IRVINE, Calif., August 16, 1999 (PRIMEZONE) -- Naturade, Inc. (OTCBB:NRDC) today announced Health Holdings and Botanicals, Inc. will invest $4 million in the company.
Naturade said the proceeds will be used to fund the recently announced settlement of litigation in Texas of approximately $2 million and for working capital.
Health Holdings and Botanicals, Inc. is a consortium of investors led by the Doyle & Boissiere Fund, LLC, an equity investment fund headquartered in Burlingame, CA, which, prior to the new financing, owns 55 percent of Naturade, Inc.
The investment will be for convertible debt with an annual eight percent coupon maturing on July 31, 2004. Cash will be infused in two drawdowns of $3 million, which occurred on August 9, 1999 and $1 million to be drawn down at a later date. Any portion of the cash advances may be converted into shares at a conversion price of $0.75 per share, or at the fair market value of Naturade's common stock on the date of notice by Health Holdings.
Lionel P. Boissiere, Jr., President of Health Holdings and Botanicals, said, "This additional investment in Naturade is a strong vote of confidence in the company's strategy, its management and its strategic new products and packaging. With the introduction recently of The Chinese Way line of herbs and a new marketing program, as well as the management team, we believe that Naturade is clearly on track for recovery."
Bill Stewart, chief executive officer of Naturade, said, "We are gratified that Health Holdings has the continued confidence in our position and strategy to make this investment. And, with the Texas litigation now behind us, Naturade will be able to focus solely on its new approach to the marketplace, its new products and its new distribution channels."
Naturade, Inc., founded in 1926, is a leading provider of low carbohydrate, high protein powders in the United States, with eight of the top selling ten brands, including the N-R-G(TM) brand, the nation's number one selling protein powder. In addition to protein powders, the company also distributes The Chinese Way(TM) herbal remedies, and a complete line of high concentrate Aloe-Vera based skincare products.
NOTE: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the Company's business, see the Company's filings with the Securities and Exchange Commission.