PHOENIX--(BUSINESS WIRE)--Dec. 23, 2002--
Company Will Positively Restate Earnings for the Nine Months Ended
September 30, 2002, Reducing the Previously Reported Loss for the
Period by $0.04 Per Share
Vital Living Inc., (OTCBB:VTLV) the Physician Nutraceutical Company(SM), today announced that it has completed a $1,360,000 private placement of shares of common stock, issuing 1,360,000 shares of common stock at a purchase price of $1.00 per share.
In connection with the private placement, Vital Living also issued a like amount of series B and series C warrants to purchase shares of common stock to the investors. These warrants have an exercise price of $1.64 and $2.14 per share, respectively, and have a five year term. The Company has the right to demand redemption of the warrants under certain conditions. Vital Living expects to use the net proceeds from the offering for working capital and general corporate purposes.
Vital Living has filed a registration statement covering the resale of the shares issued and the shares issuable under the warrants.
Brad Edson, CEO of Vital Living, commented, "We elected to raise capital at this time to improve our working capital balances as we continue to develop Vital Living's distribution channels and add to our line of cardiac nutraceutical products. The capital will help us finance inventory and receivables growth resulting from our expansion activities, including the recently completed distribution agreements of Essentum(TM) with Arizona Heart Institute; National Provider Network, one of the nation's largest PPOs; and Canyon Ranch Health Resort's Tucson, AZ facility."
The Arizona Heart Institute (AHI), based in Phoenix, is a multi-specialty outpatient facility dedicated to the prevention, detection, and treatment of cardiovascular disorders. AHI has the distinction of being the nation's first freestanding outpatient clinic built solely to combat heart disease and specializes in today's most advanced non-surgical interventional therapies that replace traditional scalpel and suture treatment for heart and blood vessel disease.
National Provider Network and its affiliates operate a preferred provider network which consists of approximately, 300,000 physicians and 30,000 participating ancillary facilities and hospitals.
Canyon Ranch Health Resort's physicians and medical staff will prescribe Vital Living's supplement products for their patien
ts in their leading Wellness and Prevention programs in their Tucson, AZ location.
Separately the Company also announced today that it had filed an amendment to its financial statements for the second and third fiscal quarters. The restatement was the result of the recalculation of the value of the discount on the Series A Preferred Stock issued during the first and second quarters of 2002, and the related amortization of such discount during the second and third quarters of 2002. The restatement was the result of the recalculation of the value of the discount on the Series A Preferred Stock issued during the first and second quarters of 2002 and the related amortization of such discount during the second and third quarters of 2002. The result of the restatement was to reduce the net loss by $216,194, or $0.02 per common share, for the three and six months ended June 30, 2002, respectively. Additionally, the result of the restatement reduced the net loss for the period by $354,692, or $0.03 per common share, and $570,886, or $0.04 per common share, for the three and nine months ended September 30, 2002, respectively. The results of these restatements had no effect on the net loss from operations or total shareholders' equity for any periods previously reported.
About Vital Living
Vital Living develops and markets evidence-based nutraceuticals formulated by physicians for distribution through physicians. The Company is developing and testing nutraceuticals in collaboration with leading medical experts based on the best available scientific evidence.
Vital Living's nutraceuticals are designed to be incorporated by physicians into a standard physician/patient program, supported by a specially designed compliance regimen. The Company's initial area of focus is cardiovascular health, the leading health concern in America affecting 60 million consumers. Essentum(TM) is currently being endorsed and prescribed at the Arizona Heart Institute as part of a comprehensive cardiovascular health program. Essentum N.P.(TM) is the Company's non-prescription formula of its initial Essentum(TM) cardiovascular product.
For more information please visit our website at www.vitalliving.com.
Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the company's ability to continue to successfully market and provide its products and services and maintain their effectiveness, the continuation of the arrangements with the company's product development partners, the ability of the company to meet its financial projections, and general economic conditions. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.