CCSI Sets Deadline for Board Review of Financing Proposals
NEW YORK, March 23 /PRNewswire/ -- Chromatics Color Sciences International, Inc. (Nasdaq: CCSI - news) announced today that it is currently lacking funds to continue material aspects of the Company's operations and business plan, including funds and necessary personnel to complete R&D on its new LED instrument and technology recently required during its first mass manufacturing process; complete filings, administration and maintenance for certain intellectual properties and regulatory requirements; supply upgraded products and sales support to its medical distributor; and complete FDA regulatory filings for upgrades to its medical products.
Additionally, a CCSI subsidiary has been notified of a default on payment due for an approximately $3,000,000 loan, in addition to acceleration of the maturity date of that loan. The Company is currently downsizing its corporate offices and the Board of Directors is reviewing potential proposals for financing the Company, along with contingency plans in the event such financing cannot be completed. The Board of Directors voted this week to review proposals, including financings, submitted to the Board (or requests for extensions from any interested investors) no later than 4:00 pm, March 23, 2001.
Chromatics Color Sciences is in the business of color science and has developed technologies and intellectual properties in this field. The Company has received clearance from the Food and Drug Administration (FDA) for the commercial use of its medical device for the non-invasive monitoring of hyperbilirubinemia in newborn infants by healthcare professionals in hospitals, clinics, pediatrician offices and the home environment. The Company believes its technologies and intellectual properties may also have medical applications in the detection and monitoring of other chromogenic diseases which the Company defines as those diagnosed or monitored by the coloration of the human skin, tissue or fluid being affected. Medical application, in addition to the non-invasive monitoring of hyperbilirubinemia in newborns, will require clinical trials and FDA clearances for commercial use.
The Company's technologies and intellectual properties also have other applications including the scientific color measurement and classification of human skin and certain color-sensitive consumer products, and in determining the color compatibility of such skin and product color classification for use in a variety of industries including the cosmetic, beauty-aid and fashion industries.
Certain of the matters discussed in this announcement contain forward-looking statements that involve material risks to and uncertainties in the Company's business that may cause actual results to differ materially from those anticipated by the statements made herein. Such risks and uncertainties include, among other things, the availability of any needed financing, the Company's ability to implement its long range business plan for various applications for its technologies, the Company's ability to enter into agreements with additional marketing and distribution partners, the impact of competition, the obtaining and maintaining of any necessary regulatory clearances applicable to applications of the Company's technology, management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including those set forth in its annual report on Form 10-K for the year ended December 31, 1999 and on Form 10-Q for the quarter ended September 30, 2000.
SOURCE: Chromatics Color Sciences International, Inc. |
