HemaSure Inc. (ticker: HMSR, exchange: OTC Bulletin Board) News Release - Thursday, October 07,
1999
HemaSure Inc. Announces Partner COBE Laboratories To Purchase
Additional $3 Million of HemaSure Stock
COBE Exercises Option From May 1999 $9 Million Private Placement Financing
MARLBOROUGH, Mass., Oct. 7 /PRNewswire/ -- HemaSure Inc. (OTC Bulletin Board: HMSR), a
developer and supplier of blood filtration technologies, announced today that COBE Laboratories,
Inc. (COBE) has exercised an option to purchase $3 million of HemaSure common stock as part
of its May 1999 private placement agreement with the Company. The private placement
agreement with COBE provided for an initial investment of $9 million in exchange for 4.5 million
shares of HemaSure's common stock. The agreement also provided COBE with the option to
purchase an additional $3 million of HemaSure common stock at any time between August 3,
1999 and May 3, 2000 at market prices. COBE is wholly owned by Gambro AB (Stockholm Stock
Exchange: GAMBaST, GAMBbST), a manufacturer and provider of medical devices and services
throughout the world.
In accordance with the agreement, COBE will purchase 498,355 shares at a price of $6.02 per
share. The price and number of issued shares reflects the average price of HemaSure stock in
the 30 days prior to the exercise date of October 5, 1999.
Stated HemaSure President and Chief Executive Officer Jack McGuire, "We are very pleased that
COBE Laboratories, one of the world's leading manufacturers of automated blood component
collection systems, continues to demonstrate such confidence in HemaSure. We believe that
COBE's decision to make this significant additional investment in HemaSure is further validation
of the strength of our technology and the continuing success of our growth strategy."
"We are excited to have begun to ship products to customers in the U.S. and Europe through our
distribution agreement with COBE as well as to the American Red Cross through our supply
agreement with that nationally recognized organization. This new capital received from COBE
should help support the scale up of manufacturing to meet customer demand," concluded
McGuire.
Stated Ed Wood, President of COBE BCT, Inc., a wholly owned operating subsidiary of COBE,
"Our increased investment reflects both the high quality of the r\LS filter system produced by
HemaSure as well as the tremendous growth in worldwide market demand for leukoreduced
blood products. By integrating technologies such as the COBE Trima Automated Blood Collection
System and the r\LS system, COBE is able to offer a superior red blood cell filtration product and
better capitalize on the rapidly growing global trend toward 100% leukoreduction."
In connection with the May 1999 financing agreement, HemaSure completed an Amended and
Restated Exclusive Distribution Agreement with COBE. The amended distribution agreement
expanded the territory in which COBE distributes the Company's products to make it worldwide,
excluding sales to the American Red Cross. There is also a provision allowing for the
development of additional HemaSure products to be incorporated by COBE into that company's
product catalogue.
COBE BCT, Inc., based in Lakewood, Colorado, is a leading manufacturer of devices used by
blood banks and hospitals for the collection and separation of blood components and in
numerous therapies involving the collection, separation and processing of blood components.
HemaSure Inc. develops and delivers innovative filtration technologies designed to help meet
today's increasing demand for a safer, more reliable blood supply. Based in Marlborough,
Massachusetts, the Company's blood filtration technologies are designed to reduce to trace
levels virus-carrying leukocytes in donated blood. HemaSure has developed its next-generation
r\LS Red Blood Cell Filtration System to provide high-volume, centralized, pre-storage
leukoreduction in blood centers.
Any statements contained herein that are not historical facts are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and
uncertainties. Potential factors could cause actual results to differ materially from those
expressed or implied by such statements. These statements include, but are not limited to, those
relating to the Company's product development, distribution and financing agreement with COBE.
Information on the potential factors that could affect the Company's actual results of operations
are included in its filings with the Securities and Exchange Commission, including but not limited
to its Annual Report on Form 10-K for the fiscal year ended December 31, 1998.
Contact: James B. Murphy, Senior Vice President, Finance and Administration of HemaSure Inc.,
508-490-9500
SOURCE HemaSure Inc. |
