthen our long-term competitive position in our targeted markets and enable us to service a broader range of retailers and manufacturers. We are pleased to tell our shareholders that this transaction combined with our recent international contract awards and newly announced Romania joint venture, place SPAR Group on a growth trajectory to achieve over $100 million in revenue going forward.”
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and marketing services Company and provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores, as well as providing furniture and other product assembly services, in-store events, radio frequency identification (“RFID”) services, technology services and marketing research. The Company has supplied these project and product services in the United States since certain of its predecessors were formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. Product services include restocking and adding new products, removing spoiled or outdated products, resetting categories “on the shelf” in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls. The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India. For more information, visit the SPAR Group’s website at http://www.sparinc.com/.
Forward Looking Statements
Certain statements in this news release are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase SPAR Group’s revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company’s control. The Company’s actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group’s selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
Contact:
James R. Segreto
Chief Financial Officer
SPAR Group, Inc.
(914) 332-4100
Investors:
Alan Sheinwald
Alliance Advisors, LLC
(212) 398-3486
Email Contact
Chris Camarra
Alliance Advisors, LLC
(212) 398-3487
Anthera Announces the Advancement of Blisibimod into Phase 3
HAYWARD, Calif., Sept. 17, 2012 /PRNewswire/ — Anthera Pharmaceuticals, Inc. (Nasdaq: ANTH), a biopharmaceutical company developing drugs to treat serious diseases associated with inflammation and autoimmune disorders, today provided an update on regulatory discussions for the global development of blisibimod. End of Phase 2 discussions with the US Food and Drug Administration (FDA) have been completed and will allow for the submission of Phase 3 protocols and the initiation of registration studies. Earlier in 2012, Anthera received a written response from the European Medicines Agency (EMA) providing similar development feedback for the blisibimod program.
“We appreciate the FDA’s rapid response to our development proposal for blisibimod. We will incorporate their comments and begin the initiation of our Phase 3 lupus program,” said Paul F. Truex, Anthera’s President and CEO. “The PEARL-SC clinical study provided meaningful insight into the importance of selecting an appropriate patient population while also defining a meaningful endpoint. We are grateful the FDA found this approach to be acceptable for further study and look forward to bringing blisibimod one step closer to patients in need.”
The Phase 3 studies (CHABLIS-SC1 and CHABLIS-SC2) will be multicenter, placebo-controlled, randomized, double-blind studies designed to evaluate the efficacy, safety, tolerability and immunogenicity of blisibimod in patients with clinically active SLE (SELENA-SLEDAI > 10) who have not achieved optimal resolution of their disease with corticosteroid use. Patients will be treated in the controlled part of each study for 52 weeks after which they will have the option to receive additional treatment as part of an open-label, long-term, follow-up safety study. The primary endpoint of the CHABLIS studies will be a Systemic Lupus Erythematosus Response Index (SRI*) including the requirement of an eight-point or greater improvement from baseline in the SELENA/SLEDAI disease measurement (SRI-8).
“The use of an SRI-8 endpoint, in a population with higher baseline disease activity requires patients to demonstrate improvement in the clinical presentations of SLE, such as skin, mucosal, joint disease and kidney disease,” said Colin Hislop, Anthera’s Chief Medical Officer. “For example, the blisibimod 200 mg weekly dose reduced proteinuria by nearly 1 gram per 24 hours at Week 24 compared with minimal change in the placebo group. This corresponds to an approximate 50% decrease from baseline. These types of improvements were responsible for the majority of clinical benefits seen in the PEARL-SC study and highlights blisibimod’s potential to help patients with more active disease.”
As previously reported, results from the PEARL-SC study indicate that in the predefined population of patients with clinically active disease (SELENA-SLEDAI > 10) who were also taking corticosteroids, the SRI-8 treatment benefit in the 200 mg weekly blisibimod cohort was statistically significant at week eight (22.6% blisibimod response versus 6.4% placebo response, p=0.023) and at week 16 (35.4% blisibimod response versus 17.0% placebo response, p=0.04) through the 24 week endpoint (41.7% blisibimod response versus 10.4% placebo response, p<0.001). Results from the PEARL-SC clinical study have been submitted to the American College of Rheumatology for presentation at the ACR/ARHP Annual Scientific Meeting 2012 in Washington, D.C.
*SRI is defined as patients who respond to treatment and achieve a reduction in SELENA-SLEDAI equal to or greater than the number indicated, no new BILAG A or two B organ domain scores, and no increase in Physician’s Global Assessment (PGA) of greater than 0.3 on a three point scale.
About Anthera Pharmaceuticals
Anthera Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing products to treat serious diseases associated with inflammation and autoimmune diseases.
Safe Harbor Statement
Any statements contained in this press release that refer to future events or other non-historical matters, including statements that are preceded by, followed by, or that include such words as “estimate,” “intend,” “anticipate,” “believe,” “plan,” “goal,” “expect,” “project,” or similar statements, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Anthera’s expectations as of the date of this press release and are subject to certain risks and uncertainties that could cause actual results to differ materially as set forth in Anthera’s public filings with the SEC, including Anthera’s Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. Anthera disclaims any intent or obligation to update any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.
CONTACT: Bianca Nery of Anthera Pharmaceuticals, Inc., bnery@anthera.com or 510.856.5586.
Timberline (TLR) Announces New Joint Venture Partner
COEUR D’ALENE, IDAHO — (Marketwire) — 09/17/12 — Timberline Resources Corporation (TSX VENTURE:TBR)(NYSE MKT:TLR)(NYSE Amex:TLR) (“Timberline” or the “Company”) announced today that its joint venture partner, Highland Mining, LLC (“Highland”) has sold its 50-percent interest in Butte Highlands JV, LLC (“BHJV”) to Montana State Gold Company, LLC (“MSGC”), a privately-owned Montana limited liability company. Highland will continue to be Timberline’s 50-percent joint venture partner at its Butte Highlands Gold Project, with MSGC funding development of the underground gold mine up to the commencement of commercial production. As a result of this sale, Timberline’s previously-announced non-binding letter of intent to acquire Highland’s interest in BHJV has terminated.
Timberline will continue to own a 50-percent carried-to-production interest in BHJV, as it has since the inception of the joint venture to develop Butte Highlands. MSGC has acquired Highland’s loan in the amount of approximately $24-million for development costs incurred at Butte Highlands to-date and will fund all remaining mine development costs through to commercial production. MSGC’s funding source is ISR Capital, a private investment and merchant-banking firm headquartered in Boise, Idaho. Both Timberline’s and MSGC’s shares of development costs, including the loan acquired by MSGC, will be repaid from proceeds of future mine production.
Paul Dircksen, Timberline’s Chief Executive Officer, said, “We are pleased to welcome MSGC as our partner at Butte Highlands. While we had earlier anticipated gaining 100-percent ownership of the project, Ron Guill’s decision to sell Highland Mining to a well-funded organization with a mandate to create jobs through commercial production provides Timberline and its shareholders with an attractive alternative. We now envision the achievement of production at Butte Highlands without assuming the development risk and without dilutive equity financing, burdensome debt financing, or the sale of valuable royalties that would have inevitably been required had we funded mine development ourselves. Rather, we are effectively in the same position as we were with Ron; we have a 50-percent carried-to-production interest at Butte Highlands while we advance our Lookout Mountain gold project in Nevada toward production.
