SOURCE: Biozone Pharmaceuticals, Inc.
ENGLEWOOD CLIFFS, NJ--(Marketwired - December 02, 2013) - BioZone Pharmaceuticals, Inc. (OTCQB: BZNE) announced today that it has enhanced its balance sheet significantly by eliminating outstanding convertible preferred stock. In the recent transaction, holders of convertible preferred stock, with a stated value of $3.5 million and a 10% dividend, exchanged their securities for shares of common stock. Key holders expressed the view that the recently announced merger with Cocrystal Discovery, Inc. is a significant positive development for the Company.
In recent weeks, the Company concluded numerous corporate actions to improve its balance sheet, including but not limited to: raising $3.5 million of capital by issuing the recently converted preferred 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 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 to MusclePharm Corporation $1 million of its original $2 million convertible note investment. MusclePharm converted the balance of its investment into common stock.
On November 13, 2013, the Company announced that it entered into an agreement to sell all of its operating assets, including the QuSomes, HyperSorb and EquaSomes drug delivery technologies, to MusclePharm in exchange for 1,200,000 shares of MusclePharm 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 first- and best-in-class antiviral therapeutics for human diseases.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements including the closing of the sale of assets to MusclePharm Corporation and our acquisition of 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 and we undertake no duty to update them. 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 execute definitive agreements with MusclePharm Corporation and Cocrystal Discovery, Inc. and our receipt of satisfactory fairness opinions.