BioPulse puts off call to shareholders
signonsandiego.com
By Bruce V. Bigelow and Penni Crabtree
STAFF WRITERS
February 22, 2001
After BioPulse's landlord asked for a letter of credit, the company called off
plans to move to 8940 Kenamar Drive. Union-Tribune
The price of shares in BioPulse International fell to a low of $2.25 yesterday,
as the San Diego company postponed a conference call with its shareholders
for the second time in two weeks.
BioPulse has come under increasing scrutiny for the controversial cancer
therapies it offered at a Tijuana clinic.
After Mexican authorities ordered the BioPulse clinic to cease its experimental
"alternative" therapies on cancer patients last week, BioPulse said it was
selling its interests in the clinic.
The company also announced that it's changing its name to California
BioScience.
The name change was not evident, however, in a statement that BioPulse
issued to shareholders after the market closed yesterday.
"Because of Dr. Reid Jilek's business travel in Europe," BioPulse said,
"today's conference call will occur at a later date." The company said
yesterday's conference call, which had been rescheduled from Feb. 15, was
intended to address "significant corporate developments."
Jilek was named BioPulse's new chairman and CEO on Tuesday. BioPulse
President Loran Swensen, who apparently issued yesterday's statement, did
not return calls seeking comment.
In over-the-counter trading yesterday, BioPulse shares fell by 75 cents to
close at $2.25. The company's stock began trading on Nov. 21 -- and soared
within a few weeks to a peak of $11.63 on Dec. 6.
Last week, the Federal Trade Commission started an inquiry of the
company's advertising practices. Some medical experts dismiss BioPulse's
alternative cancer therapies, which include using insulin to induce comas in
patients, as useless and potentially risky.
In its statement yesterday, BioPulse alluded to recent media coverage, saying
"the focus on the clinics has detracted from the overall business objectives of
BioPulse."
Yet unforeseen developments may be outpacing the company's plans.
In news releases issued on Feb. 7 and Feb. 13, for example, BioPulse said it
was moving to a new 17,000-square-foot headquarters at 8940 Kenamar
Drive in San Diego, where the company would expand its cancer vaccine
production capability to accommodate its backlog of orders.
BioPulse recently relocated to San Diego from the Salt Lake City area.
But a San Diego commercial real estate broker said yesterday that the deal
has fallen through.
Dean Asaro of CB Richard Ellis said BioPulse withdrew from lease
negotiations after the landlord asked the company to provide a letter of credit,
which he characterized as "some additional security."
The writers can be reached by e-mail at financial@uniontrib.com or by phone
at (619) 299-3131. |
