RICHMOND HILL, Ontario, May 10, 2002 (BW HealthWire) -- The Board of Directors of AlphaRx, Inc. (OTCBB:ALRX) announced today it secured private placement financing, on May 1, 2002, for up to USD$4,567,500 when the funding is completed. The Company has authorized the sale of 3.5 million common shares at USD$0.185 cents per share to be issued pursuant to Rule 144. For each share purchased, the subscriber will receive a total of two (2) warrants offering the subscriber a call to purchase 1 additional common share per warrant at USD$0.37 per share until December 31, 2002. The second warrant bears a strike price of USD $0.75 per share until June 30, 2003. The Company can raise an additional $3,620,000 through exercising warrants based on the terms of the agreement.
The Company has re-evaluated its core strengths and will continue to focus on the development of therapeutic products using proprietary drug delivery technologies. Management has withdrawn from the proposed acquisition of a privately held US pharmaceutical manufacturing company as announced on March 26, 2002. The acquisition was expected to close last month. The Company has shifted its original strategy of pursuing manufacturing acquisition opportunities to complement existing product lines to a new marketing plan of establishing strategic partners and alliances for manufacturing, licensing and distribution.
AlphaRx Inc. is an emerging pharmaceutical company that develops and markets innovative therapeutic products based on its proprietary Bioadhesive Colloidal Dispersion (BCD) drug delivery technology. AlphaRx's BCD technology improves the bioavailability and bioperformance of poorly water-soluble drugs to provide enhanced medical benefits and competitive commercial advantages. For more information on the company visit our website at www.alpharx.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security. The shares and warrants have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from registration requirements. AlphaRx has agreed to file a registration statement covering the resale of the shares and the shares issued upon exercise of the warrants.
Safe harbor statement under the Private Securities Litigation Reform Act of 1995
This news release may contain forward-looking statements within the meaning of Section 37A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involved risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including commercial acceptability of the Company's products, the Company's ability to continue to develop new products and to enhance existing products, the ability of the Company to meet its financial projections, and general economic conditions. The Company undertakes no obligation to publicly update or revise forward-looking statements whether as a result of new information or otherwise.