Ron Guill, a Timberline Director, Timberline’s largest shareholder, and prior owner of Highland Mining, said, “I believe that this transaction is in the best interest of Timberline’s shareholders. We have created a new partnership that will fully fund the BHJV through the final permitting phase, the remaining development, and into commercial production. I have full confidence in the Timberline team to guide this project through the remaining steps and into full-scale gold production, and in the MSGC team who are committed to creating jobs by providing the necessary funding. I intend to remain involved as a significant investor and as an advisor and Director of Timberline.”
Mr. Dircksen continued, “Timberline has led the permitting efforts at Butte Highlands since early this year. While the details of an amended BHJV operating agreement with MSGC are still being worked out, we expect to maintain the momentum we have gained through frequent and productive discussions with the regulators by continuing to take the lead role in all permitting discussions, meetings, and activities until we receive our operating permit. We expect that we will receive the operating permit in mid-2013 and that gold production will commence soon after.”
As announced previously, the initial mine plan at Butte Highlands targets production of approximately 400 tons per day for the first four to five years of operation with the mineralized material expected to be direct shipped to a nearby mill, eliminating the immediate need to permit, finance and construct a mill. Development and permitting progress achieved at the project to-date includes:
-- Permitting complete for surface facilities construction, underground
drilling and development, and a 10,000-ton bulk sample;
-- Production infrastructure and surface facilities are substantially
complete;
-- Mine development is advanced, with more than 4,000 feet of underground
workings complete;
-- 50,000-foot underground drill program to support initial mine planning
complete;
-- Water discharge (MPDES) permit application is complete and permit
expected Q4 2012;
-- Haulage road special use permit in process and expected Q4 2012;
-- Hard Rock Operating Permit final amendments to be completed in Q3 2012
with permit issuance expected in mid-2013;
-- Gold production expected to commence in mid-2013.
Butte Highlands is located approximately fifteen miles south of Butte, Montana within a favorable geologic domain that has hosted several world-class, multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City. The property was extensively drilled by Battle Mountain Gold, Placer Dome, ASARCO, and Orvana Minerals, prior to its acquisition by Timberline in 2006.
About Timberline Resources
Timberline Resources Corporation is exploring and developing advanced-stage gold properties in the western United States. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana where gold production is targeted to commence in mid-2013. Timberline’s exploration is primarily focused on the goldfields of Nevada, where it is advancing its flagship Lookout Mountain Project toward a production decision while exploring a pipeline of quality earlier-stage projects at its South Eureka Property and elsewhere. Timberline management has a proven track record of discovering economic mineral deposits and developing them into profitable mines.
Timberline is listed on the NYSE MKT where it trades under the symbol “TLR” and on the TSX Venture Exchange where it trades under the symbol “TBR”.
Forward-looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute 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. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the timing of the Company’s permit applications and permit issuances, the Company’s continued exploration and drill program at South Eureka and Lookout Mountain, the timing of assay results from such drilling program being released, the Company’s ability to expand the South Eureka resource, the timing or results of the Company’s drill programs at Butte Highlands, including the timing of completing applications and obtaining necessary permits, the timing of the development and estimates of the timing of the commencement of production of gold at the Company’s Butte Highlands project and projects on its South Eureka property, the potential life of the mine at the Butte Highlands project, the targeted production date for the Butte Highlands project, targeted date for production at South Eureka, the potential for a heap-leach mine at South Eureka, targeted dates for the South Eureka technical report and economic scoping study, and possible growth of the Company and the Company’s expected operations, including potential development of an open pit extraction and run-of-mine heap leach processing and operation at South Eureka. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to Timberline Resources Corporation, its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, risks related to the timing and completion of the drilling programs at Butte Highlands and South Eureka, risks and uncertainties related to mineral estimates, risks related to the inherently dangerous activity of mining, and other such factors, including risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. Except as required by Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Timberline Resources
Paul Dircksen
CEO
208.664.4859
ISR Capital
W. Kirk Williams
Corporate Counsel
Complete Genomics (GNOM) and BGI-Shenzhen Announce Definitive Agreement to Merge
Combination Will Create a Global Innovator in Whole Human Genomic Sequencing
MOUNTAIN VIEW, Calif. and SHENZHEN, China, Sept. 17, 2012 (GLOBE NEWSWIRE) — Complete Genomics, Inc. (Nasdaq:GNOM) (“Complete”), an innovative leader in whole human genomic sequencing, and BGI-Shenzhen (“BGI”), a leading international genomics company based in Shenzhen, China, today announced that they have entered into a definitive merger agreement. Through this agreement, a wholly-owned U.S. subsidiary of BGI will launch a tender offer to purchase all outstanding shares of common stock of Complete for $3.15 per share in cash, without interest. This price represents approximately a 54% premium to the $2.04 closing price per share of Complete common stock on June 4, 2012, the last trading day prior to Complete’s announcement that it was undertaking an evaluation of strategic alternatives to secure the financial resources needed for continued commercialization of its technology.
Complete’s board of directors has unanimously recommended that stockholders accept the offer and tender their shares. Based on the number of fully diluted outstanding shares of Complete, the aggregate value of the transaction is approximately $117.6 million. In addition, Complete and an affiliate of BGI have entered into an agreement pursuant to which Complete will be provided with up to $30 million in bridge financing for its operations following the signing of the merger agreement.
Complete provides whole human genome sequencing, which is used by research centers to conduct medical research that, in the future, is expected to be used by doctors and hospitals to improve both prevention and treatment of disease. BGI operates international genome sequencing centers, which support genetic research into agriculture, animals and humans and serve researchers around the world including the United States. The combination of the two companies is expected to bring together complementary scientific and technological expertise and R&D capabilities. Complete will continue to be operated as a separate company with headquarters and operations remaining in Mountain View, California.
BGI’s CEO Dr. Wang Jun said, “Complete has developed a proprietary whole human genome sequencing technology that, together with other sequencing platforms used by BGI, will fit well with our research and business requirements and position Complete to become an even more successful global innovator. We look forward to growing the business to improve medical research and, when clinical services are provided, support better disease diagnosis with tools that can be used by doctors and hospitals to treat their patients.”
“With the assistance of our advisors, we engaged in a thorough review of a broad set of possible alternatives for the company, and we believe the transaction with BGI represents the best outcome for our stockholders, offering them liquidity and a premium value,” said Dr. Clifford Reid, chairman and CEO of Complete. “In addition, it offers a great outcome for our customers, present and future. The combination of the companies’ resources provides an opportunity to accelerate our vision of providing researchers and physicians with the genomic information needed to prevent, diagnose, and treat cancers and other genetic diseases.”
The Offer and the Merger
Under the terms of the definitive merger agreement, a wholly-owned subsidiary of BGI will commence a tender offer to purchase all of the outstanding shares of Complete common stock for $3.15 per share in cash, without interest, within seven business days and the tender offer will remain open for a minimum of 20 business days following the commencement. All of Complete’s directors and executive officers as well as certain other major stockholders, who collectively own approximately 17.5% of the outstanding common stock of Complete, have entered into a tender and support agreement and have agreed to tender all of their shares pursuant to the tender offer. The tender offer is conditioned upon the satisfaction of various conditions, including, at least a majority of the outstanding common stock of Complete (determined on a fully diluted basis) being tendered, the termination of any waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, clearance by the Committee on Foreign Investment in the United States, the approval of certain governmental authorities in the People’s Republic of China, as well as the satisfaction of other customary conditions. The transaction is expected to be completed in early 2013. The merger agreement also provides for the parties to effect, subject to customary conditions, a merger to be completed following the completion of the tender offer which would result in all shares not tendered in the tender offer being converted into the right to receive $3.15 per share in cash, without interest.
