SOURCE: Easton Pharmaceuticals, Inc.

February 10, 2014 09:13 ET

Easton Pharmaceuticals Is in Receipt of Proposal to Increase Current Financing; Provides Other Initiative Updates

TORONTO, ON--(Marketwired - Feb 10, 2014) -  Easton Pharmaceuticals Inc. (OTC: EAPH) a specialty pharmaceutical company that owns, designs, develops, and markets an array of topically-delivered drugs and therapeutic / cosmetic healthcare products, today announces it has received a proposal from an accredited investor to increase its financing from the current $1,000,000 per year it is eligible to currently receive and has been receiving, to $5,000,000 per year by filing a Regulation A Offering Statement with the SEC.

Easton Pharmaceuticals has for the past 6 months been financed from accredited investors through regulation D offerings. The same investors have recently notified the company of their intent to pay for legal fees to allow Easton Pharmaceuticals file a Regulation A Offering Statement with the Securities and Exchange Commission, allowing the company to be financed up to an amount of $5,000,000 per year on a best efforts basis, an increase from the current $1,000,000 per year presently allowed under regulation D. Financing of such an amount would allow the company to meet most if not all of its current business initiatives which includes; 1) to complete the approval process of Viorra in Mexico and other latin countries, manufacture and mass market its "Viorra" product, designed to help treat FSAD throughout North America and other international countries; 2) to start FDA clinical trials for Its cancer drug "XILIVE", which the company currently maintains a minority ownership in, but is in discussions to increase; 3) expand on its medical marijuana initiatives, and; 4) to bring other products in its portfolio to market including recently added HEMP based products to compliment its medical marijuana initiatives. Easton is presently reviewing the financing proposal and other options and expects to reach a decision within the next few weeks.

In other developments, Easton Pharmaceuticals has quickly made the decision to move forwarding with submitting a formal term-sheet towards finalizing and executing a partnership / finance agreement after being satisfied with its due diligence process towards its recently executed LOI / NDA with a private B.C. company who were recently granted a national medical marijuana license. The company will be forwarding what it believes will be a fair and equitable agreement to both sides as management believes delving into the medical marijuana sector at this point in time provides a quick avenue for the company to reach its goals of attaining positive revenues with good growth prospects. Although Easton is not disclosing any names at this point so not to compromise negotiations, it can reveal that this company is one of only a small handful of companies who have thus far been approved and granted a federal medical marijuana growers / distributors license for the entire country of Canada which is similar in size to the state of California. This company is not only considered throughout the industry as possessing leading expertise and knowledge, but also maintaining one of the premium facilities throughout Canada for growing Cannabis. Easton management and consultants are impressed with this companies business model and revenue projections that show exponential yearly increases in revenue, which the company believes are very realistic and attainable. Additional updates to be disclosed as they become available, however it is vital that both companies come to a quick resolution and decision.

In other developments, Easton Pharmaceuticals has entered into discussions and is close to finalizing a possible deal to dramatically increase its ownership interest in the cancer drug "XILIVE". The company presently maintains a 10 percent ownership interest in XILIVE, but is in discussions and believes its ownership interest can be increased for the most part by issuing common shares of Easton Pharmaceuticals. News towards XILIVE and additional testing / trials as a result of efforts by the current majority owners is expected to be announced sometime in the near future.

VIORRA is an over-the-counter aid for the treatment to restore and improve vaginal moisture and elasticity which is believed has have a positive effect on women's sexual desire and arousal FSAD (Female Sexual Arousal Disorder), VIORRA is a topical, daily-use product formulated with ingredients classified by the FDA as (GRAS) Generally Recognized as Safe .

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