LARGO, Fla., Sept. 12 /PRNewswire-FirstCall/ -- GeoPharma, Inc. (the “Company”)
In an attempt to be more proactive with our investor relations efforts, the Company has decided to add clarity to certain recent corporate developments, as well as to provide selected new information.
As announced previously on May 15, 2007, GeoPharma plans to acquire Dynamic Health Products (DYHP), and was subsequently approved by both companies’ shareholders. GeoPharma hoped to conclude this acquisition process on or about August 31st, 2007. Despite all efforts to close the transaction on time, certain considerations have slowed the process. GeoPharma fully anticipates the Dynamic deal to close over the next month, while maintaining the structural integrity and cost benefits of the transaction for its shareholders. When asked to comment on the pending partnership between the two companies, GeoPharma CEO Mihir Taneja said, “We couldn’t be more excited about pairing with Dynamic Health Products; their rapidly growing distribution model is the perfect complement to our already flourishing manufacturing segment. The cost savings and synergies associated with this deal will be outstanding.”
In a new development, the officers and the board have agreed that all fiscal year end bonuses for the period ended March 31st, 2007 will be paid primarily in three-year restricted stock. Company Chairman Jugal Taneja stated, “This material change in the executive compensation should clearly showcase the Firm’s unwavering belief in the long term success of the Company and underlines the fact that all involved feel the current stock price is inappropriate.”
Additionally, GeoPharma has also announced that the board of directors approved a stock repurchase program of up to 1,000,000 shares. Indeed the officers and directors believe that the stock price is not in line with an accurate evaluation of the company and would like the company to benefit as well. As of this announcement GeoPharma has been unable to repurchase any shares in the open market. Regulatory restrictions including but not limited to blackout periods and pending substantive news announcements have impeded any opportunity to repurchase shares to date. Commenting on the repurchase program, Chairman of the Board Jugal Taneja iterated, “We firmly believe that the market is not recognizing the proper value of GeoPharma as a company. If GeoPharma continues to trade at these levels and there are no regulatory ramifications to the Company, we will obviously look to purchase shares in the open market.”
Regarding the FDA approval of our flagship generic drug offering we fully expect an approval will be forthcoming shortly. “This approval will mark a major milestone for GeoPharma and will most certainly add value to the company almost immediately after it is received,” said Mihir Taneja, GeoPharma CEO.
Lastly, the company would like to inform investors that it plans to make its second quarter earnings release on Wednesday, November 14th. During the conference call the company will discuss its quarterly results, and all aspects of its business model and financial state. At the same time, the company for the first time ever in its history will issue year end guidance for the fiscal year of 2008 that ends March 31st, 2008. The company believes
that near term events will add significantly to their existing business model and allow for much greater visibility regarding future business.
GeoPharma looks forward to sharing any and all new developments as they come to fruition in the weeks and months to come.
GeoPharma, Inc. is a rapidly growing pharmaceutical company specializing in the manufacturing and distribution of over-the-counter, nutritional, generic drug and functional food products. The company’s growth strategy is to capitalize on its manufacturing expertise to develop high margin generic or novel drugs for niche markets with high barriers to entry. GeoPharma’s competitive advantage lies in its ability to circumvent or overcome the challenges in these markets. For more about GeoPharma, Inc., go to our websites at www.geopharmainc.com, www.hoodiadexL10.com and www.onlineihp.com.
This press release may contain statements, which constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the company and its subsidiaries’ expectations, intentions, strategies and beliefs pertaining to future performance. All statements contained herein are based upon information available to the company’s management as of the date hereof, and actual results may vary based upon future events, both within and without management’s control. Important factors that could cause such differences are described in the company’s periodic filings with the Securities and Exchange Commission.
GeoPharma, Inc.
CONTACT: Carol Dore-Falcone, VP/CFO of GeoPharma, Inc., +1-727-544-8866x244, cdf@onlineihp.com or IR@GeoPharmainc.com
Web site: http://www.onlineihp.com//
