WEST BRIDGEWATER, Mass., Feb. 17 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII), announced today that the Paradigm Group (Northbrook, Illinois) and certain related parties have exercised outstanding warrants to purchase shares of the Company's common stock at an aggregate exercise price of approximately $2.2 million in cash. Payment of the exercise price is due to the Company following registration of the shares underlying the warrants with the SEC. The Paradigm Group had purchased the warrants in August, 1999. National Securities Corporation acted as financial advisor and placement agent for BBI in the private placement of these warrants.
Since its inception in 1995, the Paradigm Group has invested nearly $100 million in over 30 high growth companies throughout the United States. Sheldon Drobny, Chairman of the Paradigm Group said, "We look very carefully at a company before we decide to invest our Fund's money. Our due diligence includes a thorough review of the history of the company, as well as its management, technology, and markets. Paradigm was very impressed with all aspects of Boston Biomedica. Over its 14-year history, BBI has established a comprehensive, well-organized infrastructure with a highly motivated management team resulting in a strong, profitable core business with an enviable worldwide customer base. BBI has also taken two exciting research technologies, PCT and anti-viral drug development, well along the "value curve", while maintaining its core business focus. We are therefore very pleased to exercise these warrants and provide over $2 million to the Company to facilitate its growth".
"Over the past several years, we have been successful in using our internally-generated cash flow -- together with our bank line of credit -- to fund the development of our core business as well as our two exciting research programs," commented Richard T. Schumacher, Founder, Chairman and CEO of Boston Biomedica. "The infusion of capital from the warrant exercise will enable us to pay down our existing bank debt while continuing to move our core businesses and R&D programs forward. Even more importantly, this warrant exercise provides additional confirmation that our growth strategy and research investments are viewed by independent, outside groups as sound, and hold great promise for the future of BBI."
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 (Panacos Pharmaceuticals), 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 SEC will delay or not
declare the effectiveness of the registration statement for the shares
underlying the warrants, and the possibility that BBI may not be successful in
getting PCT to market or successfully establish Panacos Pharmaceuticals as an
independent Company. 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 periods ended March 31, June
30, and September 30, 1999. Copies of these documents may be obtained by
contacting the Company or the SEC.
SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, Chairman and CEO, or Kevin W. Quinlan, President and COO, or William R. Prather, M.D., Sr. VP Finance & Business Dvlp. of Boston Biomedica, Inc., 508-580-1900
