Wednesday May 17, 9:15 am Eastern Time
Company Press Release
SOURCE: Biospherics Incorporated
Biospherics Shareholders Voting Postponed By Delay in Proxy Reporting; Informal Meeting Held
BELTSVILLE, Md., May 17 /PRNewswire/ -- More than 100 Biospherics Incorporated (Nasdaq: BINC - news) shareholders crowded a room at the Company for its Annual Meeting Monday, but learned that automated proxy returns had not arrived in time to achieve a quorum. Accordingly, the meeting was postponed until Monday, May 22, 2000. However, an informal meeting was held to bring shareholders up to date on Company news. The Shareholders were reminded that the Expert Panel to determine whether the Firm's low-calorie, full-bulk sweetener is Generally Recognized As Safe (GRAS), permitting its use in foods and beverages, was also in session in Washington, D.C. Biospherics officials assured the shareholders that they, and the public, would be informed of the results of the Expert Committee meeting as soon as the Company received formal word from its licensee Arla Foods. A finding that tagatose is GRAS would free the product for use in the US. Arla Foods officials stated that, upon receipt of GRAS status, they will decide on building the first production plant, which could be ready in about 18 months.
Shortly after the meeting, upon learning that saccharin is no longer considered unsafe by the FDA, Biospherics officials stated that no adverse effect was implied for tagatose. Tagatose, a full-bulk sweetener and saccharin, a high-intensity sweetener, address different markets. Saccharin's market seems fully developed over its many years of use despite the ban. If anything, saccharin might increase tagatose's market through the finding that tagatose improves the taste of high-intensity sweeteners.
Shareholders were told of significant financial and technical strides made by the Company. Record earnings were achieved in the first quarter of 2000, and the Company launched its safe-for-humans pesticide, FlyCracker(TM). Dr. Alan Chmurny, Business Manager of the Biotechnology Division, reported that FlyCracker was introduced to the market in the first quarter of 2000. The product is being featured in four Internet virtual storefronts, on Biospherics' website for direct sale and also by distributors. Dr. Chmurny said initial reception of the product has been gratifying, which he attributed to a long-felt need by the animal husbandry, food and waste processing industries for a safe, environmentally friendly fly larvicide.
Dr. Gilbert V. Levin, Company President and CEO, praised the Company and its senior managers for achieving the quarter's outstanding results. He also described a variety of additional uses the Company has developed for tagatose, of which GRAS status has recently been declared for several, including use of the sweetener in toothpaste and mouthwash (see Biospherics News Release of March 29, 2000). Rights to these uses remain with Biospherics. Additional products under development were described.
First quarter 2000 results for Biospherics compared with 1999:
Three Months Ended March 31,
2000 1999
Revenue $5,253,517 $2,965,895
Operating expense 4,232,507 3,893,655
Income (loss) from operations 1,021,010 (927,760)
Net income (loss) $1,018,377 $(993,814)
Net income (loss) per share, diluted $0.09 $(0.11)
Certain statements contained herein are ``forward looking'' statements as defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ from those expressed or implied. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission, including the filing on Form 8-K made on March 3, 1999.
Under its motto, ``Technologies for Information and Health,'' Biospherics' mission is to provide guidance and products to improve the quality of life. Biospherics offers biotechnology innovations, information technology solutions, and information center services.
SOURCE: Biospherics Incorporated |
