A summary of last weeks events with Fountain may be helpful:
The company has filed all the appropriate forms with the SEC indicating and confirming the new financing from the investment firm Eaglestone Capital Services, Inc./Fountain Holdings, LLC. Eaglestone has extensive experience in providing capital to developing companies. However, and this should be recognized for its significance, Fountain represents the first pharmaceutical firm Eaglestone has sponsored.
The arrangement appears quite favorable, substaintial, and enduring. The company will receive an immediate cash influx of $2,500,000 and indications, in writing from the investors, to actively aid in the promotion of additional financing, if necessary, in the future. This financing eliminates virtually all of the Comany's debt and provides signifcant resources for research and production of their drug encapsulation technology. As part of the financing package the board of directors of Fountain has been shuffled - at least two members have been replaced - and the investors appear to be exerting significant influence in restructuring the company. The surge in the share price in recent months may have as much to do with the caliber of the new personel now at FPHI as it does with the now substantially stronger financial position.
The company continues to make progress: the recent SEC filing indicated the encapsulation technology has now been patented in Norway and there have been discussions regarding the use of Fountain's proprietary approach as a means, in effect, to extend the patent life of pharmaceuticals. There have also been discussions suggesting an interest by Merck in Fountain's products.
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