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Paracelsian Announces Biomar Investment and Warrant
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ITHACA, N.Y., Aug. 12 /PRNewswire/ -- (Nasdaq: PRLN) Paracelsian, Inc.
(http://www.paracelsian.com) announced today that Biomar International, Inc.
has exercised its warrants for Paracelsian common stock in the aggregate
amount of $520,000. The warrants were issued in connection with the initial
investment transaction between Paracelsian and Biomar in January, 1998.
"For an early stage company such as Biomar, capital is our most precious
resource. Our initial investment in January put Biomar's survival at risk,"
said T. Nelson Campbell, Biomar's Chairman. "The extraordinary efforts of
Bernie Landes, Paracelsian's CEO, and the rest of the administrative and
science team at Paracelsian have validated our initial belief in the promise
of Paracelsian. Our follow-up investment is a vote of confidence in this
hardworking and talented team," Mr. Campbell added.
In a related development, Paracelsian announced today that its Board of
Directors has approved an extension of the warrants for Common Stock through
September 6, 1999. The warrants, which were a dividend in September 1993,
were set to expire on September 6, 1998. In addition to extension of the
warrants, the Paracelsian Board of Directors approved changes to the exercise
price of the warrants. The exercise price will be reduced from $3.25 to $1.75
through December 1998. The exercise price will increase to $2.50 from January
1, 1999 to April 30, 1999, and to $3.25 from May 1, 1999 to September 6, 1999.
Holders of the warrants will be notified by mail and provided with the details
of the changes.
"We have made the adjustments to our publicly traded warrants as part of
our overall financing strategy," said Bernie Landes, Paracelsian's President
and CEO. "We anticipate that the exercise of warrants will help bridge the
Company into positive cash flow from our relationship with R.P. Scherer and
our other initiatives," he added.
Paracelsian is a unique biotechnology company whose business centers on
the development and application of functional bioassays. These assays are
used for Quality Assurance of herbs, botanicals and other dietary supplements,
in the development of dietary supplement, OTC and pharmaceutical products, and
in monitoring environmental toxins and identifying carcinogens.
This news release and oral statements made from time to time by Company
representatives concerning the same subject matter may contain so-called
"forward-looking statements". These statements can be identified by
introductory words such as "expects," "plans," "will," "estimates,"
"forecasts," "projects," or words of similar meaning.
Investors are cautioned that such forward-looking statements involve risks
and uncertainties, including but not limited to, the results of research and
development efforts, the effect of regulation by the United States Food and
Drug Administration and other agencies, the impact of competitive products,
product development commercialization and technological difficulties, and
other risks detailed in the Company's periodic reports filed with the
Securities and Exchange Commission.
No forward-looking statement is a guarantee of future results or events,
and one should avoid placing undue reliance on such statements.
SOURCE Paracelsian, Inc.
-0- 08/12/98
/CONTACT: Bernie Landes, President and CEO of |
