Business Wire - May 24, 2002
"The investment group's original commitment was for $1.5 million during the first 90 days. However, based upon the progress that we have already achieved in ramping-up our operations, and our plans for accelerating our marketing and educational efforts, the group has decided to increase their investment to over $2 million," stated Anthony Cataldo, Calypte's recently appointed Executive Chairman.
This largely completes the first phase of the 12-month commitment by the investment group, well ahead of the 90-day schedule. The group has indicated an intention to pledge a minimum of $5 million over a 12-month period under terms to be mutually agreed upon. "As the company's value increases, we will evaluate the timing and ultimate need for the balance of the funding," continued Mr. Cataldo.
The new funding will require registration with the Securities and Exchange Commission, as the underlying shares initially will not be free trading. Calypte will issue $2.125 million in 8% convertible, 2-year debentures, convertible into restricted common shares at a 30% discount to the market price. Market price is defined as the average of the three (3) lowest closing bid prices of Calypte's common stock during the 20 trading days immediately preceding the date of exercise, subject to a maximum conversion price of $0.10 per share.
"We believe one of the most important reasons why our two FDA approved HIV-1 urine antibody tests have not become the global standard is because they have not been adequately promoted to the marketplace," Mr. Cataldo stated. "We therefore intend to embark upon an aggressive marketing and educational program so that at-risk individuals worldwide can have better access to testing and counseling, and thus, a better chance of avoiding this dreaded disease," Mr. Cataldo added.
"We are making excellent progress in ramping up production following the retraction of the announcement that the company was winding down operations. We have been able to bring back 38 key employees, and because we maintained full FDA compliance during the wind-down period, we are able to continue production with minimal interruption. We are currently placing orders for materials and expect to have product back on the market within a few weeks. Our key international director and insurance sales manager are back on board and they are actively contacting our distributors, governments and customers of our business," Mr. Cataldo added.
He continued, "We are putting on a `full court press' with all of our customers, and I will personally do all that I can to support the Calypte team and demonstrate to our customers that we are committed to meeting their needs for the long-run. Looking ahead, our sales plans include developing relationships with large pharmaceutical companies who can bring major distribution, significant cash and market awareness.
"The company is also continuing development of the HIV-1 urine-based Rapid Test, which is expected to provide results within 20 minutes, and will be presenting a paper in Barcelona in July at the International AIDS Conference."
About Calypte Biomedical:
Calypte Biomedical Corporation headquartered in Alameda, California, is a public healthcare company dedicated to the development and commercialization of urine-based diagnostic products and services for Human Immunodeficiency Virus Type 1 (HIV-1), sexually transmitted diseases and other infectious diseases. Calypte's tests include the screening EIA and supplemental Western Blot tests, the only two FDA-approved HIV-1 antibody tests that can be used on urine samples. When compared with existing blood-based tests, our testing algorithms are non-invasive, easier to use, less expensive and have significantly less risk than blood-based testing, and they have 99.7% sensitivity in subjects previously identified as HIV-1 infected and 100% specificity in subjects at low risk when combined with the urine-based Western Blot supplemental test. The company believes that accurate, non-invasive urine-based testing methods for HIV and other infectious diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly. Calypte markets its products in countries worldwide through international distributors and strategic partners.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our product and testing service in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K for the year ended December 31, 2001 and its subsequent filings with the SEC.
CONTACT: Sitrick And Company - Joe Bunning, 310/788-2850 SOURCE: Calypte Biomedical Corporation
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