WEST BRIDGEWATER, Mass., Aug. 19 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII), an infectious diseases management company, today announced the completion of a private placement of common stock purchase warrants to the Paradigm Group of Northbrook, Illinois. The private placement consists of 400,000 common stock purchase warrants with an exercise price of $4.25 and 100,000 common stock purchase warrants with an exercise price of $5.25. All unexercised warrants will expire in February 2000. National Securities Corporation acted as financial advisor and placement agent for BBI.
Since its inception in 1995, the Paradigm Group has invested nearly $100 million in over 30 high growth companies throughout the United States. "We are very excited at the opportunity our investment in Boston Biomedica represents, as we believe that BBI is one of the most promising companies we have seen in quite sometime," said Sheldon Drobny, Chairman of the Paradigm Group.
"It is gratifying that sophisticated investors such as the Paradigm Group would enter into a transaction to purchase warrants for our common stock with exercise prices above our current market value," commented Richard T. Schumacher, CEO, Chairman and Founder of BBI. "If the warrants are exercised in whole or in part, the majority of the proceeds will be used to supplement the current capital we have available through BBI's profitable core business operations and our line of credit to support our very exciting and potentially explosive research and development programs in pressure cycling technology (PCT) and drug development."
Boston Biomedica, Inc. is an infectious diseases management company providing products and services for the detection and treatment of infectious diseases (ID) such as AIDS, Lyme Disease, and Viral Hepatitis. The Company has four business units: (1) BBI Diagnostics, an ISO 9001 certified manufacturer and seller of quality control and other diagnostic products used to increase the accuracy of in-vitro diagnostic tests, (2) BBI Clinical Laboratories, a leading specialty infectious diseases testing laboratory, (3) BBI Biotech Research Laboratories, providing R&D support for the other BBI business units as well as contract research services for third parties, and (4) BBI Source Scientific, an ISO 9001 certified manufacturer of laboratory and diagnostic instrumentation. In addition, the Company is pursuing research and development programs in the areas of pressure cycling technology (PCT) and drug discovery, with the goal of introducing new solutions for the detection and treatment of infectious diseases.
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 common stock purchase warrants discussed in this Press Release may not be exercised or may only be partially exercised. 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 report on Form 10-K for the year ended December 31, 1998 and on Form 10-Q for the period ended June 30, 1999. Copies of this document may be obtained by contacting the Company or the SEC.
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SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or William R. Prather, M.D., Sr. VP Finance & Business Dvlp., both of Boston Biomedica, 508-580-1900, or fax, 508-580-1110
