SOURCE: Biozone Pharmaceuticals, Inc.
ENGLEWOOD CLIFFS, NJ--(Marketwired - December 24, 2013) - BioZone Pharmaceuticals, Inc. (OTCBB: BZNE) announced today that it has completed an enhancement of its balance sheet by eliminating remaining outstanding convertible notes. In the recent transaction, holders of convertible notes with approximately $2.5 million of principal and accrued interest exchanged their securities for shares of common stock. OPKO Health Inc. (NYSE: OPK), a principal shareholder of BioZone Pharmaceuticals and one of the note holders that converted its notes, expressed the view through its Chairman and CEO, Dr. Phillip Frost, that it is optimistic that the planned acquisition of Cocrystal Discovery will enhance shareholder value and enhance BioZone's future prospects as a high growth biotech company.
In recent weeks, BioZone Pharmaceuticals concluded numerous corporate actions to improve its balance sheet, including but not limited to; raising $3.5 million of capital through the issuance of preferred stock followed by the exchange of that preferred stock for shares of common stock, repaying promissory notes, reducing outstanding convertible debt through repayment and conversions and repaying remaining outstanding trade liabilities. Management successfully negotiated the complete settlement of the two outstanding lawsuits for a combination of stock and cash and negotiated a settlement of a $2 million product recall liability with Matrixx Initiatives for $700,000. In addition, the Company repaid $1 million to MusclePharm Corporation of its original $2 million convertible note investment. MusclePharm converted the balance of its promissory note into common stock.
On November 13, 2013, the Company announced that it entered into an agreement to sell all its operating assets, including the QuSomes, HyperSorb and EquaSomes drug delivery technologies, to MusclePharm in exchange for 1,200,000 shares of MusclePharm's common stock. On November 26, 2013, the Company announced that management agreed to terms and signed a Letter of Intent to merge with Cocrystal Discovery, Inc., a privately-held, biotechnology company developing antiviral therapeutics for human diseases. Cocrystal Discovery has breakthrough technologies that enable the creation of first- and best-in-class antivirals. Biozone Pharmaceuticals expects to close both transactions in the next week.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements including the closing of the MusclePharm sale and our ability to consummate a merger with Cocrystal Discovery, Inc. Forward-looking statements also are prefaced by words such as "expect," "plan," "intend" and similar words. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the ability to finalize the agreement with Cocrystal Discovery, Inc. and receipt of satisfactory fairness opinions.