Interesting development. This is following on the heels of ORG's announcement. ORG, however, is selling product.
This may very well work out for ORTC. ORTC's valuation seems to be maintained in a consistent discount to that of ORG. ORG has this tremendous short interest overhang. It really is time for these shorts to start covering. As ORG's price moves up so will, I think, ORTC's.
In any case (regardles of whether one considers this move foolhardy) management does believe that this stock has hit or is hitting bottom.
Only tine will tell.
They do need to publish more news on where they are in relation to their milestones.
Friday September 4, 8:55 am Eastern Time
Company Press Release
Ortec Board Authorizes Share Buy Back
NEW YORK--(BUSINESS WIRE)--Sept. 4, 1998--Ortec International, Inc. (NASDAQ: Small Cap: ORTC) announced today that its Board of
Directors has authorized the repurchase of up to 250,000 shares of its common stock. The timing of the purchases for these shares is at the
discretion of management and dependent on market conditions.
Steven Katz, PhD, Chief Executive Officer of Ortec, said regarding the share repurchase, ''The decision by the board to authorize share
repurchases expresses the confidence that the board and management have in Ortec, its technology and its future and the board and
management's belief is that the current share price does not accurately reflect Ortec's value.''
Ortec International is a biotechnology company involved in the development of proprietary and patented technology to stimulate the repair and
regeneration of human tissues, such as skin. Ortec's technology consists of a patented biologically active dressing (CCS) consisting of a
bioengineered bovine collagen matrix seeded with epidermal and dermal cells. CCS is currently in clinical trials for treatment of donor sites and
venous ulcers. Ortec believes that CCS may have wide commercial applications for the treatment of burns, diabetic and venous skin ulcers and
serious skin diseases, such as EB, as well as for reconstructive and cosmetic surgeries.
Certain statements made in this press release which express the belief, anticipation or expectation, as well as other statements which are not
historical fact, and statements relating to the clinical trials and their results, design, FDA product approvals, features, functionality and
performance insofar as they may apply prospectively, are forward-looking statements within the meaning and pursuant to the Safe Harbor
provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties. The Company's actual results may differ
significantly from the results discussed in this release or in other forward-looking statements presented by management. Factors that might
cause such a difference include but are not limited to, development by the Company's competitors of new technologies or products that are
more effective than the Company's, risks of failure of clinical trials, dependence on and retention of key personnel, protection of proprietary
technology, compliance with U.S. Food and Drug Administration regulations, continued availability of raw material for the Company's products,
availability of product liability insurance in the event of commercialization of the Company's products, ability to effect transition from pilot-scale
manufacturing to large-scale commercial production of products, uncertainty as to the availability of additional capital on acceptable terms, if at
all, and the demand for the Company's products, if and when commercially available.
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