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ESCAGENETICS FILES S-2 REGISTRATION STATEMENT FOR OFFERING OF 1.8 MILLION SHARES OF COMMON STOCK

 SAN CARLOS, Calif., July 29 /PRNewswire/ -- ESCAgenetics Corp. (AMEX: ESN) today announced that it has filed a Form S-2 registration statement with the Securities and Exchange Commission in connection with an offering by the company of 1.8 million shares of the company's common stock. The maximum aggregate proceeds of the offering would be $8.1 million. The shares are offered by the placement agent, Reich & Co. Inc., on a "best efforts basis."
 The company also said that it completed a $1 million financing in which it sold a convertible debenture bearing interest at 10 percent per annum. The debenture converts automatically into 200,000 shares of common stock of the company if it is not paid on or prior to Dec. 31, 1993. The purchaser and the agent in the transaction received warrants to purchase a total of 120,000 shares of common stock.
 According to William J. Koenig, ESCAgenetics executive vice president, if the maximum number of shares is purchased in the current offering, "ESCAgenetics expects that approximately $3 million will be allocated to continuing R&D relative to production of Taxol, including the Taxol scale-up collaboration with Genencor, and approximately $2 million to R&D regarding production of other pharmaceuticals through plant cell tissue culture. Approximately $1 million will be used in the hybrid TPS commercialization program and a lesser amount for the commercialization of date palms in the Middle East and for the plant cell tissue culture scale-up of natural vanilla flavorings."
 ESCAgenetics is a publicly traded company that develops and produces high-value plant-derived products for the pharmaceutical and food processing industries.
 The registration statement relating to the 1.8 million shares of common stock has been filed with the Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933 may be obtained from William J. Koenig, ESCAgenetics Corp., 830 Bransten Rd., San Carlos, CA 94070, 415-595-5335.
 -0- 7/29/93
 /CONTACT: Raymond J. Moshy, president and chief executive officer, or William J. Koenig, executive vice president, of ESCAgenetics Corp., 415-595-5335/
 (ESN)


CO: ESCAgenetics Corp. ST: California IN: MTC SU:

LM-SB -- SE003 -- 7091 07/29/93 08:00 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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