CHARLESTON, S.C.--(BUSINESS WIRE)--Sept. 7, 2006--Zestra Laboratories, Inc. today announced it has closed on a $6.0 million private placement of shares of its Series B Convertible Preferred Stock to accredited investors. A total of 6,000 shares of its Series B Convertible Preferred Stock were sold at a purchase price of $1,000 per share. The Convertible Preferred Stock is convertible into 6,000,000 shares of the Company’s common stock at $1.00 per share. Laidlaw & Company (UK) Ltd. served as placement agent for the transaction. The net proceeds of the offering are being used to launch the advertising campaign of the Company’s patented consumer product Zestra® Feminine Arousal Fluid, to complete its second clinical study involving 200 women, and general working capital.
“This private placement enables us to prove our business model, drive sales of Zestra® within approximately 30,000 points of current retail distribution in the United States and build the Zestra® brand through TV and print advertising. Moreover, it will allow us to expand our existing channels of distribution to more than 50,000 points by the end of the first quarter of 2007,” said Martin Crosby, Chairman and Chief Science Officer. “We further anticipate rapidly growing brand awareness and distribution following the results of our current National Institutes of Health (NIH) - registered clinical study.” The Zestra clinical study description, along with study site investigators and locations, can be viewed at http://www.ClinicalTrials.gov by entering any of the following search terms: female sexual dysfunction, hypoactive sexual desire disorder, sexual arousal disorder, orgasmic disorder or Zestra.
“We are pleased at the number of quality investors who supported our Series B round and the support we received from Laidlaw & Company. We believe that our developments to date and plans for the proceeds of this Offering will place added years of commercialized lead time between Zestra® and other potential solutions being contemplated in the overall scope of women’s sexual health and intimacy,” Crosby added.
The securities sold in this placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and cannot be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements. As part of the transaction, the Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issued in the offering, including the shares of common stock issuable upon exercise of the warrants. This news release is neither an offer to sell nor a solicitation of an offer to buy any of the securities discussed herein and is being issued under Rule 135c of the Securities Act of 1933.
About Zestra Laboratories, Inc:
Zestra Laboratories, Inc., a specialty consumer health products company - is the developer, manufacturer and distributor of Zestra® Feminine Arousal Fluid, a scientific breakthrough in women’s sexual health and intimacy. Zestra® is the only consumer product available that is clinically shown to quickly increase female sexual sensation, arousal, pleasure, and improve sexual experiences for women. The commercialization of Zestra® is the result of seven years of research and clinical testing. Non-prescription Zestra®, in a randomized, double-blind placebo-controlled, crossover clinical trial increased female sexual arousal in 85% of women. This study was first published in “Journal of Sex and Marital Therapy”. Its all-natural formulation is topically applied and begins increasing female sexual pleasure and arousal in 3 to 5 minutes. For complete information, visit www.zestra.com. The Zestra® Package Insert is at: http://www.zestraforwomen.com/PackageInsert.pdf.
About Laidlaw & Company (UK) Ltd:
Laidlaw & Company (UK) Ltd. traces its origins back to 1842 and is authorized in the UK by the Financial Services Authority (FSA). It is also a registered broker dealer and a member of the National Association of Securities Dealers (NASD). Laidlaw offers clients an integrated investment banking and merchant banking capability that puts it into a highly differentiated position to advise, raise capital and partner with entrepreneurial management teams seeking to grow their businesses. Laidlaw has the ability to act as advisor, agent or principal sponsor on each transaction, and its distribution platform offers issuers unique access to both high net worth investors as well as the full spectrum of institutional investors active in the public and private marketplaces
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Zestra Laboratories contained in this news release that are not historical in nature, particularly those that utilize terminology such as “may,” “will,” “should,” “likely,” “expects,” “anticipates,” “estimates,” “believes,” “plans,” “hopes,” or comparable terminology, are forward-looking statements. Forward-looking statements are based on current expectations and assumptions and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. All forward-looking statements speak only as of the date of this news release. Zestra Laboratories, Inc. undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact: Zestra Laboratories, Inc. Mr. Younis Zubchevich, 843-402-0901 Fax: 843-402-0919 younisz@zestra.com www.zestra.com or Hart Marketing Communications Jolie Balido, 305-586-0419 jolie@hartmc.com www.hartmc.com
Source: Zestra Laboratories, Inc.
