ProPhase Establishes 3.0 Million Share Equity Line
DOYLESTOWN, PA -- (Marketwired) -- 05/29/14 -- ProPhase Labs, Inc.
(NASDAQ: PRPH) (www.ProPhaseLabs.com) announced today that on May 28,
2014, it has entered into a new Investment Agreement (the "Investment
Agreement") with Dutchess Opportunity Fund, II, LP, a Delaware
limited partnership ("Dutchess"). Pursuant to the Investment
Agreement, Dutchess committed to purchase, subject to certain
restrictions and conditions, up to 3,000,000 shares of the Company's
common stock, over a period of 36 months from the effectiveness of
the registration statement registering the resale of shares purchased
by Dutchess pursuant to the Investment Agreement. In connection with
the Investment Agreement, the Company terminated its prior existing
equity line of credit with Dutchess.
The Company may in its discretion draw on the facility from time to
time, as and when the Company determines appropriate in accordance
with the terms and conditions of the Investment Agreement. The
Company may deliver a notice for a subsequent draw down from time to
time, following the one day pricing period for the prior draw. The
maximum number of shares that the Company is entitled to put to
Dutchess in any one draw down notice shall not exceed $500,000.
Additional details are available in the Company's SEC filing on Form
Ted Karkus, Chairman and Chief Executive Officer of the Company,
stated: "The availability of this equity line enables the Company to
raise capital as needed in a highly efficient manner and without
incurring any debt. The new equity line will provide capital for new
product development, enhanced marketing and brand building
activities, as well as the Company's ongoing working capital needs
and general corporate purposes. There are no options, warrants or
convertible debt associated with the equity line. We will seek to use
the equity line, to the extent needed, at such times as are
appropriate in view of market and other conditions."
About ProPhase Labs
ProPhase Labs is a diversified natural health medical science
company. It is a leading marketer of the Cold-EEZE(R) Cold Remedy
brand as well as other cold relief products. Cold-EEZE(R) Cold Remedy
zinc gluconate lozenges are clinically proven to significantly reduce
the duration of the common cold. Cold-EEZE(R) Cold Remedy customers
include leading national chain, regional, specialty and local retail
stores. ProPhase Labs has several wholly owned subsidiaries including
a manufacturing unit, which consists of an FDA registered facility to
manufacture Cold-EEZE(R) Cold Remedy lozenges and fulfill other
contract manufacturing opportunities. ProPhase also owns 50% of
Phusion Laboratories, LLC ("Phusion"). Phusion licenses a
revolutionary proprietary technology that has the potential to
improve the delivery and/or efficacy of many active ingredients or
compounds. Phusion will formulate and test products to exploit market
opportunities within ProPhase's robust over-the-counter distribution
channels. For more information visit us at www.ProPhaseLabs.com.
Forward Looking Information
Except for the historical information contained herein, this document
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve a
number of risks and uncertainties, including the difficulty of the
acceptance and demand for our products, the impact of competitive
products and pricing, the timely development and launch of new
products, and the risk factors listed from time to time in our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and any
subsequent SEC filings.
Press Only Contact
5W Public Relations
Tel: (212) 452-6400
Chairman and CEO
ProPhase Labs, Inc.
(215) 345-0919 x 0
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