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

To: Mad2 who wrote (4558)	8/19/2003 12:45:11 PM
From: StockDung	Respond to of 5582

If things are so good at GUMM, why would they bother?: "Matrixx Initiatives, Inc. Announces Extension of Line of Credit 2003-08-19 10:30 (New York) Comerica Bank Extends Term by Two Years, Reduces Rates PHOENIX, Aug. 19 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc. (Nasdaq: MTXX), developer and distributor of the expanded line of Zicam(R) products, today announced that the Company has secured a two-year extension of its $2.5 million credit facility with Comerica Bank. Under the new credit facility, Matrixx secured a substantial improvement in its borrowing ability, as well as a reduction in its borrowing rate. "We are very pleased by our ability under the extension to borrow the full $2.5 million under the credit facility at a reduced interest rate and without the limitations on our accounts receivable and inventory levels that existed under the original facility. Because of the seasonality of our business, this represents a significant improvement in our financing flexibility over the original facility. In addition, our financial covenants under the extended facility have been improved from those in the original facility," said William Hemelt, executive vice president and chief financial officer for Matrixx. "We believe the two-year Comerica commitment under these improved terms is a tangible result of Matrixx's continuing financial improvement." About Matrixx Initiatives, Inc. Matrixx Initiatives, Inc. is engaged in the development, manufacture and marketing of innovative drug delivery systems for over-the-counter OTC pharmaceuticals. Zicam, LLC, its wholly-owned subsidiary, produces, markets and sells Zicam(R) Cold Remedy nasal gel, a patented, homeopathic remedy that has been clinically proven to significantly reduce the duration and severity of the common cold. In studies published in the October 2000 issue of ENT - Ear, Nose and Throat Journal, and separately in the January 2003 issue of QMJ: An International Journal of Medicine, the Zicam Cold Remedy product was shown to reduce significantly the duration of the common cold. The Company also manufactures and markets a full line of Zicam brand pharmaceuticals, including Zicam Cold Remedy Swabs; Zicam Kids Size Cold Remedy Swabs; Zicam Extreme Congestion Relief; Zicam Sinus Relief; and Zicam Nasal Moisturizer. For more information regarding Matrixx products, go to www.zicam.com . To find out more about Matrixx Initiatives, Inc. (Nasdaq: MTXX), visit our website at www.matrixxinc.com . For additional information, contact William Hemelt, executive vice president and chief financial officer, 602-387-5353, whemelt@matrixxinc.com, or Lynn Romero, investor relations, at 602-387-5353, lromero@matrixxinc.com. Matrixx is located at 2375 East Camelback Road, Suite 500, Phoenix, Arizona 85016. About Comerica Comerica Incorporated (NYSE: CMA) is a multi-state financial services provider headquartered in Detroit, with banking subsidiaries in Michigan, California and Texas, banking operations in Florida, and businesses in several other states. It is among the 20 largest banking companies in the United States, with $59 billion in total assets as of June 30, 2003, and first among the top 50 U.S. bank holding companies in commercial loans as a percent of total assets. Matrixx Initiatives, Inc. 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 Matrixx Initiatives, Inc.'s possible use of its credit facility to address seasonality issues and the effect of the credit facility on the Company's financing flexibility. These forward-looking statements are based on the Company's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond the Company'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 the Company's expectations include the possibility that sales of the Company's products will not be as strong as expected or that the possibility that the development and introduction of new products by the Company will not be successful, in either case giving rise to the Company's need to draw on the credit facility to a greater extent than anticipated. 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 Matrixx Initiatives, Inc. -0- 08/19/2003 /CONTACT: William Hemelt, executive vice president and chief financial officer, +1-602-387-5353, whemelt@matrixxinc.com, or Lynn Romero, investor relations, +1-602-387-5353, lromero@matrixxinc.com, both of Matrixx Initiatives, Inc./ /Web site: zicam.com / /Web site: matrixxinc.com / (MTXX CMA) CO: Matrixx Initiatives, Inc.; Comerica Incorporated; Comerica Bank ST: Arizona IN: FIN MTC SU: -0- Aug/19/2003 14:30 GMT

To: Mad2 who wrote (4558)	9/3/2003 11:28:11 PM
From: StockDung	Respond to of 5582

