CHICAGO, Dec. 10 /PRNewswire-FirstCall/ -- The Female Health Company (BULLETIN BOARD: FHCO) announced that during calendar 2004 it has paid down $2.9 million in debt and is now without debt. The program was managed internally with selected consultants. There were no agents or agent commissions. It was accomplished in a manner that was anti-dilutive on a fully diluted basis.
In March 2004, FHC completed the sale of 473,317 shares of convertible preferred stock for $1.5 million. In December 2004, FHC completed a special warrant exercise program that resulted in the exercise of warrants for 2.6 million shares for $2.45 million. Proceeds from the convertible preferred offering and warrant exercise program totaled $3.95 million. Of this, $1.3 million came from insiders who exercised warrants that did not expire until May 2006, for 1.4 million shares.
All FHC warrant holders were provided with an incentive to exercise their warrants. A warrant holder could select from receiving at no cost a number of shares equal to 10% of the shares received as a result of warrant exercise or a new 3-yr warrant priced at market to purchase a number of shares equal to 20% of the shares received, as a result of warrant exercise.
The exercise price for 2.3 million of the shares was 70% of market at the time of exercise with a minimum price of $0.50 and a maximum price of $1.00. Due to the fact that the warrants could have been exercised at a price of $0.50, FHC had to reserve an additional 2.3 million shares in the event this occurred. The warrants for all 2.3 million shares were exercised at a price of $1.00/share, eliminating the necessity for the 2.3 million share reserve.
As a result, the total program including the convertible preferred shares issued, incentive shares and warrants issued, and shares received by consultants was anti-dilutive on a fully diluted basis.
The Female Health Company, based in Chicago, owns certain worldwide rights to FC Female Condom(TM) including patents which have been issued in the United States, United Kingdom, Japan, France, Italy, Germany, Spain, The People’s Republic of China, Canada, New Zealand, South Korea and Australia. FC Female Condom(TM) is the only available product controlled by a woman that protects against sexually transmitted diseases including HIV/AIDS, and unintended pregnancy.
“Safe Harbor” statement under the Private Securities Litigation Reform Action of 1995: The statements in this release which are not historical fact are forward-looking statements based upon the Company’s current plan and strategies, and reflect the Company’s current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance; the economic and business environment and the impact of government pressures; currency risks; capacity; efficiency and supply constraints; and other risks detailed in the Company’s press releases, shareholder communication and Securities and Exchange Commission filings. Actual events affecting the Company and the impact of such events on the Company’s operations may vary from those currently anticipated.
For more information about the Female Health Company, dial toll-free via fax, 1-800-PRO-INFO and enter company code “FHCO”. Also, visit the Company’s web site at http://www.femalehealth.com/ and http://www.femalecondom.org/ . If you would like to be added to an e-mail alert list, please send an e-mail to FHCInvestor@aol.com .
Female Health Company
CONTACT: Investors, William R. Gargiulo, Jr., +1-231-526-1244, orBusiness - Product, Mary Ann Leeper, Ph.D., +1-312-595-9123, both of FemaleHealth Company