IGNE - Anyone confirm the following settlement with ADM $100Million??
RECENT DEVELOPMENTS AND ANALYSIS: In 1995 the Company signed a
nonexclusive licensing agreement with Archer Daniels Midland Company (ADM) for the manufacturing and sale of AstaXin(r)worldwide. On February 29, 1996, ADM informed IGENE that it would no longer use IGENE's astaxanthin technology and terminated the licensing agreement. On August 4, 1997, the Company filed a $300,450,000 contract and trade secrets lawsuit in U.S. District court in Baltimore,Maryland against ADM, contending that ADM stole the Company's formula for making
its natural astaxanthin pigment, AstaXin(r). The Company was also claiming breach of contract, in regards to the licensing agreement entered into by the Company and ADM in 1995. The Company was contending that it complied with all material terms of this agreement, including concentration levels of its pigment. On September 10, 1997 the District Court denied ADM's request for a preliminary injunction on the basis that ADM could not demonstrate a likelihood of success on the merits of its case.
Before 1998, IGNE was a development stage company. In March, 1998, IGNE began production of commercial quantities of its natural astaxanthin product, AstaXin(r), at its contract manufacturing
facility in Mexico. The Company stated that shipments to satisfy existing orders will commence by the end of March. Since then, the Company has received many orders that are worth about $5 million. It is estimated that the revenues will top $10 million in 1998 from its production of AstaXin (r). In order to finance massive manufacturing of AstaXin (r), the Company also raised $5 million from its directors, that will allow IGNE to finish its transition from a development stage company to a manufacturer.
According to a report from "Small-Cap Investment Center" published yerterday, ADM will settle the lawsuit in favor of IGNE. Major terms include, but not limited to, that ADM will stop the production of
astaxanthin pigment and IGNE will receive $100 million from ADM for next five years,$20 million a year. This money should allow IGNE to build up a manufacturing facility for massive production of AstaXin(r). Also, the company will be able to pay its shareholders some dividend at $0.50/share per year s . Since ADM will no longer be
allowed to produce astaxanthin pigment, IGNE will be a major player in this market worldwide. it is estimated that revenues will top $100 million in 1999 for the Company.
IGNE shares have been traded very actively since last March. Insiders are buying the shares actively. There is important technical support in the area of $0.10/share. With these recent developments, IGNE shares are ready to move up with huge upside potential. The target price for IGNE shares is in a range of $1-2/share in a short term (1-6 months) and in a range of $3- 4/share in a long term (6-24 months).
Contact:
Stephen Hiu, President
9110 Red Branch Road
Columbia, MD 21045
Tel: (410)997-2599
Fax: (410) 730-0540
E-mail: igene@igene.com
Company Website: igene.com
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