SOURCE: FPS Pharma Inc.

January 28, 2016 17:30 ET

FPS Pharma Finalizes Settlement Agreement

Company to Focus on Pharmaceutical Business Throughout Asia

WEST KELOWNA, BC--(Marketwired - January 28, 2016) - FPS PHARMA INC. ("FPS Pharma" or the "Company") has entered into a Settlement Agreement dated December 4, 2015 with J. Lester Alexander III, as Liquidating Trustee (the "Trustee") for Franklin Pharmacy, LLC, James Wesley Moss, Cary Moss and Florida Pharmacy Solutions, Inc. ("FPSI") for the settlement of certain legal actions involving the Company, the transfer of all of the issued shares of FPSI to the Trustee, the resignation of James Wesley Moss as a director of the Company and the cancellation of 25 million escrowed common shares in the capital of the Company which were issued by the Company. 

In addition, of the US$2 million advanced to the Company by FPSI on September 2, 2015 by way of a non-interest-bearing intercorporate loan (the "Loan"), US$532,000 was repaid by the Company by cash and payments of expenses made on behalf of FPSI by the Company and the remaining balance of the Loan of approximately US$1,468,000, was satisfied and extinguished in full. 

The Settlement Agreement received final approval of the United States District Court for the Northern District of Alabama on December 18, 2015. See the Company's material change report dated January 8, 2016 as well as the Settlement Agreement (available under the Company's profile at www.sedar.com) for more information concerning the terms of the Settlement Agreement.

FPS Pharma, through a wholly owned Hong Kong subsidiary, FPS Pharma Asia Limited ("FPS Pharma Asia"), plans to continue operating in the pharmaceutical business through marketing prescription based pharmaceutical products as well as over-the-counter pharmaceutical products throughout Asia.

FPS Pharma Asia has set up offices in Jakarta, Indonesia as well as Hong Kong.

FPS Pharma Asia anticipates marketing its products through "Country Licensees", who in turn have established, what the Company believes are reliable and successful marketing networks. FPS Pharma Asia has identified the following countries for its market: Indonesia, Malaysia, Thailand, Cambodia, Peoples Republic of China, Philippines, Australia, New Zealand, Singapore and Vietnam. FPS Pharma Asia has currently identified country licensees in Indonesia, Malaysia, Thailand, Cambodia and the Philippines.

FPS Pharma Asia expects to joint venture the marketing of its pharmaceutical products in Indonesia and is currently awaiting cost estimates for the manufacturing of these products from one of the largest pharmaceutical manufacturing companies in the world based in New Zealand.

FPS Pharma Asia has also identified several over-the-counter nutritional products in the baby food industry as potential areas for expansion.

"We look forward to establishing a joint venture in Indonesia and to formalizing our working relationships with prospective country licensees. This is an incredible opportunity for FPS Pharma and our shareholders," said James R. Brown, President & CEO.

ON BEHALF OF THE BOARD OF DIRECTORS

James R. Brown, Chairman, President & CEO

The Canadian Securities Exchange has neither approved nor disapproved the contents of this press release.

Caution Concerning Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements relating to the plans to continue operating in the pharmaceutical business; plans to joint venture the marketing of products; business objectives; identification of additional products and the potential success of the foregoing. In disclosing forward-looking information in this news release, the Company has applied several material assumptions, including, but not limited to: that certain of the Company's key objectives will proceed and can be completed at the cost and within the timing expected; that general business and economic conditions will not change in a materially adverse manner and that all necessary approvals will be obtained in a timely manner and on acceptable terms. Forward looking information includes statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in such statements, including, without limitation: risks and uncertainties related to the Company's business plans any related transaction(s) not being completed in the event that the conditions precedent thereto are not satisfied; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms. Forward-looking statements contained in this release are based on the beliefs, estimates, and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates, opinions, or other factors, should change.

Contact Information

  • For further information please contact:
    FPS Pharma Inc.
    James R. Brown
    Chairman, President & CEO
    778-754-3000.