I just spent some time looking at the latest 10KSB (filed 1/15/98) and it answered some of my questions.
Several points to ponder that I picked out (these are excerps)
"In 1996, the Company commenced development of products containing
extracts of ANDROGRAPHIS PANICULATA, an herb from China and India. In January 1997, the FDA informed the Company that AndroCar(TM) and AndroVir(TM), two products being developed for the treatment of cancer and HIV-positive patients respectively, were classified as pharmaceutical products and did not meet the requirements for sale as dietary supplements. The launch of AndroCar and AndroVir as dietary supplements has been suspended indefinitely."
BUT, I also found...
"During 1997, the Company intended to launch the dietary supplements AndroVir and AndroCar to persons with HIV and cancer, respectively. In April 1997, the Company was advised by the Food and Drug Administrative that the marketing of these products to persons with these diseases would constitute claims that the
products are intended to treat persons with serious diseases and thus intended for drug use and not dietary supplement use. After careful consideration the Company decided to cancel the launch. The Company incurred $300,000 of expenses which were expensed in the year ended September 30, 1997. The Company is seeking pharmaceutical and or nutritional companies as marketing partners for this
product. In the opinion of management the inventory held by the Company as of September 30, 1997 will be recovered by the sale of the ANDROGRAPHIS PANICULATA tablets during the fiscal 1998."
So when was it, January or April, that the FDA said it was no-go. Obviously, one of these statements is a lie. Also, do they REALLY think that I am stupid enough to believe that they will sales in 1998?
Here's another interesting tidbit:
"During fiscal 1997 and 1996, the Company issued 62,500 and 63,336 shares of common stock in exchange for services rendered and issued 7,285 and 2,500 shares, respectively, for the conversion of short-term liabilities. The transactions have been valued based on the estimated fair value of the common stock on the date issued."
Hmmm, just what "services rendered" are we talking about, Indian herb screening, perhaps.
I was interested in just who is left working at PRLN:
"As of September 30, 1997, the Company had 7 employees. Four
employees are primarily engaged in product engineering or manufacturing. Five of the employees have a Ph.D. or MD degree. None of the Company's employees is covered by a collective bargaining agreement. The Company considers its
relationship with its employees to be excellent. All employees of the Company are signatories to confidentiality agreements that restrict proprietary rights in, and commercial development of, all technology developed by the employees."
Okay, down to 7. I was also wondering about the CRADA, and I found out...
"The Company has entered into a Cooperative Research and Development Agreement (CRADA) with the Laboratory of Tumor Cell Biology of the National Cancer Institute (NCI). The principal goals of this proposed CRADA involve the screening of a library of traditional Chinese medicines (TCMs) for their affects
on reducing HIV induced cytotoxicity and/or their ability to inhibit cell growth in various tumor cell lines.
This agreement signed on December 18, 1996 calls for the Company to pay NCI $500,000 over a two year period. The payment terms are $100,000 upon the execution of the agreement and the one year anniversary and quarterly payments of $50,000 during the year. The Company is allowed offsets for "in kind" contributions, such as salaries and consultants paid by directly by Paracelsian. In September, the Company canceled the contract. The Company is obligated to pay certain expenses for six months totaling approximately $17,000."
So the CRADA was cancelled as I thought (they didn't mention in any press release I don't think).
Finally, I was wondering how much longer the copany would last on the Biomar investment...
"In January, 1997 the Company signed an agreement with Biomar
International, Inc. ("Biomar") in which Biomar agrees to purchase 3,571,429 shares of common stock for $500,000. In addition, Biomar will receive warrants to purchase an additional 2,971,429 shares of common stock at a price of $.175 per share or a total of $520,000. These warrants expire 90 days after the shares and warrants are registered with the Securities and Exchange Commission ("SEC").
Biomar will also become the major shareholder and received control of the Board of Directors. Biomar is controlled by T. Colin Campbell a former director of the company and his son, T. Nelson Campbell a former Vice President of the Company.
This additional financing will enable the Company's available
cash and existing sources of funding to satisfy its capital and operating requirements through September 1998. The Company's future capital requirements will depend on many factors, including continued scientific progress in its research and development programs, the magnitude of such programs and the
settlement of various law suits."
Well, PRLN will stay afloat unitl September then, unless they cut back on the employees again.
I continue to watch, wait, and obtain additional inforamtion.
Rick |
