Harvard Scientific Saves Its Shareholders Over $1-Million in Springrange Settlement
Business Wire - September 25, 1998 09:17
LAKE MARY, Fla.--(BUSINESS WIRE)--Sept. 25, 1998--Harvard Scientific Corp., (OTC BB:HVSF) a Nevada corporation, announced today that it has reached an agreement to settle all litigation with Springrange Investment Group, Ltd. ("Springrange"), whereby all litigation matters between the parties have been dismissed with prejudice and whereby mutual and general releases have been executed by the parties.
The agreement provides for a one time cash payment of $1.8-million by the Company for full settlement of the $2,550,000 of convertible debentures still held by Springrange, representing a savings of $750,000 for the Company on the principle balance alone. Combined with the interest and penalties accrued on the debentures to date, as well as all other potential associated fees and costs from settling this dispute, the Company realizes a savings of over $1-million and an increase in its book value per common share of over 85%.
Mr. Curtis A. Orgill, Corporate Treasurer and Chief Financial Officer, stated that "the shareholders of this Company should be very pleased to know that this matter has been settled and that the Company's balance sheet has been significantly enhanced due to this settlement. Currently, on a proforma basis, total current liabilities total $96,036 vs. $2,842,958, as reported in the Company's Form 10-Q for the second quarter ended June 30, 1998 (Unaudited), and total stockholders equity has increased to $6,828,711 vs. $4,081,789, over the same reporting period. The Company's book value per common share has increased to $0.93 from $0.50 per share over the same period."
Mr. Thomas E. Waite, the Company's President and Chief Executive Officer stated, "I am extremely happy with the ability exhibited by our legal team to favorably settle and/or cause to be dismissed the majority of all the Company's litigation matters and thus provide management the time to focus its energy in a more positive manner towards successfully marketing the Company's products. I am also exceedingly pleased with the current progress of all of our products throughout their respective clinical phases. At this point in time, I feel especially confident that our female product, indicated for female sexual arousal disorder ("FSAD"), will be the first viable treatment product on the market based on our preliminary clinical research."
Harvard Scientific Corp., is a biopharmaceutical drug development company that has developed orally and topically administered treatment products for male and female sexual disorder and an intrameatally administered treatment product for male sexual disorder. The intrameatally delivered treatment product as well as the topically applied treatment products utilize the Company's patented intellectual property of lyophilized liposomal delivery of Prostaglandin E-1 ("PGE-1"). The orally administered, lyophilized liposomal delivery of Apomorphine, treatment product for male and female sexual disorder is contained in a capsule and is swallowed by the patient. This capsule is designed to pass through the stomach without degradation or uptake of the drug and into the small intestine whereby the Apomorphine is then gradually released. The Company plans to license these products to pharmaceutical companies for worldwide distribution upon approval by the U.S. Food and Drug Administration and/or other foreign regulatory agencies.
Prostaglandin E-1 is a naturally occurring vasodilator originally approved by the U.S. Food and Drug Administration for intravenous infusion in neonates. In 1995, PGE-1 was approved by the FDA for use in Pharmacia & Upjohn Inc.'s (NYSE: PNU) Caverject, which is administered by needle injection as a treatment for male erectile disorder. In November 1996, Vivus, Inc.'s (NASDAQ: VVUS) MUSE solid pellet delivery system was approved by the FDA. Recently, the FDA approved PGE-1 again by needle administration via Edex, (Schwartz-Pharma). Viagra, Pfizer, Inc.'s (NYSE: PFE) oral medication treatment was approved by the FDA in March, 1998. Zonagen Inc. (NASDAQ: ZONA) has in development an oral treatment product as well. Apomorphine, developed in 1869, is not an opiate and therefore not addictive and has been effective as a therapeutic agent for Parkinson's disease and as a treatment for animal and human ingestion of toxins. It has also shown to be an effective agent for inducing male erections. The Company believes that its products will represent a substantial treatment advantage over other delivery systems currently being utilized in the industry.
From time to time the Company may issue forward looking statements which involve risks and uncertainties. This statement may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results could differ and any forward looking statements should be considered accordingly.
CONTACT: Harvard Scientific Corp., Lake Mary
Michael Snell, (407) 324-1606
www.harvardscientific.com
or
Martin E. Janis & Co., Chicago
Hal Schweig, (312) 943-1100
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