SOURCE: Health Enhancement Products, Inc.

December 06, 2011 10:41 ET

Health Enhancement Products, Inc. Closes on New Capital Funding to Accelerate Research and Product Development

SCOTTSDALE, AZ--(Marketwire - Dec 6, 2011) - The board directors of Health Enhancement Products, Inc. (OTCBB: HEPI) an Arizona-based food ingredients and nutraceutical enterprise, has accepted a $2 million convertible debt agreement to fund the Company's R&D efforts going forward. In light of progress being made with its research partners, the capital raise was necessary to maintain the pace and scope of work underway.

The funding has been made available by HEP Investments LLC, a private investment group based in Michigan. The first tranche of $500,000 was deposited Monday, December 5. The intended use of such funds is focused primarily on advancing work in cholesterol regulation and anti-inflammatory applications.

"We are very pleased that the Company was able to secure funding on reasonable terms and within reasonable expectations," states Health Enhancement board chairman Stephen J. Warner. "This will allow us to execute a coherent strategy and move decisively to take advantage of market opportunities as product applications are more fully developed."

The funding comes at a time when the Company is expanding its research and product development work into four discrete market verticals, details of which will be forthcoming in the next several weeks.

"The capital raise is another step in the right direction," says Health Enhancement Chief Financial Officer Phillip M. Rice II. "We will be able to marshal resources to their greatest effect and expect to see acceleration in the R&D process."

About Health Enhancement Products, Inc. (OTCBB: HEPI)

Health Enhancement Products, Inc. (OTCBB: HEPI) is a health & wellness company engaged in the development of natural products derived from algae cultures for use as dietary supplements and food ingredients. These natural products are extracted from living algae grown in purified water.

Safe Harbor Statement

Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the timing of completion of a trial, actual future clinical trial results being different than the results the company has obtained to date, and the company's ability to secure funding. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.

Contact Information

  • Contact:

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    David Sasso
    954-990-5451