Paracelsian Announces Additional Investment by BioSignia and
Adjustment of Warrant Terms
ITHACA, N.Y., June 20 /PRNewswire/ -- Paracelsian, Inc. (OTC Bulletin Board: PRLN - news) ITHACA, N.Y., announced today thatBioSignia, Inc. has agreed to convert $500,000 of current debt into additional equity of Paracelsian. In addition, Paracelsian announced that the current exercise price of $3.25 for the Redeemable Common Stock Purchase Public Warrants will be lowered to $.50 per share, effective
immediately, and any unexercised warrants will be allowed to expire on September 7, 2000.
BioSignia, Inc., a corporation in Chapel Hill, North Carolina, is Paracelsian's largest shareholder, owning 5,713,565 or 28% of the outstanding common stock of Paracelsian. Since the last quarter of 1999, BioSignia has advanced interim funds to Paracelsian for working capital purposes. These advances have been structured as short-term debt. At a Paracelsian Board of Director's meeting on June 19, 2000, BioSignia, Inc. proposed to convert $500,000 of this debt into common stock of Paracelsian. The Board of Directors of Paracelsian, by unanimous vote, approved of the conversion of BioSignia's debt to equity. The newly issued shares will be restricted for one year.
``After much deliberation, BioSignia has decided to make an additional equity investment in Paracelsian,'' commented Dr. Timothy J. Smith, BioSignia's CEO & President. ``This was a difficult decision for us because our own capital needs are growing rapidly; nevertheless, we decided this additional investment in Paracelsian would benefit BioSignia shareholders significantly,'' continued Dr. Smith. ``We believe that the acceptance of Paracelsian's Dioxin assay by Kubota represents a major turning point in Paracelsian's path to profitability,'' concluded Dr. Smith.
``BioSignia's interim funding has given Paracelsian the necessary breathing room to enable the Company to position itself in the marketplace and
to establish a plan for financial independence,'' said Dr. T. Colin Campbell, Paracelsian's CEO and President. ``And now, the additional equity commitment by BioSignia is a strong indication of BioSignia's confidence in the future of Paracelsian -- this vote of confidence should be helpful
to Paracelsian in its quest for additional capital,'' concluded Dr. Campbell.
Paracelsian also announced a major adjustment in the exercise price of its publicly traded warrants. As of June 1, 2000, Paracelsian had 20,848,440 shares of Common Stock and 1,736,870 Redeemable Common Stock Purchase Warrants outstanding. The Warrants had entitled the holder to purchase an additional share of common stock at $3.25 per share, and had been scheduled to expire on September 7, 2000.
``The Board of Directors today approved of lowering the exercise price on the warrants to $.50 per share,'' said Board member Dr. Hira Gurtoo. ``The Board further agreed that the expiration date of September 7, 2000 will not be extended,'' continued Dr. Gurtoo. ``Additionally, warrants to purchase 350,000 shares issued in connection with a private placement in 1999 will likewise be adjusted to reflect an exercise price of $.50 and an expiration date of September 7, 2000,'' concluded Dr. Gurtoo.
Current warrants holders should contact the Secretary of the Corporation at (607) 257-4224 for further details.
Notice: This news release may contain forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including but not limited to, the results of research and development efforts, the effect of regulation by the United States Food and Drug Administration and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission.
No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements.
SOURCE: Paracelsian, Inc. |
