MIDVALE, Utah--(BUSINESS WIRE)--June 27, 2000--Wasatch
Pharmaceutical, Inc. (OTC BB: WSPH.O), a leader in the research,
development and distribution of dermatological treatments for skin
disorders, today issued the following explanation in response to
shareholder inquiries concerning the Company's issuance of warrants in
conjunction with its reverse stock split.
Each shareholder will receive "A" and "B" Warrants for shares of
common stock currently owned. The number of warrants received will
equal the number of common shares held, and be distributed equally
between "A" and "B" warrants. "A" Warrants are exercisable at $0.50
and "B" Warrants are exercisable at $2.00.
The Company intends to file a registration of the warrants with
the Securities and Exchange Commission (SEC) within the next 90 days.
Stock will continue to trade with a warrant due bill until the
registration has been deemed effective. Warrant due bills are
promissory notes to shareholders through which their warrants are
secured.
Until the SEC approves the effective date of registration, all
common shares will trade with warrant due bills. Once the SEC approves
the effective date of registration, the common shares and the warrants
will no longer be tied together, and each will trade independently.
The Company expects an effective registration date on or around
September 1, 2000.
Gary V. Heesch, Wasatch chief executive officer, explained, "A
person owning 1,000 shares on June 21, 2000 now owns 500 shares, as of
June 22, 2000. This same person will also own 250 "A" Warrants,
exercisable at $0.50, and 250 "B" Warrants, exercisable at $2.00. An
individual who buys stock after June 22 will be due an equal number of
warrants after the registration filing."
The registration will allow the shareholder to exercise the
warrants within a specific period of time and at the specific price
designated per share. These exercise details will be released once the
registration is approved by the SEC.
Wasatch plans to release an update of significant recent
developments later this week.
Wasatch Pharmaceutical, Inc. is a leading research and development
entity in the field of dermatology. The Company plans to establish a
chain of 350 treatment clinics nationwide over the next 60 months. The
Company anticipates the treatment clinics, coupled with an innovative
Internet Marketing Plan, should generate revenues of more than $525
million by fiscal year 2005, the target date for completion of the
centers.
Forward-looking statements in this release are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including, without
limitation, continued acceptance of the Company's products, increased
levels of competition, new products introduced by competitors, changes
in the rates of subscriber acquisition and retention, and other risks
detailed from time to time in the Company's periodic reports filed
with the Securities and Exchange Commission.
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