Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: george eberting who wrote (3752)	3/15/2001 9:29:14 AM
From: george eberting	Respond to of 5582

Gum Tech International Announces Asset Purchase Agreement With the Wm. Wrigley Jr. Company PHOENIX, March 15 /PRNewswire/ -- Gum Tech International Inc., (Nasdaq: GUMM - news) announced today that it has signed a definitive agreement to sell selected assets of its gum business to the Wm. Wrigley Jr. Company (NYSE: WWY - news). The agreement provides for the Wrigley Company to pay $25 million to acquire Gum Tech's manufacturing operations and certain contracts and other assets associated with its gum business. The agreement also provides for royalty payments on certain gum products and short-term, general service agreements during a transition period. Under the arrangement, the Wrigley Company will also purchase 200,000 shares of Gum Tech common stock for investment purposes (based on the average market price for a recently completed ten-day trading period). Gum Tech is retaining its 60% majority interest in Gel Tech, LLC, which markets and distributes Zicam(TM) Cold Remedy and Zicam(TM) Allergy Relief, and its interest in a joint venture with Swedish Match AB. ``We believe this transaction represents a significant opportunity for our shareholders to realize most of the potential associated with our functional gum programs while providing the company with the financial resources to enhance its non-gum business opportunities,'' said Mr. William Boone, Chairman of Gum Tech's Board of Directors. Upon completion of the transaction, Gary Kehoe will join the Wrigley Company but will maintain a consulting relationship with Gum Tech. ``This transaction provides Gum Tech the capital and resources necessary to pursue its core strategy involving the delivery of bio-active compounds and the continued development of the Zicam(TM) product line.'' The acquisition is subject to a number of conditions, including approval by the shareholders of Gum Tech, and is expected to be completed during the second quarter of 2001. For additional information, please contact Lynn Romero, Manager of Investor Relations, 602-252-1617, ext. 320, lromero@gum-tech.com. Gum Tech is located at 246 East Watkins Street, Phoenix, Arizona 85004. Gum Tech Forward-Looking Statement Disclaimer: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Gum Tech's expectations regarding its ability to consummate the transaction described above as well as the anticipated consequences to Gum Tech following the closing of the transaction. These forward-looking statements are based on Gum Tech's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond Gum Tech's control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Factors that could cause actual results to differ materially from Gum Tech's expectations include the inability of either Gum Tech or the Wrigley Company to satisfy any of the conditions for completing the transaction, the inability of Gum Tech to obtain shareholder approval of the transaction, potential delays in consummating the transaction due to factors beyond the control of Gum Tech or the Wrigley Company, the possibility that Gum Tech may not realize any royalties from sales of products by the Wrigley Company, and the possibility that Gum Tech may not be successful in expanding its presence in the market for delivery of bio-active compounds. Other factors that could cause actual results to differ materially from the Company's expectations are described in the Company's reports filed pursuant to the Securities Exchange Act of 1934. SOURCE: Gum Tech International Inc.

To: george eberting who wrote (3752)	3/15/2001 10:20:09 AM
From: Sir Auric Goldfinger	Respond to of 5582

Seems clear to me that GUMM has thrown in the towel. Why else would they sell off their manufacturing assets? You clearly think that the press is good. It is not. GUNN Allen is holdign waaaaaaaay to much stock ans BS ISLD bisa ain't gonna help them, loser.