IGENE BIOTECHNOLOGY SIGNS LETTER OF INTENT WITH BURNS PHILP FOOD, INC.
COLUMBIA, March 29 /PRNewswire/ -- IGENE Biotechnology, Inc. today announced that it signed a Letter of Intent with Burns Philp Food, Inc., San Francisco, to enter into an exclusive technology license agreement to manufacture AstaXin, IGENE's Phaffia yeast-based natural astaxanthin product. Upon execution of the Letter of Intent, Burns Philp purchased 33,334 newly issued shares of Common Stock at 75 cents per share. If the agreement is approved at a meeting of the board of directors of Burns Philp & Co., Ltd., scheduled to be held on April 7, 1993, this would trigger the purchase of an additional 166,666 shares of IGENE Common Stock at 75 cents per share. The agreement would also give Burns Philp the opportunity for additional equity investments in IGENE and the possibility of a multimillion dollar investment in a plant dedicated to the production of AstaXin. Astaxanthin is a naturally occurring pigment required in the diet of salmonid fish to produce the characteristic pink flesh of wild salmon. The current worldwide market for astaxanthin is estimated to be $100 million per year. Burns Philp Food, Inc., is the world's largest manufacturer of vinegar and through its Fleischmann's Yeast division is the largest producer of baker's yeast in North America. For the year ended Dec. 31, 1992, IGENE reported a net loss of $790,023, or 7 cents per common share, on revenues of $170,654. This compares with a net loss of $887,769, or 8 cents per common share, on revenues of $200,215 in 1991. The number of weighted average common shares outstanding in 1992 was 12,048,190 vs. 11,052,647 in 1991. -0- 3/29/93 /NOTE: AstaXin is a registered trademark./ /CONTACT: Stephen F. Hiu of IGENE Biotechnology, 410-997-2599/
CO: IGENE Biotechnology, Inc.; Burns Philp Food, Inc. ST: Maryland IN: FOD SU: LIC
IH-KD -- DC009 -- 0432 03/29/93 10:49 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 29, 1993|
|Previous Article:||TWO GIANTS OF THE TRADE SHOW INDUSTRY UNITE TO LAUNCH COMDEX/COMEXPO MEXICO; THREE SHOWS IN ONE SCHEDULED FOR MEXICO CITY, MARCH 8-11, 1994|
|Next Article:||GLOBAL NAMES BENEFIELD TO VP POST|