Advisors
Citi is serving as financial advisor for the transaction to BGI and O’Melveny & Myers LLP is acting as BGI’s legal counsel. Complete is advised by Jefferies & Company and its legal counsel is Latham & Watkins LLP.
About BGI
BGI includes both private non-profit genomic research institutes and sequencing application commercial units that provide comprehensive sequencing and bioinformatics services for medical, agricultural and environmental applications. Our commercial activities help our customers achieve their research goals by delivering rapid, high-quality results using a broad array of cost-effective, cutting-edge technologies. Our customers also benefit from our scientific expertise and research experience that have generated over 250 publications in top-tier journals such as Nature and Science. BGI is recognized globally as an innovator for conducting international collaborative projects with leading research institutions to better mankind and our world. Additional information about BGI and its U.S. subsidiary, BGI Americas, can be found at www.genomics.cn/en and www.bgiamericas.com.
About Complete
Through its pioneering sequencing-as-a-service model, Complete provides the most accurate whole human genome sequencing available today. The ease of use and power of Complete’s advanced informatics and analysis systems provide genomic information needed to better understand the prevention, diagnosis, and treatment of diseases. Additional information can be found at http://www.completegenomics.com.
Additional Information and Where to Find It
The tender offer proposed by a wholly-owned U.S. subsidiary of BGI referred to in this release has not yet commenced, and this release is neither an offer to purchase nor a solicitation of an offer to sell securities. If and when the tender offer is commenced, (i) BGI will cause to be filed with the Securities and Exchange Commission (the “SEC”) a tender offer statement and (ii) Complete Genomics, Inc. (the “Company”) will file with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT (INCLUDING AN OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors may obtain a free copy of these documents (if and when they become available) and other relevant documents filed with the SEC through the website maintained by the SEC at www.sec.gov. In addition, investors and stockholders will be able to obtain free copies of these materials filed by the Company by contacting Investor Relations by telephone at (650) 943-2788, by mail at Complete Genomics, Inc., Investor Relations, 2071 Stierlin Court, Mountain View, California 94043, or by going to the Company’s Investor Relations page on its corporate website at www.completegenomics.com.
Note on Forward-Looking Statements
Certain statements either contained in or incorporated by reference into this document are forward-looking statements that involve risks and uncertainty. Future events regarding the proposed transactions and both the Company’s and BGI’s actual results could differ materially from the forward-looking statements. Factors that might cause such a difference include, but are not limited to, statements regarding the combined companies’ plans following, and the expected completion of, the proposed acquisition. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements and generally include statements that are predictive in nature and depend upon or refer to future events or conditions. Risks and uncertainties include the ability of the Company and BGI to complete the transactions contemplated by the Merger Agreement, including the parties’ abilities to satisfy the conditions to the consummation of the proposed acquisition; the possibility of any termination of the merger agreement; the timing of the tender offer and the subsequent merger; uncertainties as to how many of the Company’s stockholders will tender their shares of common stock in the tender offer; the possibility that various other conditions to the consummation of the tender offer or the subsequent merger may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the acquisition; other uncertainties pertaining to the business of the Company or BGI; legislative and regulatory activity and oversight; the continuing global economic uncertainty and other risks detailed in the Company’s public filings with the SEC from time to time, including the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2012, Quarterly Reports on Form 10-Q and its subsequently filed SEC reports, each as filed with the SEC, which contains and identifies important factors that could cause actual results to differ materially from those contained in the forward-looking statements. The reader is cautioned not to unduly rely on these forward-looking statements. Each of the Company and BGI expressly disclaims any intent or obligation to update or revise publicly these forward-looking statements except as required by law.
CONTACT: MEDIA CONTACTS
For Complete Genomics, Inc.:
David Olmos
Director of Editorial Strategies
Waggener Edstrom Worldwide Healthcare
Tel: (415) 547-7039
Mobile: (323) 547-0572
dolmos@waggeneredstrom.com
For BGI-Shenzhen:
In the U.S.
Jason Golz
Brunswick Group
Tel: (415) 671-7676
jgolz@brunswickgroup.com
In China
Martin Reidy
Brunswick Group
Tel: +86-10-5960-8600
mreidy@brunswickgroup.com
ProPhase Labs (PRPH) Rejects Non-Binding Proposal to Be Acquired
ProPhase Labs Rejects Non-Binding Proposal to Be Acquired for $1.40 per Share From Matrixx Initiatives
DOYLESTOWN, PA — (Marketwire) — 09/17/12 — ProPhase Labs, Inc. (NASDAQ: PRPH) (www.ProPhaseLabs.com) announced today that it previously received an unsolicited, non-binding proposal from Matrixx Initiatives, Inc. (“Matrixx”) to acquire the Company for $1.40 per share in cash, subject to further due diligence by Matrixx. Matrixx is the owner of the Zicam® brand of cold and allergy products and is a direct competitor to ProPhase’s Cold-EEZE® Cold Remedy product line. Matrixx is controlled by H.I.G. Bayside Debt & LBO Fund II L.P., a private equity investment fund.
ProPhase first received a non-binding proposal to be acquired by a to-be-formed affiliate of Matrixx in a letter dated May 29, 2012. This proposal was unanimously rejected by the Company’s Board of Directors. Matrixx then repeated its non-binding proposal on the same terms in a letter to ProPhase dated September 6, 2012. Matrixx repeated the identical non-binding proposal in a September 14, 2012 letter. The Matrixx September 14 letter is attached to the report on Schedule 13D filed by Matrixx late on September 14.
On September 4, 2012, Matrixx purchased for $200,000 a three year option to acquire 1,453,427 shares of the Company’s common stock for $1.40 per share from Guy J. Quigley, ProPhase’s former Chairman and Chief Executive Officer. Matrixx also acquired from Mr. Quigley a voting proxy to vote the shares subject to the option. The Company learned of Matrixx’s transactions with Mr. Quigley through the filing by Mr. Quigley of reports on Form 4 and Form 13 D filed with the SEC.
In response to the May 29th proposal from Matrixx, the Company engaged independent financial advisors. At a meeting of the Board of Directors held on June 28, 2012, the Company’s Board of Directors, after careful consideration and consultation with its advisors, unanimously voted to reject the Matrixx proposal. Among other things, the Board unanimously determined, among other things, that:
- The non-binding Matrixx proposal undervalues ProPhase’s current business and future prospects.
- The Matrixx proposal does not adequately reflect the true value of ProPhase’s unique market position, business opportunities and new product launches. The Board believes that the Company’s recent and potential future revenue growth will result in superior value to that offered by Matrixx in a sale transaction.
- The Matrixx proposal is conditioned upon Matrixx being permitted access to non-public and confidential ProPhase information. Even if Matrixx were to sign a confidentiality agreement, there is undue risk to ProPhase in disclosing confidential information to one of its largest and most aggressive competitors.
- The interests of ProPhase’s stockholders will be best served by the Company continuing to pursue its independent strategic plan. The Company has made substantial investments in its Cold-EEZE® brand and believes that shareholders should be given the opportunity to realize a return on these investments.
Ted Karkus, Chairman and Chief Executive Officer of the Company stated:
“It is the current shareholders of ProPhase, not the private equity owners of one of our primary competitors, who should benefit from the future potential created by our current strategies.
We have successfully implemented a business and marketing strategy designed to deliver superior results to our stockholders over the long term. First, we preserved the Cold-EEZE® brand, then we repositioned the brand, and now we are successfully growing and leveraging the brand. As we have consistently explained to our shareholders, it remains our view that by investing in our Cold-EEZE® brand, we are building our distribution platform and pipeline, which has led to securing increased shelf space with our retailers for the upcoming cold season, and which has provided us with the opportunity to introduce new and improved products, including the national launch of Cold-EEZE® Oral Spray and Cold-EEZE® Daytime/Nighttime QuickMelts® for the upcoming cold season.”
