AMARILLO, Texas, April 5 /PRNewswire/ -- Amarillo Biosciences, Inc.
(Nasdaq: AMAR) today announced that Hayashibara Biochemical Laboratories
(HBL), and Amarillo Biosciences have entered into an agreement whereby two
Promissary Notes, dated September 25, 1996 and September 16, 1997, issued by
Amarillo Biosciences to HBL for loans, will be converted into common stock of
Amarillo Biosciences. "The willingness of HBL to convert this debt into stock
is another sign of the strong support from HBL we have enjoyed since 1989,"
said Dr. Joseph Cummins, President and CEO.
The amount owed by Amarillo Biosciences to HBL includes the principal
amount of $2.6 million and accrued interest of $237,526. The total number of
shares to be issued to HBL in consideration for the cancellation of the Notes
is 946,094 shares at $2.9992 per share. This per share price was determined
by the average of the high and low price, weighted by volume, for the 10
trading days prior to April 1, 1999. These shares are "restricted stock"
within the meaning of Rule 144 promulgated under the U.S. Securities Act of
1933, and must be held for one (1) year before they can be sold under such
Rule.
Hayashibara Biochemical Laboratories currently owns 22.8% of the
5.41 million AMAR shares outstanding. The new shares will increase
HBL's ownership in Amarillo Biosciences to 34.3% of the 6.36 million
post-conversion shares outstanding.
Amarillo Biosciences, founded in 1984, is a world leader in the
development of oral interferon alpha as a treatment for a variety of
conditions including Sjogren's syndrome, fibromyalgia, opportunistic
infections in patients who are HIV positive, hepatitis B and hepatitis C.
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties, including uncertainties related to product
development, uncertainties related to the need for regulatory and other
government approvals, dependence on proprietary technology, uncertainty of
market acceptance of oral interferon alpha or the company's other product
candidates and other risks detailed from time to time in the company's filings
with the Securities and Exchange Commission. In particular, see
"Item 1. Financial Business Risk Factors" of the company's Form 1O-KSB for the
year ended Dec. 31, 1998."
SOURCE Amarillo Biosciences, Inc.
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Related links:
http://www.amacell.com
CONTACT:
Kathleen L. Kelleher, COO and Vice President
Business Development of Amarillo Biosciences Inc., 806-376-1741,
or email, ABI@AmarBio.com
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