SOURCE: Spencer Pharmaceutical, Inc.

November 23, 2010 09:00 ET

Spencer Pharmaceutical Receives a $500,000 Non-Refundable Deposit Commitment From Al-Dorra

BOSTON, MA--(Marketwire - November 23, 2010) - Spencer Pharmaceutical Inc. (PINKSHEETS: SPPH) announced today that it has received an irrevocable commitment for $500,000 in the Company from Al-Dorra. This commitment, the form of which will be determined, will be non-refundable.

According to the letter by Al-Dorra, they will forward this commitment on or before November 30, 2010. The non-refundable deposit is intended as a sign of good faith and will enable the company and its independent financial advisors to properly consider the $0.97 offer proposed by Al-Dorra. It should be noted that even though the Company will accept this non-refundable commitment, Company management is obliged by law to review any third party offer presented.

"This deposit is yet another great gesture by the Al-Dorra group and their interest in our technologies is unparalleled and we look forward to hosting the dinner in their honor," said Dr. Max Arella, President of Spencer Pharmaceutical Inc. "The $0.97 offer is not yet established but each significant step, such as this investment, brings us further to considering whether such offer is in the best interests of our shareholders," further added Dr. Arella.

The final terms and conditions of the transaction will be determined in a definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, confirming due diligence by Spencer, and other conditions and approvals by both companies' management, board of directors and shareholders, as appropriate.

About Spencer Pharmaceutical Inc.

Spencer Pharmaceutical Inc. is a US-based Pharmaceutical Research and Development Corporation, which is developing innovative drug release and absorption systems for the treatment of metabolic diseases such as diabetes and metabolic syndrome.

Important Information About Forward-Looking Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on the Company's website does not constitute a part of this release.

Contact Information

  • Contact:
    Dr. Max Arella
    Spencer Pharmaceutical Inc.
    Tel. 1+(617) 973-5017