AMARILLO, Texas, Sept. 30 /PRNewswire/ -- Amarillo Biosciences, Inc.
(Nasdaq: AMAR) today announced that Hayashibara Biochemical Laboratories
(HBL), and Amarillo Biosciences have entered into an agreement whereby a
Promissary Note for $3.0 million, dated July 22, 1999, under which
$1.0 million has already been advanced, 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 currently owed by Amarillo Biosciences to HBL includes the
principal amount of $1.0 million and accrued interest of $5,486.30. The total
number of shares to be issued to HBL in consideration for the cancellation of
the Note will be determined by the average of the high and low price, weighted
by volume, for the 10 trading days prior to October 15, 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 34.0% of the
6.36 million AMAR shares outstanding. The new shares will increase HBL's
ownership in Amarillo Biosciences. Two additional equity purchases of
$1.0 million each will occur on November 30, 1999 and February 29, 2000.
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 10-KSB for the year
ended Dec. 31, 1998."
SOURCE Amarillo Biosciences, Inc.
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Related links:
http://www.amacell.com
Company News On-Call:
http://www.prnewswire.com/comp/118055.html or fax,
800-758-5804, ext. 118055
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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