FEMQ ---News out.......
Feminique Corporation Enters Into Licensing Agreement
BELLPORT, N.Y., May 9, 2000 /PRNewswire via COMTEX/ -- Feminique Corporation
(OTC Bulletin Board: FEMQ) ("Company"), announced today that it has entered into
a Licensing Agreement with Clay Park Labs, Inc. and their associated company,
Clay Park Health Products, Inc. ("CPL"). CPL had been the primary supplier of
raw and finished material to the Company's Quality Health Products, Inc. unit
("QHP"). The Agreement is for an initial term of six (6) months with automatic
renewal for an additional term ending December 31, 2005, notwithstanding CPL's
option to cancel the Agreement earlier, and gives CPL the right to manufacture
and sell QHP's over-the-counter women's health branded products. As long as the
Agreement is in force, the Company will receive a royalty based on net sales of
the branded products. In addition, the Company is negotiating with CPL and LRC
North America, Inc. ("LRC"), the former owner of the brands, the ultimate sale
of QHP's branded assets. In the event that a sale is consummated, it is
envisaged that the proceeds of such a sale will remove approximately $2 million
of loan obligations from the Company's balance sheet, with no further royalty
payments due the Company.
Newly re-elected Acting President and CEO, Mr. Jonathan Rosen, stated: "As a
result of the Company's lack of working capital, and the Company's inability to
keep up with its customers' demands for product, it became imperative to search
for a way to keep the brands alive by continuing to ship customer orders, while
addressing the issue of the Company's inability to pay its major supplier as
well as servicing its existing loan obligation to LRC, which obligation arose as
a result of the original purchase by the Company of these brands.
"In my last Press Release, I warned shareholders of the uncertain future
surrounding the Company's ownership of its branded assets. It is management's
opinion that the interests of shareholders are best served by a deal such as
this, as an alternative to losing the customer base and risk destroying the
integrity of the brands, and still be left with a continuing cash liability that
the Company would be unable to pay. Although the Company still maintains its
intellectual property rights to the DBD/Mitolactol cancer drug, which has not
yet been developed or been granted FDA approval for sale to the public, the
Company's operations are, at this point, essentially limited to winding down its
previous lines of business. While there can be no assurance of success, it is
the intention of present management to bring new funding to the Company and to
alter its business model to that of a business "incubator", and investor in
other commercial opportunities. However, further clean-up actions will be
necessary before new assets can be placed into the Company. I will continue to
keep shareholders informed."
This Press Release contains forward-looking statements within the meaning of
Section 21A of the Securities Exchange Act of 1934, as amended, and are subject
to the safe harbors created thereby. Actual results could differ materially from
those projected in the forward-looking statements.
SOURCE Feminique Corporation
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