Gum Tech announces warrant redemption.
Each warrant, redeemable at 1 cent, is exercisable for purchase of one share of the company's common stock at $7.50 per share. The warrants were issued at the company's April 24, 1996, initial public offering.
Proceeds from the redemption will be for a second manufacturing and warehouse facility to meet the needs of increased demand resulting from several new large contracts. These contracts will outstrip the coating and packaging capacity of the current facility.
According to Gum Tech President and Chief Executive Officer Jerry Kern: ``We find ourselves in the enviable position of approaching full capacity at our state-of-the-art 28,000-square-foot facility, and we must explore our manufacturing options immediately in order to meet pending new business. Calling the options will give us the additional working capital needed for this manufacturing expansion.''
For further information, contact Jeff Bouchy, Gum Tech chief financial officer, at 602/277-0606.
Gum Tech distributes its nutrient and therapeutic chewing-gum products to more than 80 percent of the nation's top drugstore chains, including Walgreens, Osco, Thrifty-Payless and Sav-On. The company also enjoys a strong nationwide position in convenience- store chains and health-food stores and has entered major supermarket chains.
In addition, Gum Tech is increasing distribution and further expanding its presence in international markets, including Europe and the Far East. -0-
Gum Tech's future results of operations and other forward- looking statements contained in this document, in particular statements concerning plant efficiencies and capacities, capital spending, research and development and other expenses, involve a number of risks and uncertainties. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: business conditions and the general economy; competitive factors, such as rival gum manufacturers' pricing and marketing efforts; availability of third-party material products at reasonable prices; risk of nonpayment of accounts receivable; risks of inventory obsolescence due to shifts in market demand; timing of product introductions; and litigation involving product liabilities and consumer issues.
CONTACT: Gum Tech International Inc., Phoenix
Jerry Kern, 602/277-0606
Aldrich & Associates, Long Beach, Calif.
John DeNovi, 562/436-5156
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|Date:||Jun 20, 1997|
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