Mr. Karkus added:
“During 2011 and 2012, our revenues have been increasing while at the same time, based on available industry data, many competing cough/cold products in our category are experiencing notable declines in year over year sales. Therefore, we are not surprised, and in fact flattered, that our most significant cough/cold competitor recognizes our success to date, intrinsic value and future potential that current management has created, by suggesting that they acquire ProPhase.”
About ProPhase Labs
ProPhase Labs is a diversified natural health medical science company. It is a leading marketer of the Cold-EEZE® Cold Remedy brand as well as other cold relief products. Cold-EEZE® zinc gluconate lozenges are clinically proven to significantly reduce the severity and duration of the common cold. Cold-EEZE® customers include leading national retailers, chain food, drug and mass merchandise stores, wholesalers and distributors, as well as independent pharmacies. ProPhase Labs has several wholly owned subsidiaries including a manufacturing unit, which consists of an FDA registered facility to manufacture Cold-EEZE® lozenges and fulfill other contract manufacturing opportunities. ProPhase also owns 50% of Phusion Laboratories, LLC (“Phusion”). Phusion licenses a revolutionary proprietary technology that has the potential to improve the delivery and/or efficacy of many active ingredients or compounds. Phusion will formulate and test products to exploit market opportunities within ProPhase’s robust over-the-counter distribution channels. For more information visit us at www.ProPhaseLabs.com.
Forward Looking Information
Except for the historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties, including the difficulty of the acceptance and demand for our products, the impact of competitive products and pricing, the timely development and launch of new products, and the risk factors listed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any subsequent SEC filings.
Press Only Contact
Jenny Miranda
5W Public Relations
Tel: (212) 584-4295
jmiranda@5wpr.com
Investor Contact
Ted Karkus
Chairman and CEO
ProPhase Labs, Inc.
Celsion (CLSN) Phase III HEAT Study of ThermoDox in Primary Liver Cancer
Celsion Announces Independent Data Monitoring Committee Completes Last Intermediate Review of Phase III HEAT Study of ThermoDox(R) in Primary Liver Cancer Prior to Final Data
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LAWRENCEVILLE, NJ — (Marketwire) — 09/14/12 — Celsion Corporation (NASDAQ: CLSN), a leading oncology drug development company, today announced that the independent Data Monitoring Committee (DMC) for the Company’s HEAT Study, a fully enrolled, multinational, double-blind, placebo-controlled, pivotal Phase III trial of ThermoDox® in combination with radiofrequency ablation (RFA) for hepatocellular carcinoma (HCC or primary liver cancer), has completed a regularly scheduled review of all 701 patients enrolled in the trial and has unanimously recommended that the HEAT Study continue according to protocol to its final data readout. The HEAT Study is being conducted under a Special Protocol Assessment (SPA) agreed to with the U.S. Food and Drug Administration (FDA).
The primary endpoint for the HEAT Study, progression-free survival (PFS), is defined in the SPA. A total of 380 PFS events are required to reach the unblinding and planned final analysis of the study. Celsion reconfirmed that 380 PFS events are projected to occur in the fourth quarter of 2012, with top line results announced following DMC review and confirmation.
The DMC has reviewed study data at regular intervals, with the primary responsibilities of ensuring the safety of all patients enrolled in the study, the quality of the data collected, and the continued scientific validity of the study design. As part of its review of all 701 patients, the DMC monitored a quality matrix relating to the total clinical data set, confirming the timely collection of data, that all data are current as well as other data collection and quality criteria.
“We sincerely thank the DMC for their diligent work in ensuring the quality and consistency of data from all 701 patients in the HEAT Study, as we approach the announcement of top line results,” said Michael H. Tardugno, Celsion’s President and Chief Executive Officer. “The HEAT Study is the single largest study ever conducted in intermediate-stage primary liver cancer, the largest unaddressed cancer in oncology today. Celsion is well prepared for the outcome of the HEAT Study, with the regulatory, manufacturing, financial and commercial plans and resources in place to ensure success. We look forward to the next steps for ThermoDox® and remain confident in its potential to provide a new and important therapeutic option for patients with this disease.”
The HEAT Study, in addition to being conducted under an FDA Special Protocol Assessment, has received FDA Fast Track Designation and has been designated as a Priority Trial for liver cancer by the National Institutes of Health. ThermoDox® has been granted orphan drug designation in both the U.S. and Europe. The European Medicines Agency (EMA) has confirmed the HEAT Study provides an acceptable basis for submission of a marketing authorization application (MAA) for centralized review and approval. In addition to meeting the U.S. FDA and European EMA enrollment objectives, the HEAT Study has also enrolled a sufficient number of patients to support registrational filings in China, South Korea and Taiwan, three other large and important markets for ThermoDox®.
About Primary Liver Cancer
Primary liver cancer is one of the most deadly forms of cancer and ranks as the fifth most common solid tumor cancer. The incidence of primary liver cancer today is approximately 26,000 cases per year in the United States, approximately 40,000 cases per year in Europe and is rapidly growing worldwide at approximately 750,000 cases per year, 55 percent of which are in China, due to the high prevalence of Hepatitis B and C in developing countries. The World Health Organization estimates that primary liver cancer may become the number one cancer worldwide, surpassing lung cancer, by 2020.
About ThermoDox® and the Phase III HEAT Study
ThermoDox® is a proprietary heat-activated liposomal encapsulation of doxorubicin, an approved and frequently used oncology drug for the treatment of a wide range of cancers. In the HEAT Study, ThermoDox® is administered intravenously in combination with Radio Frequency Ablation (RFA). Localized mild hyperthermia (39.5 – 42 degrees Celsius) created by the RFA releases the entrapped doxorubicin from the liposome. This delivery technology enables high concentrations of doxorubicin to be deposited preferentially in a targeted tumor.
For primary liver cancer, ThermoDox® is being evaluated in a global, multi-center, randomized, pivotal Phase III HEAT Study at 79 clinical sites under an FDA Special Protocol Assessment. The study is designed to evaluate the efficacy of ThermoDox® in combination with RFA when compared to patients who receive RFA alone as the control. The primary endpoint for the study is progression-free survival with a secondary confirmatory endpoint of overall survival. Additional information on the Company’s ThermoDox® clinical studies may be found at www.clinicaltrials.gov.
About Celsion Corporation
Celsion is a leading oncology company dedicated to the development and commercialization of innovative cancer drugs including tumor-targeting treatments using focused heat energy in combination with heat-activated liposomal drug technology. Celsion has research, license, or commercialization agreements with leading institutions including the National Institutes of Health, Duke University Medical Center, University of Hong Kong, the University of Pisa, the UCLA Department of Medicine, the Kyungpook National University Hospital, the Beijing Cancer Hospital and the University of Oxford.
For more information on Celsion, visit our website: http://www.celsion.com.
Celsion wishes to inform readers that forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.
Celsion Investor Contact
David Pitts
Argot Partners
212-600-1902
Email Contact
Golden Star Resources (GSS) Redeems $6.13 Million of 4% Convertible Senior Unsecured Debentures
DENVER, CO–(Marketwire – September 14, 2012) – Golden Star Resources Ltd. (NYSE MKT: GSS) (TSX: GSC) (GHANA: GSR) (“Golden Star” or the “Company”) today announced that it has redeemed $6.13 million of its 4.00% Convertible Senior Unsecured Debentures due November 30, 2012, (the “Original Debentures”) by way of a privately negotiated transaction initiated by a certain holder of Original Debentures. All references to “$” in this press release are to United States dollars.
