LAKE OSWEGO, Ore., March 29 /PRNewswire-FirstCall/ -- Calypte Biomedical Corporation (OTC Bulletin Board: CBMC - News), medical diagnostic tests manufacturer for the rapid detection of antibodies to the human immunodeficiency virus (HIV) today announced that it has entered into Subscription Agreements with four accredited investors who purchased $5.2 million of Calypte’s common stock in a private placement transaction. Under the terms of the Subscription Agreements, the Company issued 100 million shares of its common stock at $0.052 per share and 150 million warrants exercisable over the next 18 months. The investors are from Geneva, Switzerland and Dubai, United Arab Emirates. The proceeds of the transaction are expected to be used primarily for general working capital purposes and related investments.
The investor group is led by Mr. David Khidasheli, Chairman and Chief Technology Architect of Informap Production LLC (http://www.informap.com). Informap employs over 800 people worldwide, with offices in Geneva, Dubai, New Delhi, Moscow, Paris, London, New York, Singapore and Beijing.
In conjunction with the closing of this PIPE, Calypte extended the maturity of its 8% Secured Convertible Notes and its 7% Promissory Notes issued under the 2005 Credit Facility with Marr Technologies BV (Marr), aggregating approximately $9.2 million, from April 3, 2007 to April 3, 2009.
Roger Gale, Calypte’s Chairman and Chief Executive Officer commented, “We are delighted to welcome such a strong and established group of strategic investors. The group was introduced to the Company by Marr, our largest stockholder. Following this financing, Marr owns over 19% of our outstanding common stock. Mr. Khidasheli and his co-investors have built an extensive network of important contacts in many of our target markets, including India, Russia, Thailand, French-speaking Africa, the Middle East and China. We believe these contacts and resources will complement our own. We expect to leverage these relationships with the financial support provided by this arrangement. In addition to this initial $5 million investment, the financing also includes an intermediate package of warrants that can be a source of up to $13.5 million in additional funding over the next 18 months. We believe we are poised to take advantage of market opportunities, fulfilling important humanitarian needs starting with our non-invasive diagnostic test that serves as a first step in the fight against HIV/AIDS.
Mr. Gale went on to say, “We believe that the restructuring of our balance sheet -- both the debt and the equity -- totally changes the capabilities of our company. With our oral fluid test validated in the scientific community and our intellectual property position in place to both expand our product offerings beyond HIV/AIDS and enter the U.S., we believe that this heralds a major leap forward and breakthrough in our ability to realize the potential within Calypte.”
Marat Safin, President of the Marr Group said, “I am more confident than ever before of the world’s demand for Calypte’s current products and more importantly, its future products. In my opinion, the Company’s research and development plans will position it as the front runner and pioneer of technological innovation, using its new test platform across a wide range of other applications.”
Mr. Safin continued, “I have known David Khidasheli for many years and I am confident in his ability to launch products, develop markets and raise awareness. David has the dedication and qualities necessary to achieve goals that will in my opinion add value to the Company and help the Company build the business. On behalf of Calypte’s stockholders we welcome the new strategic investors in the fight against HIV and AIDS.”
David Khidasheli, representing the investor group commented, “I have watched Calypte over the past several years following Marr’s investment in the Company in 2003. The Company’s humanitarian focus interested me from the beginning. With the Company’s Aware(TM) HIV-1/2 rapid oral fluid (OMT) tests beginning to sell, we believe it is the right time to bring our combined networks’ resources to this business. I envision a combination of government and private sector-led programs involving sales while also taking advantage of local manufacturing and R&D opportunities. I expect to be able to support Calypte’s increased visibility and presence in those countries in which I have worked for many years.”
Mr. Khidasheli continued, “The Company and I have discussed a short- and medium-term plan including a worldwide focus utilizing the combined contacts and resources of our organizations wherever possible. Asia is at the top of this list and is at an ideal stage for our involvement.”
Calypte management will host a conference call on Thursday, April 5, 2007 at 4:30 PM Eastern Time to discuss the Company’s fourth quarter and year-end financial results as well as provide an operations update. Detail call-in information will be released next week.
About Calypte Biomedical:
Calypte Biomedical Corporation (http://www.calypte.com) is a U.S.-based healthcare company focused on the development and commercialization of rapid testing products for sexually transmitted diseases such as the Aware(TM) HIV- 1/2 OMT test that are suitable for use at the point of care and at home. Calypte believes there is a significant need for rapid detection of such diseases globally to control their proliferation, particularly in developing countries, which lack the medical infrastructure to support laboratory-based testing. Calypte believes that testing for HIV and other sexually transmitted infectious diseases may make important contributions to public health, and could increase the likelihood of treating those with undetected HIV and other sexually transmitted diseases.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management’s current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the Company’s ability to obtain additional financing, if and as needed, and access funds from its existing financing arrangements that will allow it to continue its current and future operations and whether demand for its test products in domestic and international markets will generate sufficient revenues to achieve positive cash flow and profitability. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company’s expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company’s success are more fully disclosed in the Company’s most recent public filings with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-KSB for the year ended December 31, 2005 and its subsequent filings with the SEC.
Company Contact: Investor Relations Contact: Richard Brounstein, Tim Clemensen, Executive Vice President Rubenstein Investor Relations (971) 204-0282 Phone: (212) 843-9337 email:rbrounstein@calypte.com email:tclemensen@rubensteinir.com
Source: Calypte Biomedical Corporation
