SOURCE: PacificHealth Laboratories, Inc.
MATAWAN, NJ--(Marketwire - Apr 1, 2013) - PacificHealth Laboratories, Inc. (OTCQB: PHLI), a nutrition technology company, announced today the completion of a private placement of Convertible Preferred Stock resulting in net proceeds to the Company of $866,390. The Company will also voluntarily deregister its common stock under the Securities Exchange Act of 1934 and will no longer be subject to SEC reporting requirements.
President and CEO Fred Duffner along with all the directors participated in the private placement. There were no fees or expenses associated with this placement. The Preferred Stock is convertible into common stock of PHLI at $0.07 per share, carries an 8% cumulative dividend, and includes common stock warrant coverage of 50% of capital invested with an exercise price of $0.10 per common share.
Fred Duffner, CEO and President of PacificHealth Laboratories, said, "During the past two years we have invested our resources against growing our core endurance business. Although it has stabilized, we have not seen the growth that was expected and it came at higher costs. Last year we were also able to secure the licensing agreement to market BODY GLOVE SURGE™ which we launched in an 'All Natural' Gel format in late 2012. We have plans during the second quarter this year to launch BODY GLOVE SURGE 'All Natural' Energy Shot. The Board has approved a strategy of reducing costs and investments against our core business and reallocating our investments in support of BODY GLOVE SURGE Energy Shots. As part of the cost reduction the Board has also approved termination of our SEC reporting requirements and will cease all SEC reporting. This will allow additional savings from accounting and filing fees."
PacificHealth Laboratories, Inc. (OTCQB: PHLI), founded in 1996 by two prominent scientists, started with a singular purpose -- to help athletes achieve their personal goals. We never lost sight of that mission. Collaborating with some of the world's top nutritionists, biochemists and sports scientists, our research and products have reshaped sports nutrition. Our discoveries help muscles work stronger, faster and longer and are an integral part of the daily training and race regimens of athletes at all levels. However, we are most proud of the simple fact that our products "power your passion." To learn more, visit www.pacifichealthlabs.com.
Notice: This news release and oral statements made from time to time by Company representatives concerning the same subject matter may contain so-called "forward-looking statements." These statements can be identified by introductory words such as "expects," "plans," "will," "estimates," "forecasts," "projects," or words of similar meaning and by the fact they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing new products and their potential. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known, such as general economic conditions, consumer product acceptance and competitive products, and others of which are not. No forward-looking statements are a guarantee of future results or events, and one should avoid placing undue reliance on such statements.