Bionutrics Inc. Comments on Loan Agreement.PHOENIX--(BUSINESS WIRE)--July 10, 1998--Bionutrics Inc. (Nasdaq: BNRX) reported today on its current capital-raising efforts, announcing that a second major banking institution has joined its present placement agent in the task of obtaining capital to meet the company's operating and expansion requirements. Dr. Ronald Lane, Chairman and Chief Executive Officer of the company, stated, "We are both disappointed and surprised that financing has taken much longer than we or our bankers envisioned. As we stated in our last quarterly report filed June 15, 1998 the company's current cash resources and expected cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses are not sufficient to fund its present operational needs, and additional capital is also required for the company to turn profitable in the coming months." Dr. Lane continued, "Despite the delays, we nonetheless have reason for optimism that additional investment in the company will be forthcoming. We are in serious discussions with several potential sources,and meetings are expected to continue into next week. The delay in the investment is obviously troublesome to us and to our creditors. In particular, our current secured bridge lender is asserting as·sert tr.v. as·sert·ed, as·sert·ing, as·serts 1. To state or express positively; affirm: asserted his innocence. 2. To defend or maintain (one's rights, for example). that we are overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. in the repayment of $1.5 million, since a disagreement has arisen regarding the earlier reported extension to Sept. 23, 1998." While the company is working aggressively and with a sense of urgency and expects to satisfy its current secured lender's repayment demands and bring trade creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence accounts current, there can be no assurance that additional financing, either short- or long-term, required by the company will be attainable at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. or attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. on a timely basis. Bionutrics is an emerging biopharmaceutical company founded to discover and develop novel, biologically active compounds derived from natural sources. Natural, biologically active compounds have potential applications as ethical drugs as well as functional food ingredients and dietary supplements Noun 1. dietary supplement - something added to complete a diet or to make up for a dietary deficiency diet - a prescribed selection of foods vitamin pill - a pill containing one or more vitamins; taken as a dietary supplement . Bionutrics intends to develop and market products that target these three applications, and also market commodities that result from its processing of natural products. Bionutrics' first patented product contains tocotrienols from rice bran that are currently marketed as Clearesterol(TM), an ingredient for dietary supplements. The first brand that has been introduced is evolvE(R) Advanced Cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels. car·di·o·vas·cu·lar adj. Abbr. Dietary Supplement with cholesterol-lowering, anti-oxidation and healthy blood circulation properties. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment and governmental approval processes, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
CONTACT: Bionutrics, Inc., Phoenix
Kim Visser, 602/508-0112
or
Morgen-Walke Associates, Inc.
212/850-5600
Investor Relations
Donna N. Stein/Cindy Reid
Press
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