PORTLAND, Ore., April 7 /PRNewswire-FirstCall/ -- As required by NASDAQ
rules, Bioject Medical Technologies Inc. (Nasdaq: BJCT), a leading
developer of needle-free drug delivery systems, today announced that its
independent registered public accounting firm's report on its financial
statements for the fiscal year ended December 31, 2005 includes an
explanatory paragraph regarding the Company's ability to continue as a
going concern. The Company has suffered recurring losses, has had
significant recurring negative cash flows from operations and has an
accumulated deficit that raises substantial doubt about its ability to
continue as a going concern.
On March 8, 2005, the Company announced that it is restructuring its
corporate organization, closing its New Jersey administrative office, and
reducing operations headcount and research and development costs at its
Portland, Oregon facility. Going forward, the Company anticipates annual
cost savings in excess of $1.2 million in 2006 and $1.4 million in 2007 in
connection with the expense reductions. As a result of this restructuring,
with the Company's current cash, cash equivalents, and short-term
marketable securities of $2.5 million at December 31, 2005, and with the
addition of the committed funds of $1.5 million of convertible debt
financing with Life Sciences Opportunities Fund II (Institutional), L.P.
("LOF") and several of its affiliates and the committed funds of $1.25
million of convertible debt financing from Partners for Growth, L.P.
("PFG"), the Company believes that it will have the financial resources to
fund its operations and anticipated cash expenditures through at least May
31, 2006. By that time, subject to shareholder approval and customary and
other closing conditions, the Company anticipates that it will receive an
additional $3 million of equity financing in the form of Series E
convertible preferred stock from LOF and its affiliates, which the Company
believes will allow it to fund its operations and anticipated cash capital
expenditures through at least March 31, 2007. The PFG convertible debt is
payable on demand by PFG if shareholders do not approve the conversion
feature of the debt by July 31, 2006. If the Company does not receive the
required shareholder approval of the proposed equity financing with LOF and
its affiliates and the conversion feature of the convertible debt financing
with PFG, the Company might not be able to fund its continuing operations.
In addition, there can be no assurances that it will be successful in
closing the Series E convertible preferred stock financing, even if
shareholder approval is obtained. In either such case, the Company will be
forced to explore alternative plans, which could include a further
curtailment of operations and alternative financing sources.
About Bioject
Bioject Medical Technologies Inc., based in Portland, Oregon, is an
innovative developer and manufacturer of needle-free drug delivery systems.
Needle-free injection works by forcing medication at high speed through a
tiny orifice held against the skin. This creates a fine stream of
high-pressure fluid penetrating the skin and depositing medication in the
tissue beneath. The Company is focused on the development of mutually
beneficial agreements with leading pharmaceutical, biotechnology and
veterinary companies.
This press release contains a forward-looking statement within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding the timing of commercialization of products. Such
forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or
achievements of the Company, or industry results, to be materially
different from any future results, performance, or achievements expressed
or implied by such forward-looking statements. Such risks, uncertainties
and other factors include, without limitation, the risk that the products
will not be accepted by the market; uncertainties related to the time
required for the Company to complete research and development and obtain
necessary clinical data and government clearances; the risk that the
Company may be unable to produce its products at a unit cost necessary for
the products to be competitive in the market; the risk that the Company may
be unable to comply with the extensive government regulations applicable to
its business; the risk that the Company may not be able to enter into new
development and licensing agreements with strategic partners; the risk that
cost savings from the restructuring will not be as great as anticipated;
the risk that shareholders will not approve the Series E preferred stock
financing or the conversion feature of debt financing with Partners for
Growth, L.P.; and the risk that any additional capital that may be needed
in the future will not be available in terms acceptable to the Company, if
at all. Readers of this press release are referred to the Company's filings
with the Securities and Exchange Commission, including the Company's
reports on Form 10-K and Forms 10-Q for further discussions of factors that
could affect the Company's business and its future results. Forward-looking
statements are based on the estimates and opinions of management on the
date the statements are made. The Company assumes no obligation to update
forward-looking statements if conditions or management's estimates or
opinions should change.
For more information about Bioject, visit http://www.bioject.com.
Additional Information
The proxy statement relating to approval of the issuance of Series E
preferred stock to LOF and its affiliates and the issuance of the common
stock to Partners for Growth, L.P. ("PFG") that the Company plans to file
with the Securities and Exchange Commission and mail to its shareholders
will contain information about the Company, LOF and its affiliates, PFG and
related matters. Shareholders are urged to read the proxy statement
carefully when it is available, as it will contain important information
that shareholders should consider before making a decision about the
issuance. In addition to receiving the proxy statement and a white proxy
card from the Company by mail, shareholders will also be able to obtain the
proxy statement, as well as other filings containing information about the
Company, without charge, from the SEC's website ( http://www.sec.gov ) or,
without charge, from the Company. This announcement is neither a
solicitation of proxy, an offer to purchase nor a solicitation of an offer
to sell shares of the Company.
The Company and its executive officers and directors may be deemed to
be participants in the solicitation of proxies from the Company's
shareholders with respect to the proposed issuance. Information regarding
any interests that the Company's executive officers and directors may have
in the transactions will be set forth in the proxy statement.
SOURCE Bioject Medical Technologies Inc.
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Related links:
http://www.bioject.com
CONTACT:
John Gandolfo, Chief Financial Officer of
Bioject Medical Technologies Inc., +1-503-692-8001, ext. 4206, or
jgandolfo@bioject.com
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