Dynagen Announces Shareholder Approval of the Sale of Its Superior Distribution Operation; Superior Pharmaceutical Transaction Valued At $12.25 Million.Business Editors WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 29, 2000 DynaGen, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DYGN) (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). :DYGN) today announced that it has obtained shareholder approval for the sale of its wholly-owned subsidiary, Superior Pharmaceutical Company, to RxBazaar.com, a privately-held Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. . The transaction is valued at approximately $12.25 million consisting of a $4 million cash payment, the assumption of $2.25 million of senior subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and the payment of approximately $6.0 million in intercompany accounts. The sale was approved by a majority vote of DynaGen stockholders at a special meeting held on November 27, 2000. The Company's decision to divest itself of its distribution operations followed a careful review, earlier this year, of all of the Company's operations. Upon analysis, it was ascertained that the Company's combination of generic drug generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. manufacturing and distribution operations did not offer DynaGen strategic advantages in the generic drug business. On the contrary, the Company lacked the focus and capital funding necessary to become a strong competitor in either sector of the generic drug business. Following the completion of the approved sale, DynaGen will be able to focus its attention and cash flow on its core business of generic drug development and manufacturing which it conducts through its subsidiary, Able Laboratories. "The sale of Superior will be a significant step forward for the Company," stated C. Robert Cusick, Chairman and Chief Executive Officer of DynaGen, Inc. "Upon the completion of the sale, we will be able to focus our attention solely on our core business: generic drug development and manufacturing. We currently have eleven Abbreviated New Drug Applications abbreviated new drug application Pharmacology An application made in the US by a pharmaceutical company requesting authority to market a 'new' drug for which both its therapeutic indications and formulation were previously approved by the FDA in another similar (ANDAs) pending FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval and we expect that upon the sale of Superior, we will be able to intensify our R&D focus and continually feed our new product pipeline." DynaGen, Inc., is a rapidly growing developer and manufacturer of generic pharmaceuticals. The focus of the Company is to develop products that offer attractive market opportunities within selected niche markets of the generic drug industry. In addition to the five products it is currently selling, the Company has eleven products in various stages of FDA approval while the Company's drug development program is currently working on many diverse and dynamic products. The Company is currently transitioning from a manufacturing and distribution company into a sole development and manufacturing entity. DynaGen, Inc. is traded under the symbol "DYGN" on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. and the Boston Stock Exchange The Boston Stock Exchange (BSE) is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834. On October 2nd, 2007 Nasdaq agreed to acquire BSE for $61 million. (OTCBB:DYGN) (BSE:DYGN). As part of the Company's commitment to its new strategic focus, the Company will change its name from DynaGen, Inc. to Able Laboratories, Inc. shortly. RxBazaar.com is a privately held corporation Noun 1. privately held corporation - a corporation owned by a few people; shares have no public market close corporation, closed corporation, private corporation . The Company is focused on the creation of targeted business-to-business e-commerce relationships concentrating on an extensive online pharmaceuticals marketplace. The goal of the Company is to bring trading - both on- and off-line - closer to the local pharmacy. The Company currently maintains a customer base of 5,000 pharmacies. 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 1955 provides a "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. " for forward-looking Statements. Certain information included in this news release (as well as information included in oral statements of other written statements made or to be made by DynaGen, Inc./Able Laboratories) contain statements that are forward-looking, such statements related to anticipated future revenues of the companies, success of current product offerings, research and development efforts and the timeliness of Federal Drug Administration (FDA) filings and approvals. There is no assurance that the company will achieve the sales levels that will make the operation profitable or that FDA filings and approvals will be completed or obtained as anticipated. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of DynaGen, Inc./Able Laboratories. Failure or delay in completing applications and obtaining FDA approval for new drug products would materially adversely affect the Company's business. For a description of additional risks, and uncertainties, please refer to DynaGen, Inc. or Able Laboratories, filings with the Securities and Exchange Commission, including Forms 10K and 10Q. |
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