DALLAS, Nov 29, 2004 (BUSINESS WIRE) -- Mosaic Nutraceuticals (Pink Sheets:MCNJ) is pleased to announce that they have signed an international distribution agreement with AHB Trading Limited, SA. This agreement gives AHB an exclusive for the Mosaic product lines in the following areas Mexico, Central and South America.
Mosaic expects to start shipping orders of its flagship products Celaprix and Lipotrene to AHB within the next 45 days. As part of this agreement, AHB also has an option to exercise warrants to purchase up to 3.5 million shares of Mosaic common stock for $4 million dollars.
President of Mosaic Nutracueticals, Charles Townsend, said, "We are extremely excited about this distribution agreement with AHB. We believe our products are extremely effective, highly unique and very appealing to the consumers in the regions that AHB covers. We further believe that the if AHB meets their initial sales projections for Celaprix and Lipotrene that we should see a substantial increase in our shareholder value in the near future."
Celaprix contains a proprietary combination of two main ingredients called celadrin and boswellian extract. Celadrin has been clinically tested and shown to help reverse osteoarthritis, enhance joint ROM and reduce pain (the results of this clinical study were published in the Journal of Rheumatology). Osteoarthritis is considered "wear and tear" arthritis and is a major health problem affecting America. It is currently estimated that 20.7 million Americans currently suffer from osteoarthritis and that osteoarthritis is responsible for a minimum of 7 million physician visits per year.
Lipotrene is a proprietary, sugarfree, low-carbohydrate candy chew that contains a specific active ingredient that has been shown in clinical studies to reduce cholesterol levels naturally. It is estimated that 1 in 5 Americans suffer from High Cholesterol and that $30 billion is spent annually on Cholesterol lowering products.
Mosaic Nutraceuticals is located in Dallas, Texas and its mission is to enhance and improve the quality of life of its consumers through cutting-edge, highly unique dietary supplements and products. Mosaic plans to become a market leader in the nutritional field and will strive to grow its product line through dynamic innovations and acquisitions. The categories Mosaic will focus on include: Osteoarthritis, pain relief; low carbohydrate functional foods, cholesterol health, weight-loss/appetite suppression, anti-aging and general wellness.
Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are 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. Forward-looking statements deal with the company's current plans, intentions, beliefs and expectations and statements of future economic performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from what is currently anticipated. Factors that could cause or contribute to such differences include those discussed from time to time in reports filed by the company with the Securities and Exchange Commission. The company cannot guarantee its future results, levels of activity, performance or achievements.