MONTREAL, QUEBEC--(CCNMatthews - Feb. 19, 2007) - This Press Release is Not for Distribution in the United States
MonoGen, Inc. (“Corporation”) (TSX:MOG) today announced that it intends to consolidate its operations into new facilities in the Greater Chicago area and to manufacture its MonoPrep Processor. This new operational plan requires that the Corporation buy back the manufacturing rights for the MonoPrep Processor and the lease obligation for its current manufacturing facility (the “Transactions”). Those manufacturing rights and lease obligation have been held by corporations controlled by Mr. Siegfried Weiler, MonoGen largest shareholder. The compensation agreed to between the parties for the cancellation of these rights is the issuance by the Corporation of 5-year warrants to purchase an aggregate of 600,000 common shares of the Corporation. The warrants are exercisable at a price of US$1.19 per common share and have an expiration date of five years from the closing date. The Transactions are expected to close on or before March 5, 2007. The Transactions are subject to TSX approval.
MonoGen CEO, President and Chief Scientific Officer, Norman J. Pressman, Ph.D., stated: “Following the hiring of Mr. Ted Geiselman as Senior Vice President and Chief Operating Officer in the fall of 2006, the Corporation undertook a complete review of its operations. This review concluded that considerable financial and non-financial benefits accrue to the Corporation in manufacturing MonoPrep Processors in-house and relocating to new facilities. Mr. Weiler has accepted to continue providing consulting services to the Corporation. We are thankful to Mr. Weiler for his continuing support in facilitating the Corporation’s transition to a best-of-class medical device and diagnostic company”.
With operating headquarters in the United States (Greater Chicago area), MonoGen is a medical device company developing an integrated suite of fully automated devices (the SAVANT LABORATORY SYSTEMTM) for anatomic and molecular pathology laboratories. The SAVANT LABORATORY SYSTEMTM is being designed to automate processes performed by clinical laboratories to reduce their costs, increase throughput, and improve the quality and consistency of results.
The common shares of the Corporation are listed for trading on the Toronto Stock Exchange under the trading symbol “MOG”.
Forward-Looking Statements
This press release is not for distribution in the United States.
This press release contains statements that are forward-looking in nature. Statements preceded by the words believe, expect, anticipate, plan, intend, continue, estimate, may, will, and similar expressions are forward-looking statements.
Forward-looking statements are based on the Corporation’s beliefs and assumptions based on information available at the time the assumption was made. Forward-looking statements relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, new services, market forces, commitments and technological developments, relating to the Corporation. By its nature, such forward-looking information is subject to various risks and uncertainties which could cause the Corporation’s actual results and experience to differ materially from the anticipated results or other expectations expressed. Those risks and uncertainties include, but are not limited to MonoGen’s ability to raise additional capital, MonoGen’s ability to execute its business plan while maintaining at all times its various regulatory approvals, the performance of its strategic partners including the performance of Cardinal Health in the commercialization of the Corporation’s products in the marketplace and the competitive response from existing and potential competitors. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this document, and the Corporation undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.
CONTACT INFORMATION
MonoGen, Inc. Mr. Andre Denis Executive Chairman and Interim Chief Financial Officer 514-286-0999, ext. 224 514-286-3777 (FAX) adenis@monogen.com