As you requested , another press release ...
Duramed Pharmaceuticals Extends Release Date for Convertible Preferred Stock to October 2, 1998
CINCINNATI, July 30 /PRNewswire/ -- Duramed Pharmaceuticals, Inc. (Nasdaq: DRMD) today announced that it has exercised its option to extend the release date for conversion of one half of its Series F Convertible Preferred Stock to October 2, 1998 from August 4, 1998. On February 4, 1998, Duramed issued $12 million of Series F Convertible Preferred Stock in a private placement managed by Shoreline Pacific, Institutional Finance Division of Financial West Group.
Under the terms of the original agreement, one half of the preferred shares were convertible immediately after the transaction closed. The remaining half will now be convertible after October 2, 1998. The conversion price for the first half of the Series F Preferred Stock would be $7.30 per share through the new release date. After that date, with respect to the second half of the Series F Preferred Stock and any unconverted portion of the first half, the conversion price will vary depending on the timing of conversions and the market price of the common stock. Under the terms of the extension, the ultimate conversion price, which can range from a premium to the market price to a discount from the market price of the common stock, will be discounted by an additional 2 percent to reflect the extension.
The Preferred Stock pays a dividend of 5% annually, payable quarterly in arrears, on all unconverted Preferred Stock. Any of the Series F Preferred Stock that remains outstanding will be redeemed automatically on February 4, 2000.
At July 29, 1998, Duramed had approximately 17,939,000 common shares outstanding. Depending on the ultimate conversion price, the number of common shares issued in satisfaction of conversion could range from a low of 1,397,000 to a high of 3,582,000, with provision for cash redemption of any remaining unconverted Series F Preferred Stock.
About the Company
Duramed Pharmaceuticals, Inc. currently develops, manufactures and markets prescription drug products. The company's product development program is focused on hormonal therapies and controlled release technology. On March 30, 1998, the company submitted its first New Drug Application (NDA), for its synthetic conjugated estrogens product. On June 15, 1998, Duramed announced that the FDA had completed its preliminary review of the product. When approved by the FDA, the product will be marketed under the brand name Cenestin(TM). The worldwide estrogen replacement market is approaching $2 billion and growing at a rate of 15 percent per year.
The company's common stock is traded on Nasdaq under the symbol DRMD. Additional information on the company can be found on the World Wide Web at duramed.com.
The Securities and Exchange Commission (SEC) encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. Due to changing market conditions, product competition, the nature of product development and regulatory approval processes, the achievement of forward- looking statements contained in this press release are subject to risks and uncertainties. For further details and a discussion of these risks and uncertainties, see Duramed's SEC filings, including its annual report on Form 10-K.
Rob |
