Asset sale is complete. GUMM finally has a little money in their pockets, a profitable quarter and year, and is no longer losing money manufacturing gum.
Also a new shareholder (WGY) in town.
siliconinvestor.com
Gum Tech International, Inc. Completes Asset Sale to Wrigley Company
PHOENIX, Jul 20, 2001 /PRNewswire via COMTEX/ -- Gum Tech International, Inc., (Nasdaq: GUMM chart, msgs) announced that it completed today its previously announced sale of its chewing gum and related confectionery product assets to the Wm. Wrigley Jr. Company. On Thursday, July 19, 2001, the asset sale was approved by 98% of the votes cast by Gum Tech's shareholders at a special meeting of the Company's shareholders.
Pursuant to its agreement with Wrigley, Gum Tech will receive $25 million in cash for the assets. In addition, the Wrigley Company purchased 200,000 shares of Gum Tech's common stock at a price of approximately $7.50 per share. Gum Tech and Wrigley have also entered into royalty agreements providing for royalty payments to Gum Tech based on future sales of certain gum products for a fixed period of time if such products are developed and marketed by the Wrigley Company.
Gum Tech will continue to retain all of its rights and obligations related to the Company's 60% ownership of Gel Tech, LLC, a joint venture between Gum Tech and Zensano, Inc., and its 49% interest in its joint venture with Swedish Match AB for non-tobacco nicotine products.
At Thursday's Special Shareholders Meeting, Gum Tech announced that it expects to use the proceeds from the asset sale to enhance its marketing and promotional efforts with respect to its Zicam(TM) products, pursue other potential opportunities in the market for innovative nutrient and drug delivery systems, or provide financial support, if necessary, to the Company's joint ventures with Zensano, Inc. and Swedish Match AB.
Gum Tech International, Inc. is an innovative nutrient and drug delivery technology company engaged in the development, manufacture and marketing of delivery systems for bioactive compounds. Gum Tech is the majority owner of Gel Tech LLC that markets Zicam(TM) Cold Remedy, a patented, revolutionary homeopathic remedy, and Zicam(TM) Allergy Relief, a homeopathic remedy designed to provide relief to allergy sufferers. In a study published in the October 2000 issue of the ENT - Ear, Nose & Throat Journal, Zicam(TM) Cold Remedy was shown to reduce the duration of the common cold by an average of 75% when taken at the onset of symptoms. |