After purchasing and cancelling the $6.13 million of Original Debentures, an aggregate of $44.37 million principal amount of Original Debentures remains outstanding. As previously disclosed, the Company’s current financial plan is to pay the outstanding principal of the remaining Original Debentures plus accrued interest in cash.
COMPANY PROFILE
Golden Star Resources holds the largest land package in one of the world’s largest and most prolific gold producing regions. The Company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in Brazil in South America. Golden Star has approximately 259 million shares outstanding. Additional information is available at www.gsr.com.
This announcement does not constitute an offer to sell, nor is it a solicitation of an offer to sell, securities.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including comments regarding the expectation that the Company will redeem the remaining $44.37 million of Original Debentures in cash and other statements that express management’s expectations or estimates of future developments, circumstances or results. Actual results may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in gold price, disruptions in U.S. and Canadian securities markets, and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied. Golden Star assumes no obligation to update this information. Please refer to the discussion of risk factors in our Form 10-K for the year ended December 31, 2011.
Facebook and Zynga (ZNGA) Shares Rally on Comments From Zuckerberg
NEW YORK, NY — (Marketwire) — 09/14/12 — Mobile advertising has been a major focus for the Social Media Industry as companies look to profit from the rapidly rising demand for mobile devices. According to data from StatCounter Inc. mobile devices represent more than 10 percent of all internet traffic, a sharp increase from the 4 percent in January 2011. The Paragon Report examines investing opportunities in the Social Media Industry and provides equity research on Facebook Inc. (NASDAQ: FB) and Zynga Inc. (NASDAQ: ZNGA).
Access to the full company reports can be found at:
www.ParagonReport.com/FB
www.ParagonReport.com/ZNGA
Digital marketing and media research firm eMarketer predicts that U.S. mobile advertising revenues will experience rapid growth in the coming years. The research group has projected that U.S. mobile advertising revenues to more than quadruple from the $1.45 billion seen in 2011 to $6.62 billion in 2014, and to be worth nearly $12 billion by 2016. According to eMarketer Twitter CEO Dick Costolo has stated that “on most days” more ad revenues are generated through mobile platforms than their website.
Paragon Report releases regular market updates on the Social Media Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.
Shares of Facebook surged nearly 8 percent Wednesday after comments made by CEO Mark Zuckerberg at recent conference provided a positive outlook. “Now we are a mobile company,” said Zuckerberg. “Over the next three to five years I think the biggest question that is on everyone’s minds, that will determine our performance over that period, is really how well we do with mobile.”
Shares of Zynga also received a boost Wednesday gaining over 10 percent after Zuckerberg gave the company a positive endorsement. “Zynga’s had a rough few quarters. They’re basically a strong company,” he said, according to recent AllThingsD article. “Other companies, like King.com and Kixeye, have gained share. We have 200 million people playing games monthly. That’s real.”
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.paragonreport.com/disclaimer
Sutor Technology Group (SUTR) Limited Reports Fiscal Year 2012 Financial Results
CHANGSHU, China, Sept. 14, 2012 /PRNewswire-FirstCall/ — Sutor Technology Group Limited (the “Company” or “Sutor”) (Nasdaq: SUTR), a leading China-based manufacturer and distributor of high-end fine finished steel products and welded steel pipes used by a variety of downstream applications, today announced its financial results for the fiscal year ended June 30, 2012.
Fiscal year 2012 results highlights:
|
FY2012 |
FY2011 |
Change |
|
|
Revenues (million): |
$531.6 |
$431.7 |
23.1% |
|
Gross profit (million) |
$41.7 |
$40.5 |
3.0% |
|
Net income (million) |
$12.1 |
$14.6 |
-17.1% |
|
EPS |
$0.30 |
$0.36 |
-16.7% |
For the fiscal 2012 fourth quarter, Sutor generated revenue of approximately $183.6 million, net income of $3.3 million and EPS of $0.08. Sutor’s fiscal 2012 fourth quarter results significantly improved over its fiscal 2012 third quarter results where it generated revenue, net income and EPS of $109.9 million, $1.2 million and $0.03, respectively. The substantial sequential quarterly improvement demonstrates the Company’s strengths and resilience during difficult economic times when the Chinese and global economies have experienced high volatility and undergone significant changes. We believe Sutor’s business will continue to remain strong and competitive because our products are used in a variety of sectors such as construction, infrastructure, household appliances, solar water heaters, information technology and medical instruments. We aim to further diversify our customer base and better position our Company to take advantage of the growing demand for our products.
We are in the process of completing the construction of our new 500,000 metric-ton (MT) cold-rolled production line. We expect this line to be completed and begin initial production in fiscal year 2013. At full capacity and demand, this new line could generate more than $300 million in external sales revenue at today’s prices. However, as part of Sutor’s integrated production process, a large portion of the production will be used internally to create additional value added products, with the goal of improving our profitability. Currently, Sutor has 500,000 MT of annual acid-pickled capacity, 250,000 MT of cold-rolled capacity, 700,000 MT of hot-dip galvanization capacity as well as additional pre-painted galvanized steel and steel pipe production capacity. Therefore, we believe the addition of the new 500,000 MT of cold-rolled capacity will further optimize the Company’s integrated production facilities.
During fiscal 2012 fourth quarter, we repurchased 105,455 shares of the Company’s common stock. As of August 31, 2012, we have bought back an aggregate of 590,838 shares of common stock at the average buyback price of approximately $1.10 per share. We intend to continue to buy back our stock.
Ms. Lifang Chen, Chairwoman and CEO of Sutor, commented, “We are pleased that despite the challenging economic conditions in China and abroad, we generated record revenue and have continued to grow our business by developing new products, increasing our customer base, and by establishing a joint venture, and therefore positioned our Company well for sustainable growth in fiscal 2013 and beyond.”
Ms. Chen concluded, “We believe our stock is extremely undervalued. Although factors like investors’ sentiment and macro-economic conditions are beyond our control, we are doing everything we can as a public company to restore investor confidence. We have taken steps to strengthen our internal control procedures, engaged a top five globally-ranked audit firm, maintained a complete Board of Directors of both U.S. and Chinese experts, retained a reputable U.S. law firm as our legal counsel, and hired a U.S. based IR firm to improve shareholder communications. We encourage investors to visit our website for additional corporate news and to learn more about our Company. We’ll continue to explore all options to protect and maximize shareholder value.”
Fiscal Year 2012 Results
Revenue. For the fiscal year ended June 30, 2012, revenue was $531.6 million compared to $431.7 million last year, an increase of approximately 23.1% due to increased sales volume. Total sales volume in metric tons increased approximately 18.0% in fiscal year 2012 as compared to fiscal 2011, which reflected higher capacity utilization of our production facilities. Production of hot-dip galvanized steel was up 31.1% in fiscal 2012 as compared to fiscal 2011 due to growing market demand for these products. Although lately investments in construction and infrastructure in China have slowed down, other sectors of the Chinese economy grew from fiscal 2011 to 2012 due to significant growth in the durable product replacement markets, demographic changes and urbanization trends in China which, we believe, create long-term and relatively stable demand for Sutor’s fine finished steel products.
On a geographic basis, revenue generated from customers based outside of China was $60.1 million, or 11.3% of total revenue, for fiscal year 2012, as compared to $62.2 million, or 14.4% of total revenue, for fiscal year 2011. The decrease was mainly attributable to overall weak global economies which reduced near-term demand for our fine finished steel products.
