Nutrition Medical, Inc. to Sell its Critical Care Nutrition Product Lines to GalaGen Inc.MINNEAPOLIS--(BUSINESS WIRE)--Sept. 2, 1998--Nutrition Medical, Inc. (Nasdaq: NMED NMED New Mexico Environment Department NMED Nuclear Materials Event Database NMED National Maritime Event Database ) today announced that it had signed an agreement with GalaGen Inc. ("GalaGen") of Arden Hills, Minnesota Arden Hills is a city in Ramsey County, Minnesota, United States. The population was 9,652 at the 2000 census. Bethel University and Seminary is located in the city of Arden Hills. Also, the campus of Northwestern College is partially in Arden Hills. to sell all the assets associated with its Critical Care Nutrition business in exchange for $175,000 in cash and $625,000 of GalaGen shares of common stock. With the sale of these product lines to GalaGen, the Company has only one critical care nutrition product that it continues to sell and which is the subject of a patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit lawsuit: see procedure; tort. with Novartis, Inc. The sale is subject to certain closing conditions and approval by the Company's shareholders. The Company expects that a shareholder meeting to approve the sale shall occur in the fourth quarter of 1998. The Company also announced that, effective immediately, the Company had entered into an exclusive marketing agreement with GalaGen for domestic distribution of these product lines. The marketing agreement will be in effect until the closing of the sale. George Kline, Director of the Company, said that "With the sale of the Critical Care Nutrition Product Line, the Company will no longer have any significant continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . It is expected that the Company will look for new opportunities to re-deploy its assets. Although no new opportunities have been identified as yet, the Company expects that this will occur in the next six to nine months. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including risk associated with regulatory approvals and other risks described from time to time in reports filed by Nutrition Medical with the Securities and Exchange Commission, including but not limited to its most recent Annual Report on Form 10-KSB. CONTACT: Nutrition Medical, Inc. Rich Hegstrand, 612/551-9595 |
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