This is a death dance. Either Asensio or HEB will be standing at the end of all this. Asensio is intent on slandering the company by purposely making the worst possible interpretation of data without doing any confirmation and making outrageous and untrue assertions, like insider sales.
Company response follows:
Hemispherx Warrants and Options Strengthen Balance Sheet
NEW YORK, Nov. 18 /PRNewswire/ -- Hemispherx Biopharma, Inc. (Amex: HEB - news) today said that the exercise of warrants and options to purchase common stock during the nine months ended September 30, 1998, generated cash proceeds to the company of $9.6 million.
The exercise of warrants and options to purchase common stock is the primary source that increased cash, cash equivalents and short-term investments to $15.4 million at September 30, 1998, compared to $9.9 million at December 31, 1997. The company also completed a private placement that generated proceeds to the company of $2.25 million during the first nine months.
The company believes that the exercise of warrants generally reflects the strong appreciation in the Hemispherx share price since the warrants were issued, as well as the holders' confidence in the company's prospects. To receive favorable long-term capital gains treatment, investors must hold the common shares they receive from the exercise of the warrants for at least 12 months.
Hemispherx said that no employees, officers or directors exercised any vested warrants in the third quarter. The company reaffirmed that there had been no significant selling of common shares over this period by any member of the executive management team or board of directors. While certain lock-up agreements regarding shares owned by Hemispherx Chief Executive Officer Dr. William A. Carter expired recently, he said that he intends to be a net buyer for the foreseeable future. Year-to-date, Dr. Carter has been a buyer of Hemispherx shares and has sold none.
After conversion of warrants during the third quarter, the company's common shares outstanding stood at approximately 24.7 million. The company's 10-Q filings report shares outstanding as of the end of the reporting period, and not as of the filing date, in keeping with practice among such leading pharmaceutical companies as Bristol Myers and Schering Plough.
The company's lead drug, Ampligen®, is currently being evaluated in Phase III clinical programs in North America and Europe and is also available in the U.S. under a cost-recovery program authorized by the FDA and administered in conjunction with Olsten Healthcare (NYSE: OLS - news). At this time, there is no fully approved treatment specifically for CFS and, to the company's knowledge, Ampligen® is the only drug authorized for Phase III clinical testing in CFS in the U.S.
-------------------------------------------------------------------------------- |
