- Challenges notice from Alpha Capital
MIRAMAR, FL, Feb. 04, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Generex Biotechnology Corporation (www.generex.com) (OTCQB: GNBT) (http://www.otcmarkets.com/stock/GNBT/quote) provided a response to the demand for payment from Alpha Capital Anstalt. As reported in our 8-K filed on January 31, 2019, Generex (GNBT) received a demand, on January 25, 2019, from Alpha Capital for immediate repayment of Generex’s Note Due October 26, 2019 (“Note”), coupled with an intent to sue Generex if payment was not made. Although Generex has not defaulted in any payment, Alpha Capital called a default under the Note based on terms stating that Generex must up-list to the NASDAQ market within a specified time. If litigation ensues, Generex intends to assert affirmative defenses that Alpha took aggressive actions to intentionally harm Generex as the company executed on it plan to up-list to NASDAQ, intentionally frustrating key elements necessary for the up-listing. CEO Joseph Moscato personally guaranteed the instrument with his own personal shares.
Mr. Moscato stated, “We believe actions taken by Alpha Capital harmed the company and our stock price, forced us to delay our common stock dividend and have led to other consequences which delayed our plans to up-list to NASDAQ. Generex will defend itself and aggressively pursue recourse if there are any future actions by Alpha Capital. I have a commitment to the shareholders of Generex, as evidenced by the significant progress we have made in reorganizing the company and rewarding shareholders with value, share dividends and execution on our strategy. My committed management team and I will continue our work to realize the full potential of Generex and the NuGenerex family of subsidiary companies.”
About Generex Biotechnology Corp.
Generex Biotechnology is an integrated healthcare holding company with end-to-end solutions for patient centric care from rapid diagnosis through delivery of personalized therapies. Generex is building a new kind of healthcare company that extends beyond traditional models providing support to physicians in an MSO network, and ongoing relationships with patients to improve the patient experience and access to optimal care.
In addition to advancing a legacy portfolio of immuno-oncology assets, medical devices, and diagnostics, the Company is focused on an acquisition strategy of strategic businesses that complement existing assets and provide immediate sources of revenue and working capital. Recent acquisitions include a management services organization, a network of pharmacies, clinical laboratory, and medical device companies with new and approved products.
Our newly formed, wholly-owned subsidiary, NuGenerex Distribution Solutions (NDS), integrates our MSO network with a pharmacy network, clinical diagnostic lab, durable medical equipment company (DME-IQ) and dedicated call center.
Cautionary Note Regarding Forward-Looking Statements
This release and oral statements made from time to time by Generex representatives in respect of the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plan," "believes," "will," "achieve," "anticipate," "would," "should," "subject to" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. 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 and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act.