MK Global Ventures Adds to 20% Stake in Human Pheromone Sciences, Inc. Through $600,000 Series BB Convertible Preferred Stock Purchase
Investment Follows Announcement of Strategic Supply Agreement With Multi Billion Dollar Cosmetics Marketer
PALO ALTO, Calif., Jan. 14 /PRNewswire/ -- Michael Kaufman, General Partner of MK Global Ventures, today announced that MK Global Ventures and affiliates have added a $600,000 purchase of Human Pheromone Sciences, Inc., ''HPSI'' (Nasdaq: EROX - news) Series BB convertible preferred stock to their existing 20% stake in the Company. The investment consists of 6,000 shares of Series BB stock, at $100 per preferred share. Under terms of the purchase, holders of HPSI Series BB convertible preferred shares may convert their holdings to the Company's common shares, listed on Nasdaq under the ticker symbol EROX, at any time. The Series BB shares initially convert to common shares automatically at a 100-to-1 ratio, resulting in an effective conversion price of $1 per common share. MK Global Ventures remains Human Pheromone Sciences largest institutional shareholder.
Michael Kaufman, Managing General Partner of MK Global Ventures, commented, ''We see our stake in Human Pheromone Sciences as an investment in fundamental technology that is only starting to be understood as scientific validation increases. Management's recent announcement of a corporate licensing agreement with a major, multi-national cosmetics company validates our existing and continued investments in this company. HPSI has the rare opportunity to harness a previously untapped source of consumer product innovations offering a unique and broad-based appeal.''
''Our stake in HPSI, and this increase in our stake, is grounded in the immediate and long-term potential for the development of pheromone-based consumer products that affect human moods and emotions,'' continued Mr. Kaufman. ''The fragrance additive industry is a multi-billion market place made up primarily of commodity ingredients. HPSI is in the position to attack this market by providing consumer products companies with a proprietary additive that can add true product differentiation on the retail shelf. The goal is for HPSI's patented compounds to do for smell what Nutrasweet® has done for taste |
