Rexahn Pharmaceuticals, Inc. Announces $35 Million Korean Investment
Published: Apr 24, 2006
Under the terms of the agreements, Rexahn would transfer to Future Systems exclusive rights to develop, manufacture, and sell three of Rexahn's drug candidates in certain territories for approximately US $35.8 million. Simultaneously, Future Systems will issue and sell 4,326,854 shares of its common stock to Rexahn, representing approximately 28% of Future Systems' outstanding shares. The investment, of approximately US $35 million, would make Rexahn the largest single stockholder of FSI.
According to Ted Jeong, Chief Financial Officer of Rexahn, "The investment in Future Systems strengthens our company and provides Rexahn an opportunity to expand our access to the Asian market while reducing our risks through diversification." He continued, "Our plans for the future may include the acquisition of a pharmaceutical company in Korea, licensing in late stage drugs and/or marketed products and business development in Korea and the rest of Asia, including manufacturing, sales and marketing of current and future drug candidates."
The principal acquisition agreements between Rexahn and Future Systems include a share subscription agreement and an intellectual property assignment agreement.
Completion of the transactions is subject to customary closing conditions, including approval by Future Systems stockholders, and the transactions are expected to close during the second quarter of 2006.
Rexahn Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company dedicated to leveraging its unique discovery platforms, in-house scientific expertise and drug development know-how to advance next generation therapeutics for oncology and central nervous system diseases with unmet medical needs. The company is headquartered in Rockville, MD.
Additional information about Rexahn is available at http://www.rexahn.com
About Future Systems
Future Systems, Inc. is a provider of comprehensive Internet security solutions including state-of-the-art integrated VPN/Firewall products, the first developer of VPN product in Korea and captured more than 50% domestic VPN market share. Future Systems' customers include most of the government organizations, major financial institutions and corporations in Korea.
Additional information about Future Systems is available at http://www.future.co.kr
This press release contains statements (including projections and business trends) that are forward-looking statements. Rexahn's actual results may differ materially from the anticipated results and expectations expressed in these forward-looking statements as a result of certain risks and uncertainties, including, Rexahn's lack of profitability and the need for additional capital to operate its business to develop its product candidates; the risk that Rexahn's development efforts relating to its product candidates may not be successful; the possibility of being unable to obtain regulatory approval of Rexahn's product candidates; the risk that the results of clinical trials may not be completed on time or support Rexahn's claims; demand for and market acceptance of Rexahn's drug candidates; Rexahn's reliance on third party researchers and manufacturers to develop its product candidates; Rexahn's ability to develop and obtain protection of its intellectual property; the risk that the proposed transaction with Future Systems may not be completed successfully or may not provide the benefits Rexahn currently expects; and other risk factors set forth from time to time in our filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, Rexahn assumes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Rexahn Pharmaceuticals, Inc. Tiffany Parker, 240-268-5300 x314
Source: Rexahn Pharmaceuticals, Inc.