MEDFIELD, MA--(Marketwire - February 04, 2010) -
Symbollon Pharmaceuticals, Inc. (OTCBB: SYMBA
) has announced today that it has signed a term sheet to
acquire New Zealand Pure, Inc. New Zealand Pure manufactures and markets
an all natural health and personal body care product line under the trade
name "Sylk®." The Sylk® products exclusively utilize in North America
the all natural active ingredient, kiwi vine extract. New Zealand Pure
currently markets 2 products in the $100+ million U.S. personal lubricant
market, Sylk® & Sensation®, and has plans to expand the product line with
several additional products based on the same exclusive active ingredient.
Symbollon expects to achieve the following from the acquisition:
-- Positive cash flow from anticipated 2010 Sylk® product revenues;
-- Commercialization of additional products using the exclusive Sylk®
-- Access to New Zealand Pure's established distribution channels to
expand IoGen™ sales;
-- Realize synergies in marketing and distribution of IoGen™ and
Sylk® products; and
-- Leverage New Zealand Pure's branding and marketing expertise to help
propel product sales.
"This acquisition is a significant step forward in our plans to increase
our revenues in the women's health and personal body care market," said
Paul Desjourdy, President and CEO of Symbollon Pharmaceuticals. "The major
drivers for this acquisition are the synergies it will create. Symbollon
is planning the launch of IoGen™, its dietary supplement for women's
breast health, in February. IoGen™ is the first dietary supplement
formulated to promote breast health for women. We anticipate that the
combination of the IoGen™ and Sylk® product lines will help us to
achieve profitability in 2010."
New Zealand Pure was founded in 2002 by Anna Venice and Kareyn Talson. Ms.
Venice will be continuing with the company after the acquisition is
completed to lead its marketing effects. Since its inception, New Zealand
Pure has sold over $1 million in Sylk® products. The Sylk® products are
currently available online at: www.sylkusa.com and at numerous retail
stores, such as Whole Foods Markets, Vitamin Cottage, and several
Under the term sheet, New Zealand Pure will be acquired for $250,000.
Symbollon will pay $150,000 in cash and $100,000 in stock. The closing is
expected to occur on or before April 1, 2010. Symbollon's stock shall be
valued at the weighted average of the closing sales price as quoted on the
OTC Bulletin Board for the 5 business days preceding the closing.
Symbollon will need additional resources in order to complete the closing.
The securities to be offered to the New Zealand Pure shareholders will not
be or have not been registered under the Securities Act of 1933 and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
The acquisition contemplated by the term sheet is subject, among other
things, to entering into a definitive agreement among the parties,
completion of due diligence, execution of a new exclusive distributor
agreement with the manufacturer of the Sylk® active, and Symbollon raising
at least $1 million in new funding.
Symbollon Pharmaceuticals, Inc. Resources:
-- Corporate Profile: http://symbollon.com/corporate_profile.htm
-- FAQ: http://symbollon.com/faq.htm
-- Technology Overview: http://symbollon.com/technology_overview.htm
About New Zealand Pure
Since its inception in 2002, New Zealand Pure has manufactured and marketed
all natural health and personal body care products under the trade name
Sylk®. New Zealand Pure holds the exclusive manufacturing and
distribution rights in the United States, Canada, Mexico and Brazil to
products utilizing the all natural active ingredient, kiwi vine extract.
About Symbollon Pharmaceuticals, Inc. (OTCBB: SYMBA)
Symbollon is a specialty biotechnology company focused on the development
and commercialization of proprietary products based on its molecular iodine
technology for women's healthcare and antimicrobials uses. For more
information about Symbollon, please visit the company's website at
Forward-Looking Statement: This news release contains statements by the
Company that involve risks and uncertainties and may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements reflect management's current
views and are based on certain assumptions. Actual results could differ
materially from those currently anticipated as a result of a number of
factors, including, but not limited to, the risks and uncertainties
associated with whether (i) we will be able to successfully commercialize
IoGen, (ii) Symbollon will be able to obtain the resources necessary to
continue operations as a going concern, (iii) the Company will be able to
enter into new arrangements with corporate partners, (iv) management and we
will be able to complete the acquisition of New Zealand Pure under the
terms of the term sheet, (v) Symbollon will achieve profitability in 2010
and (vi) such other factors as may be disclosed from time-to-time in the
Company's reports as filed with the Securities and Exchange Commission.