GNBT Acquires Additional 38% of Subsidiary Olararegen Therapeutix with a Share Exchange of GNBT Stock at $2.50
August 19 2019 - 09:09AM
InvestorsHub NewsWire
Generex
Announces Acquisition of Additional 38% of Subsidiary Olararegen
Therapeutix in an Up-Market Transaction with a Share Exchange of
GNBT Stock at $2.50
- Generex Now Owns 99% of
Subsidiary Olaregen Therapeutix
- Generex Satisfies Notes for
$138,000 and $900,000 to clear
debt
- NuGenerex Immuno-Oncology
Spin-out
- Evaluating Acquisition of a
Hospital Network
- Completed Audit of
Direct-to-Patient Pharmacy
Business
MIRAMAR, FL -- August 19, 2019
-- InvestorsHub NewsWire -- Generex Biotechnology Corporation (www.generex.com) (OTCQB:GNBT)
(“Generex”) is pleased to announce that Generex has acquired an
additional 38% of Olaregen Therapeutix for a total Generex
ownership of approximately 99% after the share exchange at $2.50 a
share for GNBT stock, in a cashless transaction. An 8-K will be
filed with the SEC outlining the details of the transaction. Also,
Generex is pleased
that today it paid the final payment of $138,000 to a noteholder to
satisfy an outstanding note, which together with the payment of
$900,000 on Friday August 16, clears over $1 million in debt from
the books to further strengthen the Generex balance sheet as the
Nasdaq up-list application is being
processed.
Joseph Moscato, Generex
President & Chief Executive Officer stated, “We are thrilled to
acquire an additional 38% of Olaregen as we launch
ExcellagenÒ
into the marketplace. Today’s
buyout of the Olaregen shareholders was unexpected and we are very
happy that those shareholders believe enough in the Generex
strategy that they exchanged their private shares for Generex
public shares further demonstrating to us and our shareholders the
value we are creating. We have had great feedback from the medical
community about the use of Excellagen for the management of
diabetic foot ulcers and other hard to heal wounds as evidenced by
the recently awarded Seal of Approval from the American Podiatric
Medical Association (APMA). Additionally, we are gaining acceptance
in the Veterans Health Administration (VA) system as well as in
major medical research institutions. Generex now owns close to 100%
of this FDA cleared and approved treatment paradigm, additionally
adding substantial shareholder value. This acquisition also
demonstrates the true partnership approach that we take with our
subsidiary companies, which have great, independent operating teams
that work together to realize synergies across the NuGenerex family
of companies. Our partners believe in our transformative model, and
we are excited to accelerate the sales of Excellagen and the
pipeline of Olaregen products that will be launching in the next
several weeks and months.”
Mr. Moscato continued, “In
addition to the exciting news about Olaregen, this morning we paid
the final cash payment of $138,000 dollars to another note holder
on top of the $900,000 final payment in cash Friday to another note
holder, thereby closing those notes out completely, further
enhancing our balance sheet as we make our move to the Nasdaq stock
exchange.”
“Also, we are preparing the
legal merger documents for NuGenerex Immuno-Oncology (NGIO) for the
merger into a public entity. We are excited about this initiative,
as the NGIO spin-out will enable us to recapture the value of our
immuno-oncology assets, including the AE37 immunotherapeutic
vaccine and the Ii-Key immune activation technology. We are also
building additional value for shareholders with the acquisition of
Kiromic Inc. and their clinical stage immunotherapy program, which
has received the final orphan indication in ovarian cancer from the
FDA. Moreover, Kiromic’s oral vaccine technology and the DIAMOND AI
artificial intelligence algorithm for identification of
neo-antigens will advance the treatment of cancer with personalized
immunotherapy regimens. We believe the spin-out of NGIO and
subsequent acquisitions will add hundreds of millions in assets and
value to further enhance the Generex balance
sheet.”
“Finally, I would like to
provide our shareholders with an update on the hospital network and
pharmacy business that we have been evaluating over the last
several months. We are doing the necessary work to evaluate the
potential of acquiring up to 13 hospitals, which includes rural
hospitals designated as federal Critical Access Hospitals (CAHs)
that provide payments and incentives under CMS. We are also very
active with negotiations to acquire the direct-to-patient pharmacy
business that we have audited over the last year. Now that we have
completed the audit, we plan to move forward with this acquisition
once we are Nasdaq listed. These acquisitions will complement our
new partnerships with endocrinology clinics in Arizona where we are
creating an MSO/HMO model with integrated specialty services for
complex diabetes patients, including ophthalmology and podiatry
services. Plus, we plan to provide patient focused services and
cutting edge products through our physician networks to provide
clinical and economic benefits for doctors and patients. Our
end-to-end service model will drastically change the way patient
centric treatment and coordinated care is administered locally as
we build the NuGenerex model
nationwide!”
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 immune-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.
About Olaregen
Therapeutics
Olaregen
Therapeutix, Inc. is a regenerative medicine company focused on the
development, manufacturing and commercialization of products that
fill unmet needs in the current wound care market. Generex aims to
provide advanced healing solutions that substantially improve
medical outcomes while lowering the overall cost of
care. Olaregen's first product introduction,
Excellagen (flowable dermal matrix) is a topically applied
product for dermal wounds and other
indications. Excellagen is a FDA 510K cleared device
for a broad array of dermal wounds, including partial and full
thickness wounds, pressure ulcers, venous ulcers, diabetic ulcers,
chronic vascular ulcers, tunneled/undermined wounds, surgical
wounds (donor sites/ grafts, post-Mohs surgery, post-laser surgery,
podiatric, wound dehiscence), trauma wounds (abrasions,
lacerations, second-degree burns and skin tears) and draining
wounds, enabling Olaregen to market Excellagen in multiple
vertical markets. Additionally, Excellagen can serve as an
Enabling Delivery Platform for pluripotent stem cells,
antimicrobial agents, small molecule drugs, DNA-Based Biologics,
conditioned cell media and peptides. Olaregen's initial focus will
be in advanced wound care including diabetic foot ulcers (DFU),
venous leg ulcers and pressure ulcers. Future products focusing on
innovative therapies in bone and joint regeneration comprise the
current pipeline. Generex's mission is to become a significant
force in regenerative medicine and advance the science of
healing.
About our Service-Disabled Veteran-Owned Small Business
(SDVOSB)
This a
Service-Disabled Veteran-Owned Small
Business (SDVOSB) that specializes in the sale, marketing, and
distribution of innovative medical products through a nationwide
network of veteran owned distribution
services.
About Pantheon
Medical
Pantheon
Medical is a manufacturer of a physician friendly, “all-in-one”,
integrated kit that includes plates, screws, and tools required for
orthopedic surgeons and podiatrists conducting foot and ankle
surgeries. Generex is developing and submitting
several new product lines to the FDA which will include cannulated
surgical screws, plates, and implants.
About MediSource
Partners
MediSource
Partners is a 10-year-old private company, currently contracted
with over 25 vendors (including Pantheon Medical) for nationwide
distribution of implants and devices for spine, hips, knees, foot,
ankle, hand, and wrist surgeries. Additional product lines include
biologics (blood, bone, tissue, stem cells), durable medical
equipment, and soft goods. Generex also supplies kits to process
bone marrow aspirates and platelet rich plasma biologics at the
time of surgery.
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.
Generex
Contact:
Generex Biotechnology
Corporation
Joseph
Moscato
646-599-6222
Todd
Falls
800-391-6755 Extension
222
investor@generex.com
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