Gross profit and gross margin. Gross profit increased $1.2 million to $41.7 million in fiscal year 2012 from $40.5 million in fiscal year 2011. Gross margin was approximately 7.8% in fiscal year 2012, as compared to 9.4% in fiscal year 2011. The decrease in gross margin was mainly due to changes in the mix of products sold in fiscal 2012. In fiscal 2012, we sold more acid-pickled steel but less pre-painted galvanized steel. Acid-pickled steel has a lower gross margin than pre-painted galvanized steel. In addition, gross margin was affected by lower exports sales in fiscal 2012 as compared to fiscal 2011. Of note, gross margin for our exported products was approximately 13.3% as compared to approximately 7.3% for our domestic sales.
Total operating expenses. Our total operating expenses increased $2.7 million to $18.0 million in fiscal year 2012 from $15.3 million in fiscal year 2011. As a percentage of revenue, our total operating expenses decreased to 3.3% in fiscal year 2012 from 3.5% in fiscal year 2011 as the increase in revenue outpaced the increase in total operating expenses due to operating leverage.
Selling expenses. Our selling expenses decreased $0.3 million to $7.2 million in fiscal year 2012 from $7.5 million in fiscal year 2011. As a percentage of revenue, our selling expenses were 1.3% in fiscal 2012 as compared to 1.7% in fiscal 2011. The decrease in selling expenses was primarily due to lower international sales and our effective cost control measures.
General and administrative expenses. General and administrative expenses increased $3.0 million to $10.8 million, or 2.0% of revenue, in fiscal year 2012, as compared to $7.8 million, or 1.8% of revenue, in fiscal year 2011. The increase was partially due to a number of factors including higher employee benefits of $0.8 million, higher building maintenance and repair expense of $0.2 million, and higher allowance for bad account receivables of $0.2 million, than those occurred last fiscal year.
Interest expense. Our interest expense increased $5.3 million to $13.3 million in fiscal 2012 from $8.0 million in fiscal 2011. As a percentage of revenue, our interest expense increased to 2.5% in fiscal 2012, from 1.8% in fiscal 2011. The increase in interest expense was mainly attributable to higher average principal amount of bank loans as well as higher discounted interest expenses on bank notes.
Provision for income taxes. We incurred income tax expense of $1.0 million in fiscal 2012 as compared to $3.4 million in fiscal 2011. The reduced income tax expense was primarily due to an income tax refund of approximately $2.1 million for purchasing certain equipment.
Net income. Net income, excluding a foreign currency translation adjustment, decreased $2.5 million, or approximately 17.1%, to $12.1 million in fiscal year 2012, from $14.6 million in fiscal year 2011, as a cumulative result of the above factors.
Financial Condition and Liquidity
As of June 30, 2012, we had approximately $9.5 million in cash and $111.6 million in restricted cash. Our short-term loans were approximately $139.0 million. We also had approximately $8.5 million long-term loans. As of June 30, 2012, the Company had an unused line of credit with banks of approximately $31.7 million.
For fiscal 2013, we estimate capital expenditures will be approximately $15 million consisting of approximately $7 million to be used for the completion of the construction of the 500,000 MT cold-rolled production line and $8 million for facility upgrades and technical innovation. Under normal operating conditions, we believe we can fund the planned capital expenditure through internally generated cash flows.
Conference Call Information
Sutor’s management will host an earnings conference call today, September 14, 2012, at 9:00 a.m. U.S. Eastern time/9:00 p.m. Beijing/Hong Kong time. Listeners may access the call by dialing US: +1 877 847 0047, CN: 800 876 5011, HK +852 3006 8101, access code: SUTR. A recording of the call will be available shortly after the call through October 14, 2012. Listeners may access it by dialing US: +1 866 572 7808, CN: 800 876 5013, HK: +852 3012 8000, access code: 681088.
Functional Currency and Translating Press Release
The functional currency of the Company is the Chinese Yuan Renminbi (“RMB”); however, the accompanying financial information has been expressed in United States Dollars (“USD”). The accompanying consolidated balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. The accompanying consolidated statements of operations and cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. Transactions in the Company’s equity securities have been recorded at the exchange rate existing at the time of the transaction.
About Sutor Technology Group Limited
Sutor is one of the leading China-based manufacturers and distributors of high-end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com/en/index.php.
Forward-Looking Statements
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance, liquidity and strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended June 30, 2012, and other risks mentioned in our other reports filed with the Securities Exchange Commission (“SEC”). Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words “believe,” “expect,” “anticipate,” “project,” “targets,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For more information, please contact:
|
China |
US |
|||
Financial Tables Below:
|
SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES |
||||
|
CONSOLIDATED BALANCE SHEETS
|
||||
|
June 30, |
June 30, |
|||
|
2012 |
2011 |
|||
|
Audited |
Audited |
|||
|
ASSETS |
||||
|
Current Assets: |
||||
|
Cash and cash equivalents |
$ |
9,530,531 |
$ |
21,324,931 |
|
Restricted cash |
111,582,149 |
72,326,482 |
||
|
Short-term investments |
4,849,112 |
– |
||
|
Trade accounts receivable, net of allowance for doubtful accounts of |
7,023,880 |
3,969,090 |
||
|
Notes receivable |
475,112 |
168,029 |
||
|
Other receivables and prepayments, net of allowance for doubtful |
4,275,817 |
2,004,044 |
||
|
Advances to suppliers, unrelated parties, net of allowance for |
27,446,626 |
42,067,716 |
||
|
Advances to suppliers, related parties, net of allowance for doubtful |
121,884,833 |
116,772,842 |
||
|
Inventories, net |
50,432,279 |
46,197,179 |
||
|
Deferred tax assets |
709,688 |
363,497 |
||
|
Total Current Assets |
338,210,027 |
305,193,810 |
||
|
Non-current Assets: |
||||
|
Advances for purchase of long term assets |
15,001,088 |
81,191 |
||
|
Property, plant and equipment, net |
77,231,273 |
79,103,131 |
||
|
Intangible assets, net |
3,082,877 |
3,083,569 |
||
|
Total Non-current Assets |
95,315,238 |
82,267,891 |
||
|
TOTAL ASSETS |
$ |
433,525,265 |
$ |
387,461,701 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||
|
Current Liabilities: |
||||
|
Short-term loans |
$ |
111,166,838 |
$ |
95,494,490 |
|
Long-term loans, current portion |
27,762,975 |
– |
||
|
Accounts payable |
57,079,617 |
55,674,454 |
||
|
Other payables and accrued expenses |
8,820,064 |
4,840,135 |
||
|
Other payables, related parties |
– |
594,105 |
||
|
Advances from customers |
7,924,812 |
11,737,085 |
||
|
Warrant liabilities |
47,404 |
399,572 |
||
|
Total Current Liabilities |
212,801,710 |
168,739,841 |
||
|
Long-Term Loans |
8,490,772 |
23,626,900 |
||
|
