Senetek PLC Makes Offer for IGI, Inc.
NAPA, Calif., Jan. 14 /PRNewswire-FirstCall/ --
Senetek PLC (OTC:SNTKY)
(BULLETIN BOARD: SNTKY) , http://www.senetekplc.com/, today announced it has
made an offer to IGI, Inc. (AMEX:IG) for a "merger of equals" of the two
companies in which each company's shareholders would receive 50% of the shares
of a newly formed U.S. holding company. The offer contemplates a
stock-for-stock transaction that would be tax free under U.S. and U.K. law, and
based on pro forma calculations Senetek believes that the new holding company
will be eligible for listing on a national exchange.
The offer is conditional upon Senetek's satisfactory completion of its due
diligence review and is in effect for 45 days. The contemplated merger also
would be subject to negotiation and execution of definitive agreements,
approval by the companies' respective Boards of Directors and shareholders, and
satisfaction of closing conditions specified in the definitive agreements.
Senetek also announced that it will be collaborating with IGI to evaluate its
patented Novasome(R) and micellar nanoparticle technologies for the topical
local delivery of Senetek's Invicorp(R) erectile dysfunction therapy.
Frank J. Massino, Chairman of the Board and Chief Executive Officer of Senetek,
said, "We have been impressed by our review to date of IGI's proprietary
delivery technologies and new product pipeline. Our review has confirmed a
number of synergies potentially achievable by the combination of the two
companies' technologies, customer bases and product development initiatives.
We very much look forward to completing our review and working with the IGI
team to complete this transaction."
This press release does not constitute an offer of any stock or other
securities of Senetek, IGI or any other party for sale.
Senetek is a life sciences-driven product development and licensing company
focused on the high growth market for products primarily addressing age-related
conditions. Senetek's patented compound Kinetin is a naturally occurring
cytokinin that has proven effective in improving the appearance of aging skin
with virtually none of the side effects associated with acid-based active
ingredients. Senetek has licensed Kinetin to leading global and regional
dermatological and skin care marketers including Valeant Pharmaceuticals, The
Body Shop and Revlon, and has licensed its Invicorp erectile dysfunction
technology to Ardana Bioscience Ltd. for Europe, with rights to additional
markets. Senetek's researchers at the University of Aarhus, Denmark, also are
collaborating with the Institute of Experimental Botany, Prague, and with
Beiersdorf AG, Hamburg, to identify and evaluate additional new biologically
active compounds for the high growth skin care field.
IGI is a company committed to growth by applying its proprietary technologies
to achieve cost-effective solutions with differential consumer advantages for
its customers. IGI's patented Novasome(R) micro-encapsulation technology
offers value-added qualities to cosmetics, skin care products, dermatological
formulations and other consumer products, providing improved dermal absorption
controlled and sustained release as well as improved stability and greater ease
of formulation. IGI has licensed Novasome technology to leading global
dermatological and skin care companies including Johnson & Johnson Consumer
Products, Inc., Estee Lauder Corporation, Genesis Pharmaceutical, Inc. and
Apollo Pharmaceutical, Inc., and recently sub-licensed Tarpan Therapeutics,
Inc. to obtain FDA approval for and market IGI's PTH 1-34 compound using
Novasome technology for psoriasis.
Senetek PLC Investor Relations Contact:
1-707-226-3900 ext. 102
E-mail:
Safe Harbor Statement
This news release contains statements that may be considered "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act,
including those that might imply the parties' expectation of the successful
completion of the transactions contemplated by the letter of intent and success
in combining the two companies and realizing hoped for synergies.
Forward-looking statements by their nature involve substantial uncertainty, and
actual results may differ materially from those that might be suggested by such
statements. Important factors identified by the companies that they believe
could result in such material differences are described in their respective
Annual Reports on Form 10-K for the year 2003 and subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. However, the companies
necessarily can give no assurance that they have identified or will identify
all of the factors that may result in any particular forward-looking statement
materially differing from actual results, and neither assumes any obligation to
correct or update any forward-looking statements which may prove to be
inaccurate, whether as a result of new information, future events or otherwise.
DATASOURCE: Senetek PLC
CONTACT: Senetek PLC Investor Relations, +1-707-226-3900, ext. 102,
Web site: http://www.senetekplc.com/