Chairman Alec Keith to invest $1 million in Polydex Pharmaceuticals at market price.SCARBOROUGH, Ontario--(BUSINESS WIRE)--July 2, 1997-- Funds will boost capacity of best-selling product by 50 percent, reduce costs by 20 percent open up new production lines for backlogged pharmaceuticals Polydex Pharmaceuticals Limited (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : POLDF) announced today that Chairman Alec Keith will invest US$1 million in restricted common shares of the company at US$6.2625 per share, equivalent to the average closing price over the five trading sessions ended June 30, 1997. President George G. Usher said that the Keith funds would be immediately used to expand Canadian production of iron dextran iron dextran Cosmofer (UK), DexFerrum, InFeD Pharmacologic class: Trace element Therapeutic class: Iron supplement Pregnancy risk category C FDA Boxed Warning, the company's best-selling pharmaceutical. Usher estimated that iron dextran production in Scarborough would increase by at least 50 percent with production costs reduced by a minimum of 20 percent using new equipment.Usher also stated that Polydex would resume production of DEAE DEAE Diethylamino Ethanol dextran dextran /dex·tran/ (dek´stran) a high-molecular-weight polymer of d-glucose, produced by enzymes on the cell surface of certain lactic acid bacteria. and cellulose sulfate Cellulose sulfate was a candidate microbicide that had been stopped for regulatory approval to be used therapeutically in the prevention of the spread of sexually transmitted diseases. in new facilities funded by the Keith investment. Lack of space and equipment has created a backlog of open orders for these products, he said. "I am delighted to demonstrate my faith in the future of Polydex by making this cash investment on the same terms as any public investor," Dr. Keith stated. "In my judgement, the company is now poised to fulfill the promise it has had for many years, a promise constrained by lack of working capital. My cash infusion, coming on top of record sales, should help solve that problem and take us to the next level," he concluded. Dr. Alec D. Keith, chairman since November 1996, was chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Zetachron Inc. from 1984 until it was merged into Watson Pharmaceuticals in 1991. He served as chairman of Watson until 1996 and remains a director. Previously he won international recognition for developing transdermal patch transdermal patch: see skin patch. technology at Key Pharmaceuticals. Polydex Pharmaceuticals Limited researches, develops, manufactures and markets biotechnology based products for veterinary, human pharmaceutical and cosmetics industries worldwide. -0- Note: The statements in his press release may contain certain forward-looking statements. Actual events or results may differ from the company's expectations. In addition to the matters described in this press release, future actions by the Food and Drug Administration or equivalent foreign regulatory authorities, results of pending or future clinical trials, as well as risk factors listed in the company's SEC filings, may affect the actual results achieved by the company. CONTACT: Polydex Pharmaceuticals Limited, Scarborough George G. Usher, 416/755-2231 76145.1165@compuserve.com or The Cavior Organization Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Warren J. Cavior, 212/687-6070 caviorg@aol.com |
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