IRVING, Texas, Dec. 22 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. today announced that it has reached an agreement to settle the litigation brought by Swiss-American Products, Inc., a private label manufacturer.
Under the terms of the settlement agreement, in exchange for a release of all claims by Swiss-American, Carrington will make a cash payment to Swiss- American of $400,000; issue a 6.0% Subordinated Promissory Note due 2009 in the original principal amount of $400,000 in favor of Swiss-American; and issue a warrant to purchase 200,000 shares of Carrington’s common stock at an exercise price of $5.00, exercisable for a four-year term (subject to certain early termination provisions). In connection with the settlement, Carrington expects to record a one-time charge to its income statement of approximately $924,000 in the fiscal fourth quarter ending December 31, 2005.
About Carrington
Carrington Laboratories, Inc. is an ISO 9001-certified, research-based, biopharmaceutical and consumer products company currently utilizing naturally- occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care, as well as to manufacture and market the nutraceutical raw material Manapol(R) and cosmetic raw material Hydrapol(TM). Carrington also manufactures and markets consumer products and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. Carrington’s DelSite Biotechnologies subsidiary is developing its proprietary GelSite(R) technology designed to provide controlled release of peptide and protein-based drugs. Carrington’s technology is protected by more than 130 patents in 26 countries. Select products carry the CE mark, recognized by more than 20 countries around the world. For more information, visit http://www.carringtonlabs.com .
The securities offered in connection with the settlement have not been registered under Securities Act of 1933 or any state securities laws, and unless so registered may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. This press release is issued pursuant to Rule 135(c) promulgated under the Securities Act of 1933, and does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Certain statements in this release concerning Carrington may be forward- looking. Actual events will be dependent upon a number of factors and risks including, but not limited to: subsequent changes in plans by the Company’s management; delays or problems in formulation, manufacturing, distribution, production and/or launch of new finished products; changes in the regulatory process; changes in market trends; and a number of other factors and risks described from time to time in the Company’s filings with the Securities & Exchange Commission, including the Form 10-Q, filed November 14, 2005.
Carrington Laboratories, Inc.
CONTACT: Carlton E. Turner, Chief Executive Officer of CarringtonLaboratories, Inc., +1-972-518-1300
Web site: http://www.carringtonlabs.com/
