Easton Pharmaceuticals Inc.
OTC : EAPH

September 21, 2011 09:00 ET

Easton Pharmaceuticals Announces Receiving Two Financing Proposals

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2011) - Easton Pharmaceuticals, (OTC:EAPH) a specialty pharmaceutical company that designs, develops, and markets a premium array of topically-delivered therapeutic healthcare products announced it has received and entered into discussions for two financing proposals from 2 private investment firms and accredited investors.

Easton has entered into discussions and reviewing 2 possible options available for financing. The first proposal and option presented after meetings is a conditional offer from a private investment firm and accredited investor under the condition the company first initiate the process to become a reporting issuer with the Securities and Exchange Commission. The potential investor is classified as an accredited investor based in NY State who has financed numerous public companies over the last several years. The financing is conditional and involves filing a form 10 or other type of registration statement with the SEC which entails undertaking a complete audit of its financials. Presently the company is classified as a current issuer with the OTC exchange (OTC:EAPH). The difference with being a current issuer under the present exchange is that the company presently uses a securities attorney to certify and sign off on its corporate year end and quarterly financial statements. Should the company file a form 10 and become a reporting issuer under SEC jurisdiction it would have its financial statements certified and signed off by an auditor instead of a securities attorney.

The second proposal and option presented is again from a private investment firm focused on investing in small and mid capitalized companies who is willing to finance the company via a 504 Reg D offering. Such a financing will involve the filing of a form D with the Securities and Exchange Commission with various conditions that both the company and investor must meet including investment intent by the investor. Under this option the company can raise a maximum of $1 million for every 12 month period and can be canceled at any time with no penalties or obligations.

The company is presently giving serious consideration to both proposals and options with its consultants and attorney as well as options by other firms. The 504 option is considered a quicker form of financing, but not necessarily considered a better option as only companies considered non reporting with the SEC can accept a 504 type financing and is limited to the $1 million dollar amount per 12 month period. Financing is required by the company to fulfill its corporate objectives and business plan which includes being able to market its main flagship product Viorra in various parts of the world as well as to initiate and enter into clinical North American Trials. Funding is also required for the filing of patents where the company previously advanced a retainer to a NY patent firm. Neither of the options is a guarantee that the Company will be able to close on any terms acceptable to the company but believes both are considered very good and credible. Additional details to be disclosed as they become available

About Easton Pharmaceuticals Inc

Easton Pharmaceuticals is a specialty pharmaceutical company that designs, develops, and markets a premium array of topically-delivered therapeutic healthcare products, focused on skin and circulatory conditions that impact a large and expanding number of consumers including health issues related to male and female sexual dysfunction, scar and stretch marks, cellulite and varicose veins, the world market for these conditions is in excess of $10 billion.

The company's proprietary gel formulation is an innovative and unique transdermal delivery system. Easton Pharmaceuticals' flagship product, VIORRA, is an over-the-counter aid for the treatment to restore and improve vaginal moisture and elasticity which has a very positive effect on women's sexual desire and arousal, FSAD (Female Sexual Arousal Disorder) the world market for these female conditions are in excess of $2 billion. VIORRA is a topical, daily-use product classified by the FDA as containing Generally Recognized as Safe ingredients.

For More Information Visit http://www.eastonpharma.com

Safe Harbor

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding of discussion, the words "pleased," "plan," "confident that," "believe," "expect," or "intent to" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing and other risks and uncertainties as stated in the company's financial reports and filings.

Copyright ©2011 Easton Pharmaceuticals Inc. All rights reserved. Easton Pharmaceuticals, Easton Pharma and the Easton Pharmaceuticals logo, and all other Easton Pharmaceuticals company, product, and services names and slogans are trademarks or registered trademarks of Easton Pharmaceuticals Inc.

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