IRVINE, Calif., Dec. 3, 2003 (PRIMEZONE) -- BioGentech Corp. (OTCBB:BGTH), which develops, commercializes, markets and distributes breakthrough products providing real value from practical technology applications, today announced completion of a $1,600,000 financing with Gryphon Master Fund, LP, of Dallas, Texas. In addition, BioGentech Corp has also secured an additional $1,060,000 from a private trust, and $540,000 from a private investment banker. The funds will be used for general corporate purposes, including acquiring cutting-edge products to supplement BioGentech's strong internal product pipeline.
"This infusion of capital will allow us to significantly accelerate our strategic business plan," said BioGentech CEO Chaslav (Chas) Radovich. "We are aggressively pursuing our corporate objectives, including having breakthrough products to be released over the coming months and years to increase the value and cash flow position of our firm. We are pleased with the confidence shown by Gryphon Master Fund in our business model."
On September 8, 2003, BioGentech initially secured $600,000 in the first round of funding by Gryphon Master Fund, in the form of an 8% convertible note at $2.00 per share. BioGentech also issued to Gryphon three-year warrants to purchase, at any time, 90,000 shares of BioGentech common stock at $2.88 per share. The note is due and payable in three years and is convertible, at any time, into BioGentech common stock at $2.00 per share. As part of the financing agreement, BioGentech will prepare and file a registration statement registering the common shares to be issued upon conversion of the preferred stock and exercise of the warrants.
Furthermore, on September 25, 2003, BioGentech received an additional $1,000,000 in convertible preferred stock financing from Gryphon. The Convertible Preferred Stock will pay a 7.5% dividend, and each share is convertible into BioGentech common stock at $2.40 per share. Included with the Convertible Preferred Stock are detachable three-year warrants to purchase 104,167 shares of BioGentech's common stock at the price of $2.88 per share.
About BioGentech Corp.:
Headquartered in Irvine, California, BioGentech Corp. is a pharmaceutical and consumer products company. Its flagship product, Prehistin(tm), the world's first prehistamine to prevent the primary cause of allergies, is scheduled for Phase III clinical trials in the second quarter of 2004 and initial marketing in the U.S. in the spring of 2005. Furthermore, international sales should begin in the spring of 2004 in Canada and Japan. Prehistin moderates the body's level of the protein IgE, preventing allergy symptoms with no known side effects or negative drug interactions.
BioGentech is also developing treatments in the areas of immunomodulation, menopause, pinpoint detoxification and cholesterol reduction, as well as a variety of consumer oriented healthcare products.
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.