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Biotech / Medical : CMTR-CHEMTRAK FDA OK -- Ignore unavailable to you. Want to Upgrade?

To: Mr. E who wrote (1032)	4/30/1998 4:25:00 PM
From: John T. Hardee	Respond to of 1172

VChemTrak Announces Preferred-Stock Financing SUNNYVALE, Calif.--(BUSINESS WIRE)--April 30, 1998--ChemTrak Inc. (Nasdaq:CMTR - news) Thursday announced that it has raised approximately $1 million from the private placement of redeemable convertible preferred B stock. This placement is the first of two tranches. The preferred B shares are convertible into common stock 90 days after closing. The preferred stock bears cumulative dividends at an annual rate of 6 percent, payable in shares of common stock or cash at the company's option. The preferred B shares, after adjustment to account for any accrued dividend that has not been paid in cash, is convertible at a conversion price equal to the lower of (1) 100 percent of the five-day Nasdaq average closing-bid price on the date of each individual closing, or (2) 75 percent of the five-day average Nasdaq closing-bid price at time of conversion. An additional tranche of up to $2 million convertible preferred B is expected to close later in the second quarter. In February 1998, the company announced the private placement of $1.3 million of convertible preferred A shares. ''Proceeds from this offering will be used to continue the marketing and advertising programs associated with the nationwide rollout of our new Parent's Alert Home Drug Test Service later this summer and for general corporate purposes,'' said Donald V. Fluken, chief financial officer. ''Initial results from this product line have been extremely encouraging. Our research suggests that Parent's Alert represents an annual market of up to $165 million.'' ChemTrak's products for home use are available at all major chain drug and mass-merchant outlets, and include Parent's Alert Home Drug Test Service, a counselor-supported home drug-test service committed to helping parents prevent and elmiminate drug abuse by their children; the CholesTrak Home Cholesterol Test; and the ColoCARE Home Test to Detect the Early Warning Signs of Colorectal Disease. The ChemTrak AccuMeter H. Pylori Test to determine the presence of a bacterium associated with duodenal and peptic ulcers and the AccuMeter Theophylline Test, a point-of-care quantitative assay for theophylline, a drug commonly used for the treatment of asthma, have been cleared for marketing to physicians' office labs by the Food and Drug Administration. Located in Sunnyvale, ChemTrak is a medical-diagnostics company offering reliable and easy