WEST BRIDGEWATER, Mass., Jan. 27 /PRNewswire-FirstCall/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that the $1,000,000 pledged to a financial institution in January 2002 has been used to satisfy the Company's guaranty obligation to the financial institution. The Company provided a limited guaranty of a loan from the financial institution to an entity controlled by the Company's CEO, Mr. Richard T. Schumacher, in January 2002. In connection with the limited guaranty, the Company pledged $1,000,000 to the financial institution. The Company has now satisfied its obligation under the limited guaranty and pledge with the financial institution through the bank's calling of the Company's pledged cash. The Company continues to maintain its junior interest in collateral pledged by Mr. Schumacher to the financial institution. The collateral includes all of Mr. Schumacher's real property and his common stockholdings in the Company. The loan from the financial institution to the entity controlled by Mr. Schumacher has been extended until March 31, 2003, and under certain circumstances the loan may be further extended beyond March 31, 2003. The Company had reflected the $1,000,000 pledge as restricted cash on its balance sheet since entering into the limited guaranty and pledge, and its business plans did not contemplate accessing the restricted cash. The Company does not expect this event to have a significant effect on its day-to-day operations and the Company is in the process of evaluating the impact on its results of operations.
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ from those projected include the possibility that the Company's revenues may be lower than expected and expenses may be higher than expected with the result that the Company may need additional capital for its operations. Further, should additional financing become necessary or desirable, the Company may not be able to secure such additional financing upon acceptable terms. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2001, and the Company's quarterly reports on Form 10-Q for the three months ended March 31, June 30, and September 30, 2002. Copies of these documents may be obtained by contacting the Company or the SEC.
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SOURCE Boston Biomedica, Inc.