Generex Announces Acquisition of Additional 38% of Subsidiary Olaregen Therapeutix in an Up-Market Transaction with a Share Exchange of GNBT Stock at $2.50
9:00 AM ET, 08/19/2019 - GlobeNewswire
Generex Now Owns 99% of Subsidiary Olaregen TherapeutixGenerex Satisfies Notes for $138,000 and $900,000 to clear debtNuGenerex Immuno-Oncology Spin-outEvaluating Acquisition of a Hospital NetworkCompleted Audit of Direct-to-Patient Pharmacy Business
MIRAMAR, Fla., Aug. 19, 2019 (GLOBE 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!”
9:00 AM ET, 08/19/2019 - GlobeNewswire
Generex Now Owns 99% of Subsidiary Olaregen TherapeutixGenerex Satisfies Notes for $138,000 and $900,000 to clear debtNuGenerex Immuno-Oncology Spin-outEvaluating Acquisition of a Hospital NetworkCompleted Audit of Direct-to-Patient Pharmacy Business
MIRAMAR, Fla., Aug. 19, 2019 (GLOBE 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!”
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