Printer Friendly

DRUG SCREENING SYSTEMS ANNOUNCES SALE OF 625,000 COMMON SHARES, 1-FOR-10 REVERSE STOCK SPLIT; REPORTS THIRD QUARTER/NINE MONTHS RESULTS

 BLACKWOOD, N.J., May 11 /PRNewswire/ -- Drug Screening Systems, Inc. (NASDAQ: DRUG), today announced that on April 30, 1993, it sold 625,000 shares of its common stock for an aggregate consideration of $250,000, or 40 cents per share, to Tepnel Diagnostics PLC of Manchester, U.K., pursuant to a private offering under Regulation S of the Securities Act of 1933. In connection with this offering, Anthony Ian Newman, a director of Tepnel, has been appointed to the company's board of directors.
 The company also announced that, as authorized by its shareholders at a special meeting on April 22, 1993, its board of directors has approved a one-for-ten reverse stock split, effective May 6, 1993. On such date, the company's authorized shares were changed from 20,000,000 shares with a par value of $.001 to 2,000,000 shares with a par value of $.01; each outstanding old share was reclassified and combined into one-tenth of a new share; and the number of authorized shares of the new common stock was increased to 20,000,000. The board further determined that May 13, 1993, has been designated as the record date for its anticipated $3.5 million rights offering, which will consist of 700,000 units offered at a subscription price of $5 per unit. Each unit will consist of one share of common stock and one 3-year redeemable warrant exercisable at $5.50 per share. The subscription period will not begin until a registration statement currently on file under the Securities Act of 1933 is declared effective.
 The company also today reported results for the third quarter and nine months ended March 31, 1993.
 The company reported revenues of $533,918 and $1,181,566 for the three- and nine-month periods ended March 31, 1993, compared to revenues of $143,073 and $338,037 for the three- and nine-month periods ended March 31, 1992.
 The company's net loss for the three- and nine-month periods ended March 31, 1993, was $803,433 or 90 cents per share, and $2,604,241 or $2.93 per share, respectively, compared to $650,191, or 76 cents per share, and $1,801,407, or $2.29 per share, for the three- and nine-month periods ended March 31, 1992. All per share amounts reflect the May 6 one-for-ten reverse split.
 "We are pleased to report the 250 percent increase in revenues for the nine-month period ended March 31, 1993 compared to the prior year, reflecting a redirection of our marketing to concentrate on areas we believe will generate sales at a faster rate of growth," Gary Nacht, senior vice president and CFO, said. "In addition, our operating costs continued to decline in comparison to the preceding quarter as we streamline our operations. We expect our operating costs will continue to decline during the current quarter," he added.
 Drug Screening Systems is a biochemical diagnostic company engaged in the development, manufacture and marketing of on-site screening tests for drugs of abuse. The company's products are currently sold under the trademarks Mach IV Screen(R) and Microline(R) Screen in the United States and throughout Europe, South America and the Far East through distributors and sales agents.
 DRUG SCREENING SYSTEMS, INC.
 Comparative Analysis
 (Unaudited)
 Periods ended Three Months Nine Months
 March 31 1993 1992 1993 1992
 Revenues $ 533,918 $ 143,073 $ 1,181,566 $ 338,037
 Net loss $(803,433) $(650,191) $(2,604,241) $(1,801,407)
 Net loss per share (A) $(.90) $(.76) $(2.93) $(2.29)
 Average shares
 outstanding (A) 889,785 852,500 889,785 786,220
 (A) -- All per share amounts reflect the May 6 one-for-ten reverse split.
 -0- 5/11/93
 /CONTACT: Gary Nacht, senior vice president and CFO of Drug Screening Systems, 609-228-8500/
 (DRUG)


CO: Drug Screening Systems, Inc.; Tepnel Diagnostics PLC ST: New Jersey IN: MTC SU: ERN

GK-LR -- NY026 -- 6929 05/11/93 10:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 11, 1993
Words:651
Previous Article:FIRST BRANDS EARNINGS INCREASE IN FISCAL 1993 THIRD QUARTER
Next Article:THE TURNER CORPORATION ANNOUNCES SIGNIFICANT RISE IN FIRST QUARTER RESULTS FROM OPERATIONS
Topics:


Related Articles
ULTIMAP ANNOUNCES THIRD QUARTER RESULTS
KRELITZ INDUSTRIES ANNOUNCES THIRD QUARTER RESULTS
KRELITZ INDUSTRIES ANNOUNCES THIRD QUARTER RESULTS
LADD REPORTS STRONG THIRD QUARTER SALES GAIN
ALLIS-CHALMERS CORPORATION REPORTS RESULTS
DRUG SCREENING SYSTEMS COMPLETES $3.5 MILLION RIGHTS OFFERING; REPORTS PRELIMINARY FOURTH QUARTER REVENUES AND FILES FOR RELISTING ON NASDAQ
DRUG SCREENING SYSTEMS REPORTS FOURTH QUARTER, 12 MONTHS RESULTS
VAALCO REPORTS THIRD QUARTER EARNINGS
DRUG SCREENING NEW PRODUCT FORMAT TO BE LAUNCHED JUNE 1
XATA CORPORATION ANNOUNCES 2-FOR-3 REVERSE STOCK SPLIT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters