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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (3390)	10/10/2002 5:49:50 PM
From: Icebrg	Read Replies (1) \| Respond to of 10345

GlycoGenesys, Inc. Reclassifies Series A Preferred Stock in Restatement of Second Quarter 10-Q Does Not Affect Net Loss, Cash Flows or Total Assets Thursday October 10, 5:42 pm ET BOSTON--(BUSINESS WIRE)--Oct 10, 2002--GlycoGenesys, Inc. (NASDAQ:GLGS - News), a biotechnology company focused on carbohydrate-based drug development, today announced that it will restate its balance sheet information at June 30, 2002 to present its Series A redeemable convertible exchangeable preferred stock, with a carrying amount of $12.9 million, outside of permanent equity. In its Form 10-Q for the quarter ended June 30, 2002, the Company disclosed that it was in discussion with the SEC regarding the possible reclassification of its Series A preferred stock as temporary equity. The Series A preferred stock was issued to Elan International Services, Ltd. ("EIS") in connection with the formation in July 2001 of the Company's joint venture with EIS, SafeScience Newco, Ltd., and is exchangeable for the preferred shares of SafeScience Newco, Ltd. held by the Company. This restatement will not affect net loss or cash flows for the three or six months ended June 30, 2002, nor does it affect total assets. If EIS exercises its exchange right, the Series A preferred stock would be exchanged for a portion of the Company's interest in SafeScience Newco, Ltd., which currently has no carrying value on the Company's books. Such an exchange would result in the placement of $12.9 million back into permanent shareholders' equity. Similarly, if EIS elects to convert the Series A preferred stock into common stock, the $12.9 million being presented as temporary equity would return to permanent equity. However, until the exchange right is exercised, or is cancelled, or the preferred stock is converted into common stock, the preferred stock will be classified as temporary equity. The Company intends to amend its Form 10-Q for the quarter ended June 30, 2002 to reflect this restatement. GlycoGenesys, Inc. GlycoGenesys develops and licenses pharmaceutical and agricultural products. The Company's human therapeutic product GCS-100, formerly referred to as GBC-590, a unique compound to treat cancer, has completed a Phase IIa human clinical trial in both colorectal and pancreatic cancer. In February 2002, the Company initiated a Phase I dose escalation trial of GCS-100 at Sharp Clinical Oncology Research in San Diego, California. In the area of agriculture, GlycoGenesys continues to seek strategic alternatives for Elexa-4® Plant Defense Booster. Further information is available on GlycoGenesys' web site: www.glycogenesys.com