Total Liabilities |
221,292,482 |
192,366,741 |
||
|
Stockholders’ Equity |
||||
|
Undesignated preferred stock – $0.001 par value; 1,000,000 |
– |
– |
||
|
Common stock – $0.001 par value; authorized: 500,000,000 shares as of June 30, 2012 and |
40,805 |
40,745 |
||
|
Additional paid-in capital |
41,344,306 |
41,216,546 |
||
|
Statutory reserves |
18,100,361 |
15,662,039 |
||
|
Retained earnings |
117,732,738 |
108,106,069 |
||
|
Accumulated other comprehensive income |
35,622,241 |
30,069,561 |
||
|
Less: Treasury stock, at cost, 544,477 and nil shares as of June |
(607,668) |
– |
||
|
Total Stockholders’ Equity |
212,232,783 |
195,094,960 |
||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
433,525,265 |
$ |
387,461,701 |
|
SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES |
||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
|
AND COMPREHENSIVE INCOME
|
||||
|
For The Years Ended |
||||
|
June 30 |
||||
|
2012 |
2011 |
|||
|
Audited |
Audited |
|||
|
Revenue: |
||||
|
Revenue from unrelated parties |
$ |
375,947,830 |
$ |
266,126,597 |
|
Revenue from related parties |
155,675,893 |
165,569,921 |
||
|
531,623,723 |
431,696,518 |
|||
|
Cost of Revenue |
||||
|
Cost of revenue from unrelated parties |
(347,052,327) |
(240,847,808) |
||
|
Cost of revenue from related parties |
(142,848,128) |
(150,397,400) |
||
|
(489,900,455) |
(391,245,208) |
|||
|
Gross Profit |
41,723,268 |
40,451,310 |
||
|
Operating Expenses: |
||||
|
Selling expenses |
(7,236,095) |
(7,503,738) |
||
|
General and administrative expenses |
(10,781,178) |
(7,813,711) |
||
|
Total Operating Expenses |
(18,017,273) |
(15,317,449) |
||
|
Income from Operations |
23,705,995 |
25,133,861 |
||
|
Other Incomes/(Expenses): |
||||
|
Interest income |
2,831,798 |
901,511 |
||
|
Interest expense |
(13,317,274) |
(7,971,129) |
||
|
Changes in fair value of warrant liabilities |
352,168 |
607,331 |
||
|
Other income |
408,703 |
163,977 |
||
|
Other expense |
(918,090) |
(793,540) |
||
|
Total Other Incomes/(Expenses) |
(10,642,695) |
(7,091,850) |
||
|
Income Before Taxes |
13,063,300 |
18,042,011 |
||
|
Income tax expense |
(998,309) |
(3,429,507) |
||
|
Net Income |
$ |
12,064,991 |
$ |
14,612,504 |
|
Basic Earnings per Share |
$ |
0.30 |
$ |
0.36 |
|
Diluted Earnings per Share |
$ |
0.30 |
$ |
0.36 |
|
Basic Weighted Shares Outstanding |
40,533,158 |
40,726,123 |
||
|
Diluted Weighted Shares Outstanding |
40,533,158 |
40,726,123 |
||
|
Net Income |
$ |
12,064,991 |
$ |
14,612,504 |
|
Foreign currency translation adjustment |
5,552,680 |
10,537,629 |
||
|
Comprehensive Income |
$ |
17,617,671 |
$ |
25,150,133 |
|
SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
|
For The Years Ended |
||||
|
June 30 |
||||
|
2012 |
2011 |
|||
|
Cash Flows from Operating Activities: |
Audited |
Audited |
||
|
Net income |
$ |
12,064,991 |
$ |
14,612,504 |
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities |
||||
|
Depreciation and amortization |
8,623,056 |
7,684,071 |
||
|
(Reversal)/provision for doubtful accounts |
(30,366) |
457,110 |
||
|
Write downs of inventories |
25,015 |
– |
||
|
Stock-based compensation |
127,820 |
119,423 |
||
|
Foreign currency exchange gain |
(402,700) |
(48,495) |
||
|
Loss/(gain) on disposal of property, plant and equipment |
36,422 |
(4,481) |
||
|
Interest income from short-term investments carried at amortized cost |
(97,412) |
– |
||
|
Deferred income taxes |
(335,604) |
(16,086) |
||
|
Changes in fair value of warrant liabilities |
(352,168) |
(607,331) |
||
|
Changes in current assets and liabilities: |
||||
|
Restricted cash |
(16,778,737) |
(20,899,568) |
||
|
Trade accounts receivable |
(3,392,490) |
6,987,250 |
||
|
Notes receivable |
(301,319) |
(88,423) |
||
|
Other receivables and prepayments |
(2,022,785) |
(787,861) |
||
|
Advances to suppliers, unrelated parties |
15,660,580 |
(32,418,331) |
||
|
Advances to suppliers, related parties |
(2,051,343) |
(13,399,681) |
||
|
Inventories |
(3,149,913) |
(3,757,906) |
||
|
Accounts payable |
6,196,904 |
29,686,859 |
||
|
Other payables and accrued expenses |
3,999,210 |
(438,981) |
||
|
Other payables, related parties |
(604,544) |
217,267 |
||
|
Advances from customers |
(4,045,719) |
4,525,550 |
||
|
Net Cash Provided by/(Used In) Operating Activities |
13,168,898 |
(8,177,110) |
||
|
Cash Flows from Investing Activities: |
||||
|
Purchase of property, plant and equipment |
(25,868,522) |
(12,908,403) |
||
|
Proceeds from disposal of property, plant and equipment |
63,526 |
6,067 |
||
|
Purchase of short-term investments |
(4,722,996) |
– |
||
|
Net Cash Used In Investing Activities |
(30,527,992) |
(12,902,336) |
||
|
Cash Flows from Financing Activities: |
||||
|
Proceeds from loans |
155,351,324 |
149,159,704 |
||
|
Payments of loans |
(128,992,840) |
(120,718,568) |
||
|
Changes in restricted cash |
(20,545,678) |
– |
||
|
Payments on repurchase of common stock |
(607,668) |
– |
||
|
Net Cash Provided By Financing Activities |
5,205,138 |
28,441,136 |
||
|
Effect of Exchange Rate Changes on Cash |
359,556 |
626,505 |
||
|
Net Change in Cash and Cash Equivalents |
(11,794,400) |
7,988,195 |
||
|
Cash and Cash Equivalents at Beginning of Year |
21,324,931 |
13,336,736 |
||
|
Cash and Cash Equivalents at End of Year |
$ |
9,530,531 |
$ |
21,324,931 |
|
Supplemental Non-Cash Information: |
||||
|
Offset of notes payable to related parties against receivable from related parties |
$ |
10,437,344 |
$ |
10,051,691 |
|
Supplemental Cash Flow Information: |
||||
|
Cash paid during the year for interest expense |
$ |
(12,809,907) |
$ |
(7,441,918) |
|
Cash paid during the year for income tax |
$ |
(1,015,879) |
$ |
(2,118,597) |
SOURCE Sutor Technology Group Limited
Virco (VIRC) Announces Second Quarter Results
TORRANCE, Calif., Sept. 14, 2012 (GLOBE NEWSWIRE) — Virco Mfg. Corporation (Nasdaq:VIRC) today announced second quarter results in the following letter to stockholders from Robert A. Virtue, President and CEO:
While our second quarter revenues continue to reflect an uneven recovery in state and municipal funding for public schools, last year’s restructuring led to significantly improved financial results for the second quarter and first half of fiscal 2012 compared to the same periods in fiscal 2011.
Revenues for the second quarter declined 3.9% from $62,817,000 in the three months ended July 31, 2011 to $60,392,000 in the three months ended July 31, 2012. Revenues for the first half of the year declined 3.5% from $87,073,000 in the first six months ended July 31, 2011 to $84,060,000 for the first six months ended July 31, 2012. Despite these modest revenue declines, net operating efficiencies resulted in significantly improved financial results. Gross profit for the second quarter was up 15.0% from $19,882,000 in the three months ended July 31, 2011 to $22,867,000 in the three months ended July 31, 2012, while expenses were down 9%, from $17,107,000 in the three months ended July 31, 2011 to $15,608,000 in the three months ended July 31, 2012. For the first six months, gross profit was up 11.9% from $26,660,000 in the first six months ended July 31, 2011 to $29,834,000 in the first six months ended July 31, 2012. Expenses were down 6.4% from $29,257,000 in the first six months ended July 31, 2011 to $27,392,000 in the first six months ended July 31, 2012.
