1st Jul 2008 07:00
PuriCore Withdraws from Bankruptcy Auction for ECT Patents and Separately Announces $3 Million in New Debt
MALVERN, PENNSYLVANIA, AND STAFFORD, UK, 1 July 2008 - PuriCore (LSE: PURI), the life sciences company focused on the control of infectious pathogens with its novel, safe antimicrobial technology, today announces that it chose to cease bidding in the bankruptcy auction for the patents of Electro-Chemical Technologies Ltd. ("ETC") (pending patent acquisition announced 20 February 2008). The bidding price for the assets exceeded the Company's valuation, removing the original opportunity the patents belied. The bankruptcy court approved the sale of the assets to private investors yesterday.
PuriCore also announces today that is has strengthened its balance sheet with the addition of $3 million in the form of an unsecured promissory note (the "note"). The note bears interest at the rate of 12% per annum and is repayable by 31 December 2008. In conjunction with the financing, the lender was issued 247,100 warrants to purchase PuriCore Ordinary Shares (representing 0.16 per cent of the Company's current issued share capital) at a price of 21.25 pence per share (being the volume weighted average price of PuriCore Ordinary Shares over the five trading days preceding the date on which the note was issued).
Greg Bosch, CEO of PuriCore, said:
"Our initial plan was to expand our patent portfolio by purchasing these assets out of the bankruptcy process at the right price. As these patents are not necessary for growth and development of our existing core businesses and emerging markets, we withdrew from the auction when the bids exceeded our valuation of the assets. Separately, the addition of $3 million to our balance sheet is in line with PuriCore's stated strategy of using debt as one means of continuing to fund the working capital requirements of our rapidly growing business. We look forward to delivering positive H1 2008 results and expect to issue a trading update later this month."
Enquiries:
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Ben Brewerton |
Greg Bosch, CEO |
|
Susan Quigley |
Keith A. Goldan, CFO |
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Financial Dynamics |
PuriCore |
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+44 (0) 20 7831 3113 |
+1 484 321 2700 |
About PuriCore
PuriCore plc (LSE: PURI) is a life sciences company focused on developing and commercialising proprietary, green products that safely, effectively, and naturally kill contagious pathogens. PuriCore's technology provides a solution to a broad range of markets that depend upon controlling contamination, including food safety in retail and foodservice, medical device disinfection, wound therapy, and hospitality. The Company's proprietary technology mimics the human body's production of the natural antimicrobial hypochlorous acid, which is highly effective in killing bacteria, viruses, and fungal spores. Deploying hypochlorous acid solutions as soaks, sprays, mists, and in other forms, PuriCore's technology is designed to limit the spread of infectious disease, including major public health threats of M. tuberculosis, MRSA, E.coli, Norovirus, Avian Influenza, HIV, Polio Virus, Helicobater pylori, and Legionella. PuriCore is headquartered in Malvern, Pennsylvania, with offices in Stafford, UK.
To receive additional information on PuriCore, please visit our website at www.puricore.com, which does not form part of this press release.
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
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