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Integrated Pharmaceuticals Sells
Common Stock for $1.25 Million; Convertible Debt Holders Convert
to Common Stock .
FITCHBURG, Mass., June 7 /PRNewswire-FirstCall/
-- Integrated Pharmaceuticals, Inc. (OTC: INTP.PK), of Fitchburg,
Massachusetts, announced today transactions increasing its
shareholders equity by approximately $2.5 million.
In one set of transactions, an investor group
that was the largest participant in the Company's 2004 Private
Placement exercised its option to purchase up to an additional
1.25 million shares at $1.00 per share. As part of that transaction,
the investor group will receive warrants to purchase 625,000
shares of the Company's common stock at $2.50 per share. These
stock purchases close out the 2004 Private Placement, in which
a total of $5.721 million was raised in exchange for 5,896,000
shares of common stock. In addition, warrants to purchase
2,859,000 shares of common stock, exercisable at $2.50 per
share, were issued to investors in the private placement.
In a separate set of transactions, holders
of approximately $1.27 million in principal of convertible
notes ($1.45 million including interest) converted their notes
into shares of common stock at an average conversion price
of approximately $1.17 per share. A total of 1,233,106 shares
of common stock were issued upon the conversion of these notes.
Notes issued in 2003 and 2004 were converted at $1.25 per
share. Notes issued prior to 2003 were converted at either
$0.75 per share or $1.00 per share, at the option of the note
holder. Holders who agreed to the $1.00 conversion price also
received a warrant to purchase one share of common stock at
$2.50 per share for each two shares received upon conversion
of the note, good until December 31, 2006. Warrants to purchase
a total of 50,928 shares of common stock were issued to those
note holders. All converting note holders were included as
beneficiaries of the registration rights agreement that the
Company entered into with investors in the Company's 2004
Private Placement. After the conversions, the Company has
approximately $125,000 of convertible notes outstanding.
Dr. Chinmay Chatterjee, President and Chief
Executive Officer of IntePharm, said, "We are gratified by
the continued confidence that our investors have shown in
our Company. Including the debt conversion, IntePharm has
raised over $7 million in equity this year, which gives us
ample resources to execute our business plan. Work continues
on the completion of our cGMP manufacturing facility in Fitchburg,
MA. The Company's goal is to commence production in the third
quarter of 2004 from its portfolio of nine ready-for- market
products and accept additional purchase orders for these products.
R&D activities will also accelerate as soon as the facility
becomes available."
About the company
IntePharm is an emerging pharmaceuticals
and biotechnology company dedicated to the discovery, development,
manufacture and marketing of specialty pharmaceuticals, biopharmaceuticals,
and ingredients for significant unmet medical and commercial
needs. IntePharm uses a multidisciplinary approach involving
innovative bioprocess engineering, computer simulation and
metabolic engineering for the production of chemicals and
of recombinant, DNA- derived, and small molecule drugs for
therapeutic and chemical uses. IntePharm's clinically active
compounds have applications for the treatment of chronic diseases.
For further information please contact Dr.
Chinmay Chatterjee, Integrated Pharmaceuticals, Inc. at (978)
696-0020, or visit http://www.intepharm.com.
Forward-Looking Statements
Certain statements contained in this press
release that are not historical facts constitute "Forward-Looking
Statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements, in general,
predict, indicate or imply future results, performance or
achievements and generally use words so indicative. Such forward-looking
statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results or performance
of the Company and its business to be materially different
from that expressed or implied by such forward-looking statements.
Included in those factors are the following: general economic
and business conditions; sales and revenues mix; pricing levels;
changes in sales and revenues to, or the identity of significant
customers; changes in technology; industry capacity and production
rates; ability of outside third parties to comply with their
commitments; competition; capacity constraints; availability
of raw materials and adequate labor; availability of appropriate
professional expertise; and availability of liquidity sufficient
to meet the Company's needs. Forward-looking statements by
their very nature are uncertain. There can be no guarantee
that any forward-looking statement will be fulfilled. The
Company assumes no obligation to update forward-looking statements
to reflect actual results or changes in or additions to the
factors affecting such forward-looking statements.
SOURCE Integrated Pharmaceuticals, Inc.
Web Site: http://www.intepharm.com
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