As a result of the improvement in net operating efficiencies, net income more than doubled (up 257%) from $2,732,000 in the three months ended July 31, 2011 to $7,053,000 in the three months ended July 31, 2012. Through six months ended July 31, 2012, we’ve earned net income of $2,220,000 compared to last year’s net loss of $2,668,000 for the six months ended July 31, 2011.
Here are our results for the second quarter and six months ended July 31, 2012, and the comparable periods last year:
Three Months Ended Six Months Ended
7/31/2012 7/31/2011 7/31/2012 7/31/2011
(In thousands, except share data)
Net sales $60,392 $62,817 $84,060 $87,073
Cost of sales 37,525 42,935 54,226 60,413
Gross profit 22,867 19,882 29,834 26,660
Selling, general administrative & other expense 15,608 17,107 27,392 29,257
Income (loss) before income taxes 7,259 2,775 2,442 (2,597)
Income tax expense 206 43 222 71
Net income (loss) $7,053 $2,732 $2,220 ($2,668)
Net income (loss) per share – basic (a) $0.49 $0.19 $0.15 ($0.19)
Weighted average shares outstanding – basic (a) 14,369 14,274 14,333 14,240
Weighted average shares outstanding – diluted 14,395 14,292 14,358 14,240
(a) Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares.
7/31/2012 1/31/2012 7/31/2011
Current assets $75,837 $45,808 $82,024
Non-current assets 46,810 48,417 49,802
Current liabilities 52,331 26,840 60,362
Non-current liabilities 36,870 36,489 24,202
Stockholders’ equity 33,446 30,896 47,262
As discussed more fully in our Annual Report on Form 10-K for fiscal 2011 (year ended January 31, 2012), last year we implemented a voluntary early retirement program to bring our cost structure back in line with revenues. When combined with normal attrition, this resulted in a 21% reduction in total headcount as we entered fiscal 2012. The reductions were primarily concentrated in manufacturing, and included both direct labor and indirect support positions.
This reduction in staffing supported a planned reduction in total inventories. At the end of the first quarter of this year, inventories were 22% lower than at the same date last year. However, because incoming orders were roughly even with the prior year, this meant that our factories had to be highly productive and flexible to meet the delivery dates and product mix of our second quarter backlog. It was a significant challenge, but our operations teams performed very well.
Using a combination of automation, overtime and temporary labor, factory output increased 18% in the second quarter of fiscal 2011, enabling us to simultaneously satisfy customer demand, maintain inventory discipline and cut operating expenses. At the end of July 2012, total inventories were $37,684,000 compared to $43,509,000 last year, a reduction of 13%.
During the current year, we have been operating in an environment of relatively stable commodity costs. Last year’s results were adversely affected by 25% spikes in two of our most important raw materials—steel and plastic resin—at the beginning of the second quarter of fiscal 2011. This year’s more stable costs have enabled us to retain the financial benefits of last year’s restructuring. The difference is most visible in the net income comparison for the second quarter, which bears the full weight of our seasonal business cycle.
During the last decade, many other manufacturers moved their operations offshore in an effort to reduce product costs. Over this same period, we elected instead to invest in automation, new products, and new service technologies rather than closing our domestic factories. We believe this approach may finally be yielding the financial performance benefits originally envisioned. Specifically, the shorter, better controlled supply chains of our own domestic factories allow us to offer a wider range of product choices with shorter lead times to support the rapidly-evolving environments of 21st Century campuses and classrooms. This responsiveness is further supported by our own direct sales and service force, which isn’t constrained by the short-term concerns and multiple linkages of extended supply chain/distribution models.
Our commitment to produce and deliver outstanding furniture and equipment starts with quality raw materials and includes rigorous regulatory compliance, careful craftsmanship, and dependable warranties. Manufacturers with extended supply chains can be tempted to point the finger and blame shortcomings on one or more links in the chain. At Virco, we take direct responsibility for our own tangible products as well as the less tangible but essential follow-through services.
Labor Day is the traditional end of our summer delivery season. In the four months of June though September, we usually ship more than half our total annual revenue. As this report was being written we had concluded a successful August that mirrored the improvements of the second quarter. Although we won’t report officially on August until our third quarter report in December 2012, it seems appropriate during this crucial turnaround year to give stockholders a sense of how the summer’s results influence our thinking about the future.
First, we caution that publicly-funded entities continue to suffer serious budget challenges. Reduced tax revenues and structural spending deficits have proven difficult to correct, with the result that many of our largest and most stable public school customers have been forced to reduce their day-to-day expenditures for replacement furniture. As noted in several of our recent Annual Reports, this reduction has been partially offset by highly localized pockets of strength in bond-funded new school construction and the international sector. Despite these shifts in composition, our order rates through late summer 2012 have remained roughly even with order rates over the same period in 2011. We certainly hope this stability will persist through fiscal 2012, but given the many uncertainties of public funding, we can’t guarantee it.
Second, this year’s stable raw material costs may not be permanent. Along with increased volatility in our own order cycle, the last few years have been marked by unusual volatility in the cost (and supply) of raw materials. Whether or not this volatility was a consequence of the uneven balancing-out of the global supply chain, or whether it’s the ‘new normal,’ we can’t say.
Third, the restructuring expenses in last year’s third and fourth quarters won’t be repeated this year. We therefore believe our year-to-date operating efficiencies as reflected in the first half results should now be relatively fixed. We remind stockholders, however, that due to the intense seasonality of our business, the lower revenues in our first and fourth quarters typically generate operating losses for those periods, so straight-line extrapolations of year-to-date results may be misleading.
Given these cautions, we believe we are well positioned for the foreseeable future. As the risk of extended supply chains become more evident to suppliers and customers alike, our modern but almost-fully-depreciated domestic factories seem likely to offer consistent advantages in quality, choice, and reliability. We intend to emphasize and profit from these advantages as we work with educators to equip the learning environments of the future.
The Virco Mfg. Corporation Logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=521
This news release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding: business strategies; market demand and product development; economic conditions; the educational furniture industry; international markets; product sourcing; raw material costs; state and municipal bond funding; order rates; operating efficiencies; supply chains; the Company’s domestic factors; and seasonality. Forward-looking statements are based on current expectations and beliefs about future events or circumstances, and you should not place undue reliance on these statements. Such statements involve known and unknown risks, uncertainties, assumptions and other factors, many of which are out of our control and difficult to forecast. These factors may cause actual results to differ materially from those which are anticipated. Such factors include, but are not limited to: changes in general economic conditions including raw material, energy and freight costs; state and municipal bond funding; state, local and municipal tax receipts; the seasonality of our markets; the markets for school and office furniture generally; the specific markets and customers with which we conduct our principal business; and the competitive landscape, including responses of our competitors to changes in our prices. See our Annual Report on Form 10-K for the year ended January 31, 2012, and other materials filed with the Securities and Exchange Commission for a further description of these and other risks and uncertainties applicable to our business. We assume no, and hereby disclaim any, obligation to update any of our forward-looking statements. We nonetheless reserve the right to make such updates from time to time by press release, periodic reports or other methods of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements which are not addressed by such an update remain correct or create an obligation to provide any other updates.
CONTACT: Robert A. Virtue, President
Douglas A. Virtue, Executive Vice President
Robert E. Dose, Vice President Finance
Virco Mfg. Corporation
(310) 533-0474
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