The Health Channel Buy-Out Approved
SAN FRANCISCO--(BW HealthWire)--Dec. 8, 1998--BioLogix International, Ltd. (OTC BB:BGIX), reports that its proposed leveraged buy-out by The Health Channel(tm) has been approved by the Boards of Directors of both companies; clearing the way for a dramatic shift in the company's operating structure.
The companies believe that this buy-out will increase the overall market valuation.
Under the terms of the deal, The Health Channel(tm)(THCL), which already holds the right to spin-off from BioLogix as an independent public company, would acquire all of the current assets of Biologix for cash and stock. The companies believe that this approach will provide BioLogix's shareholders with a return in excess of current market prices. To effect the transaction, The Health Channel Netcasting Corporation, also a Delaware company, would issue new common shares on a one-for-one (1:1) pro-rata basis to all registered shareholders of BioLogix as a declared dividend, up to and through the effective date of the transaction.
Final terms of the distribution will be subject to shareholder approval in accordance with BioLogix year-end Proxy Statement and Information Circular, and the final price for conversion of shares will be determined in close consultation with the company's underwriters and prevailing market conditions for Internet stocks. Many industry experts expect the IPO market for Internet stocks to expand significantly during 1999; particularly as the world-wide-web gains broader Year 2000 global acceptance, and new issues move from strictly service providers to content producers as well. Despite recent profit-taking, public offerings for Internet companies have demonstrated nearly exponential value propositions.
The Health Channel(tm) recently announced efforts to revamp its slate of on-line commercial programming to better suit the needs of both large advertising customers and individual consumers, as well as a shake-up of the roles of several of its key producers and contractors to improve the channel's brand recognition and support long-term market growth. More announcements are expected.
As a disclaimer, the public is asked to note that included in this announcement are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Accordingly, although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct.
CONTACT:
BioLogix International, Ltd.
Mike Grandon, 415/388-1551
KEYWORD: CALIFORNIA
BW1006 DEC 08,1998
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