Hey Dan funny how the $20 Million went poof! You remember, the $20 M that MTXX/GUMM was gonna get from Zila?
But you always seem to know ahead and so does your erstwhile scumbag manipluating broker GNLN:
"Zila Achieves Favorable Settlement in Dispute with Matrixx
2003-08-14 07:01 (New York)
Business Editors/Health/Medical Writers
PHOENIX--(BUSINESS WIRE)--Aug. 14, 2003--Zila, Inc. (Nasdaq:ZILA)
announced today it has settled the claims brought against Zila and the
Company's Zila Swab Technologies, Inc. subsidiary ("ZST") by Matrixx
Initiatives, Inc. ("Matrixx") (Nasdaq:MTXX) of Phoenix, Arizona.
Matrixx sought arbitration in April against ZST and filed a claim
against the Company and ZST in the Superior court of Arizona seeking a
temporary restraining order ("TRO"). Under the arbitration claim,
which sought monetary damages, Matrixx alleged that ZST breached
certain obligations by failing to produce requested levels of swabs
for Matrixx under a swab manufacturing contract and by raising its
prices. In the TRO action, Matrixx asked to require ZST to produce at
requested levels and at the former prices.
Under the settlement, Matrixx withdrew all its claims against Zila
and accepted the ZST price increase on the swabs and ZST's current
level of production. Also, Zila said that certain other terms related
to its volume commitments were renegotiated to ZST's benefit.
Zila Chairman, President and Chief Executive Officer Doug Burkett,
Ph.D., said, "We are pleased with this settlement. Given the economics
of the settlement, we expect that ZST will be profitable in FY04 and
we feel we have established a better business relationship with
Matrixx going forward."
Zila's existing contract with Matrixx was extended by 90 days to
March 31, 2004 under the terms of the agreement, but it is unlikely
that the contract will be renewed at that time.
Zila, Inc., headquartered in Phoenix, is an international provider
of healthcare and biotechnology products for dental/medical
professionals and consumers. Zila has three business units:
-- Zila Biotechnology, a research, development and licensing
business specializing in pre-cancer/cancer detection through
its patented Zila(R) Tolonium Chloride and OraTest(R)
technologies.
-- Zila Nutraceuticals, manufacturer and marketer of Ester-C(R),
a branded, superior efficacy nutrition product.
-- Zila Pharmaceuticals, "The Oral Soft Tissue Experts" marketing
ViziLite(TM) oral examination kits, Zilactin(R) OTC oral care
products, and Peridex(R) prescription periodontal rinse.
For more information about Zila, visit www.zila.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These forward-looking
statements are based largely on Zila's expectations or forecasts of
future events, can be affected by inaccurate assumptions and are
subject to various business risks and known and unknown uncertainties,
a number of which are beyond the Company's control. Therefore, actual
results could differ materially from the forward-looking statements
contained herein. A wide variety of factors could cause or contribute
to such differences and could adversely impact revenues,
profitability, cash flows and capital needs, including the ability of
ZST to operate profitably in fiscal 2004 by, among other items,
achieving manufacturing efficiencies and controlling its costs. There
can be no assurance that the forward-looking statements contained in
this press release will, in fact, transpire or prove to be accurate.
For a more detailed description of these and other cautionary factors
that may affect Zila's future results, please refer to Zila's Form
10-K and 10-K/A for its fiscal year ended July 31, 2002, and its Form
10-Q for the quarter ended April 30, 2003, filed with the Securities
and Exchange Commission.
--30--MCC/sf*
CONTACT: Zila, Inc.
Doug Burkett, 602-266-6700
KEYWORD: ARIZONA
INDUSTRY KEYWORD: LEGAL/LAW MEDICAL PHARMACEUTICAL MEDICAL DEVICES
BIOTECHNOLOGY MARKETING AGREEMENTS PRODUCT
SOURCE: Zila, Inc.
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