Funny how one starts down the steep & ugly path. Here's Strong funds (recent buyer of MTXX) now in Elliott Spitzer's sights, LOL, wonder what Elliot would think if he read the GUMM/MTXX thread?: "Spitzer Kicks Off Fund Probe With a $40 Million Settlement By RANDALL SMITH and TOM LAURICELLA Staff Reporters of THE WALL STREET JOURNAL New York Attorney General Eliot Spitzer, opening a new front in allegations of financial-market abuses, charged that a hedge-fund manager arranged with several prominent mutual-fund companies to improperly trade fund shares -- some after the market's close -- reaping tens of millions of dollars in profits at the expense of other fund investors. Edward J. Stern, managing principal of Canary Investment Management LLC, agreed without admitting or denying wrongdoing that his company will pay a $10 million fine and $30 million in restitution. That settled civil charges that Mr. Stern violated New York state's business law against using fraud, false statements, deception and concealment in trading securities. But Mr. Spitzer said future charges were "almost certain" to be brought against mutual-fund companies themselves and possibly others. Funds cited, but not named as defendants, in Mr. Spitzer's complaint include Bank of America Corp., Bank One Corp., Janus Capital Corp., and Strong Capital Management Inc. Such scrutiny of the mutual-fund business, among the most serious faced by the industry in decades, threatens to undercut the presumption that individual investors get treated fairly in the main vehicle that 95 million Americans use to invest for everything from college savings to retirement. The charges could stir concern among investors about the ways in which big investors may get preferential treatment in the market. Most hedge funds are primarily private investment pools for the wealthy, though many also take investments from institutions such as retirement funds. "It's a very serious breach of trust" of individual investors' confidence in the markets, says John C. Bogle, founder of the Vanguard Group. Mr. Stern, 38 years old, is the son of Leonard Stern, the New York real-estate billionaire and chairman of Hartz Mountain Industries, one of the richest people in America. That helped the younger Mr. Stern get favorable treatment from some financial institutions, according to the complaint Mr. Spitzer filed in a New York state court. The complaint alleges the younger Mr. Stern initiated agreements to engage in frequent in-and-out "timing trades," at mutual funds run by several well-known financial institutions. Mr. Stern allegedly arranged to engage in late trading, after the 4 p.m. close of stock-market trading, at funds managed by Bank of America, and via smaller securities firms including Security Trust Co. in Phoenix, Ariz. Such trading offered the opportunity for greater profits by taking advantage of market-moving events after the closing of stock-market trading. While market timing isn't necessarily illegal on its face, Mr. Spitzer said fund companies had misled investors by contending they prohibit it while some funds had agreements allowing it. Late trading on mutual funds after their price closes is prohibited by New York's anti-fraud Martin Act and Securities and Exchange Commission regulations, Mr. Spitzer asserted. Mr. Spitzer compared the after-the-close trading to being allowed to bet on a horse race after the race was over. "The late trader," he said, "is being allowed into the fund after it has closed for the day to participate in a profit that would otherwise have gone completely to the fund's buy-and-hold investors." A Stern family spokesman said Canary "decided to enter into a settlement to avoid protracted and complex litigation," and admitted "no wrongdoing." Mr. Stern also voluntarily agreed not to trade in mutual funds or manage any public investment funds for 10 years. Officials at Bank of America, Strong, Janus and Bank One said they were cooperating with the attorney general's investigation but declined to comment on specifics in the complaint. The action by Mr. Spitzer -- whose initial charges of research conflicts at major Wall Street firms in 2002 led to a $1.4 billion settlement with regulators a year later -- sent shivers through the mutual-fund business. In unveiling the case, he said there was "evidence of widespread illegal trading schemes that potentially cost mutual fund shareholders billions of dollars annually." In a statement, Mr. Spitzer said "the full extent of this complicated fraud is not yet known," but he asserted that "the mutual-fund industry operates on a double standard" in which certain traders "have been given the opportunity to manipulate the system. They make illegal after-hours trades and improperly exploit market swings in ways that harm ordinary long-term investors." For such long-term investors, rapid trading in and out of funds raises trading costs and lowers returns; one study published last year estimated that such strategies cost long-term investors $5 billion a year. According to the complaint, Bank of America, Janus, Strong Funds and the funds offered by Bank One permitted short-term trading in return for guarantees by Mr. Stern that he would put so-called "sticky money" into other funds that would not be part of the trading strategy. The practice of placing late trades, which Mr. Stern was accused of at Bank of America, also hurts long-term shareholders because it dilutes their gains, allowing latecomers to take advantage of events after the markets closed that were likely to raise or lower the funds' share price. In exchange, the complaint said, the financial institutions obtained interest and other fees for lending to facilitate the trading, as well as fees for assets Canary promised to keep in other funds on a longer-term basis. At Bank of America, for example, the activity included the bank's securities, lending, derivatives, and clearing or trade processing operations. The bank even provided an up-to-date list of the funds' holdings so derivatives could be created to bet on a decline in the funds' price in a so-called short sale. In a statement after Mr. Spitzer's announcement, SEC Chairman William H. Donaldson called the abuses charged "reprehensible" and pledged to continue a review of regulatory issues regarding both mutual funds and hedge funds. But by his action, Mr. Spitzer again encroached on the SEC's regulatory turf, beating them to the punch as he did with his cases on the conflicts facing Wall Street research analysts. Both the SEC and NASD, another securities regulator, already are examining sales-practice abuses by mutual funds, and the SEC is investigating the activities of hedge funds as well. SEC officials said they were somewhat frustrated that Mr. Spitzer didn't involve the agency in his investigation and didn't brief the SEC about the alleged misconduct. Seth Taube, a New Jersey attorney and former SEC enforcement lawyer, said the state investigations could put pressure on the SEC to do quicker, less thorough probes as the agency seeks to restore its stature as the top enforcer of securities law. "There will be pressure on the SEC to move more quickly and less deliberately," said Mr. Taube. Write to Randall Smith at randall.smith@wsj.com and Tom Lauricella at tom.lauricella@wsj.com