Star Scientific Files Annual Report for 2013; Reports on Ongoing Corporate Transition and Completion of $15.1 Million Financing
GLEN ALLEN, Va.
, March 17, 2014
/PRNewswire/ -- Star Scientific, Inc. (NASDAQ: STSI) today filed its annual report on Form 10-K with the Securities & Exchange Commission (SEC).
In December 2013, the Company undertook significant corporate changes in order to better take advantage of potential opportunities in the area of pharmaceutical products, including the development of products approved by the Food and Drug Administration (FDA). Those corporate changes included the appointment of Michael J. Mullan, MBBS (MD), PhD, as the Company's Chief Executive Officer and Chairman of the Board of Directors, and Christopher C. Chapman, MD, as President of the Company. In addition, five new Directors, including Dr. Mullan, were elected to the Company's Board. Since December, the Company's new management team has been focusing on the pharmaceutical aspects of the Company's business plan, while evaluating the prospects for its nutraceutical and cosmetic lines.
As part of its ongoing transition, the Company, as previously announced, is hosting an investor and analyst meeting on March 20, 2014 in Sarasota, Florida. The meeting will cover the Company's future plans with respect to its change in operational direction, as well as the Company's intent to focus future research and development primarily on the drug development aspects of its business, including anatabine and related compounds. A live video webcast of the March 20 meeting will be accessible to the public on the Company's home page (www.starscientific.com) and through the Investor Relations section of the website (http://www.starscientific.com/investors).
On March 12, 2014, the Company entered into a series of financing transactions that resulted in gross cash proceeds of approximately $9.3 million and cash availability under a credit facility of approximately $5.8 million (subject to certain conditions and limitations), for total available funds of $15.1 million. This financing is intended to provide support for the Company's ongoing operations, including its plans to file an Investigational New Drug Application ("IND") during the second quarter 2014 and, if permitted by the FDA, to begin a Phase I clinical trial thereafter directed to a specific disease condition.
Certain statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, the challenges inherent in new product development initiatives, the continued development and market acceptance of our nutraceutical products, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices (including as related to the FDA warning letter we have received), the outcome of the ongoing investigations, the risks and uncertainties related to the corporate transition matters (including our significant shift to focus on drug development), as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our annual report on Form 10-K for the fiscal year ended December 31, 2013. We undertake no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
About Star Scientific
Star Scientific, Inc. is a technology-oriented company with a mission to promote maintenance of a healthy metabolism and lifestyle. Through its wholly owned subsidiary, Rock Creek Pharmaceuticals, Star Scientific has been engaged in the manufacturing, sale, and marketing of two nutraceutical dietary supplements, cosmetic products, and the development of other nutraceuticals and pharmaceuticals. The company also continues to pursue the licensing of the technology behind its proprietary StarCured® curing process and its related products.
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
Vice President, Corporate Strategy and Development
Rock Creek Pharmaceuticals
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SOURCE Star Scientific, Inc.