How about Michael Bloomberg, candidate for mayor of New York? Take special note of the ACE spokeswoman's denial of VLPI's statements.
Vital Living Rises on Anthrax Test, Despite Red Ink (Update3)
By David Evans
Matthews, North Carolina, Oct. 23 (Bloomberg) -- Vital Living Products Inc., which makes water treatment and testing products, has lost money every year since it was founded in 1990 and was overdrawn at the bank by $59,911 on June 30.
Yet the company's shares soared as much as 40-fold this month after the company said it would begin shipping a home test kit for anthrax before Thanksgiving. The shares fell 27 cents to $1.50 in trading of 9.4 million shares, after reaching $2.03. The stock has moved up from 5 cents on Oct. 1.
The company said the new product ``will allow anyone to test air, surfaces and water'' for the presence of anthrax spores.
Vital Living held a New York news conference to announce details of the kit, which is to sell for between $19.95 and $24.95. Yesterday, the company said Ace Hardware Corp., whose stores are independently owned, agreed to carry the kits in its 5,100 stores across the United States.
Not true, said Ace spokeswoman Paula Erickson. In an interview today, she said the chain is just reviewing the product.
``We are awaiting further information, including from government agencies, regarding their position on the test kits,'' she said. ``Until we learn more, the order will not be placed.''
Experts Concerned
Health experts expressed concern about possible hazards in using the kits. When the presence of anthrax is suspected, they say, people should leave the area and call the police.
``There's a uniform recommendation to avoid contact with anthrax,'' said Paul Krogstad, M.D., associate professor of pediatrics and a member of the Bioterrorism Task Force at UCLA Medical School. ``It gives me great concern that they are marketing to a worried public a product that could undermine prudent public health policy.''
The U.S. Center for Disease Control warns that protective gear should be warn before approaching suspected anthrax.
``Investigators at risk for exposure to Bacillus anthracis, the organism containing anthrax, should wear protective personal equipment, including respiratory devices, protective clothing and gloves,'' according to the CDC's site.
Vital Living, based in Matthews, North Carolina-based company, which went public in April, 1992, was warned by its outside auditor in February that there was ``substantial doubt about its ability to continue as a going concern.''
The audit firm, Wagner Noble & Co., cited Vital Living's recurring losses from operations and its net capital deficiency.
As of June 30, the company's net worth was negative $2.3 million. Its current liabilities of $2 million exceeded its current assets of $624,391 by $1.4 million. |
