VANCOUVER, British Columbia, March 28, 2005 (PRIMEZONE) -- Larrea Biosciences Corporation (OTCBB:LRRA) announced it will be amending and supplementing certain previously filed 8-Ks and restating its October 31, 2004 quarterly financial statements regarding the accounting treatment of certain the financial statement valuations related to the acquisitions of Global Botanics, Inc., the four patents on its proprietary Virastatin(tm) Larrea Tridentata extract process and the acquisition of LarreaRx, Inc.
The change in accounting treatment will result in the elimination of acquisition goodwill and modify other asset valuations previously based on the value of the stock exchanged in the acquisition transactions.
The financial statement impact of the these changes in accounting treatment will be provided in the amended statements, however, the changes will result in a significant reduction in the Company's book value and the balance sheet carrying value of the acquired subsidiaries and the patents. The reduction in valuation of the patents will result in a reduction in amortization expenses going forward which will have a positive impact on net earnings.
In the case of the patents the valuation based on the shares exchanged will be replaced by the transferor's historical cost of developing the patents and the carrying value in the case of the acquired companies will be replaced by their pre-acquisition balance sheet values.
Forward-Looking Statements
All statements contained in this press release on behalf of the Company, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
These statements are subject to risks, uncertainties and other factors, many of which are outside of the Company's control that could cause actual results to differ materially from the results described in such statements. These Factors include, without limitation, the following: (i) competitive pressures; (ii) the Company's ability to consummate strategic acquisitions and alliances; (iii) the Company's ability to attract and retain key personnel; (iii) the Company's ability to continue to develop and expand its product offerings to address emerging business demands and technological trends; (iv) changes in the financial condition of the Company's customers; (v) the future profitability of the Company's customer contracts, and (vi) general economic conditions and fluctuations in currency exchange rates in countries in which we do business.