EXHIBIT 99
CONTACT: Rodney A. Young, CEO or
Jane Nichols, Vice President of Marketing and New Business Development
LECTEC CORPORATION SIGNS AGREEMENT TO SELL ASSETS OF
CONDUCTIVE BUSINESS IN ORDER TO PROMOTE GROWTH OF
OVER-THE-COUNTER TOPICAL PATCH BUSINESSES
NOVEMBER 21, 2000 - - MINNETONKA, MN - LECTEC CORPORATION (NASDAQ NATIONAL
MARKET: LECT) ) today announced the signing of an asset purchase agreement with
The Ludlow Company LP, a unit of Tyco Healthcare, pursuant to which Ludlow will
purchase LecTec's diagnostic electrode and electrically conductive adhesive
hydrogel business assets. Under the agreement LecTec will receive $7,250,000 in
cash upon closing of the transaction, subject to adjustment for changes in the
net assets at the time of closing. No other terms of the acquisition were
disclosed. The agreement is subject to approval by the shareholders of LecTec
and other customary closing conditions. LecTec currently anticipates that the
closing will occur in January 2001 immediately following its Annual Meeting of
Shareholders.
"The sale of our conductive assets represents a significant step in our
re-invention process, as we aggressively execute our over-the-counter topical
drug delivery strategy," stated Rodney A. Young, Chairman, CEO and President of
LecTec Corporation. "This transaction will help fuel our rapidly growing
TheraPatch and topical patch contract manufacturing businesses. We have been
successful with our OTC topical patch business, in spite of our limited
resources and multiple business focus. Upon completing this transaction, we will
have additional capacity and a strengthened ability to develop and launch even
more topical patch products," concluded Young.
LecTec's investment banker in the transaction was Goldsmith Agio Helms.
Goldsmith Agio Helms is the nation's leading privately held, middle market
investment banking firm. The firm's focus is representing sellers of public and
private companies in mergers, acquisitions, divestitures and recapitalizations.
Goldsmith Agio Helms has offices in Minneapolis, New York, Chicago, San
Francisco and Naples, Florida.
LecTec is a health care and consumer products company that develops,
manufactures and markets products based on its advanced skin interface
technologies. Primary products include a full line over-the-counter therapeutic
patches for muscle aches, insect bites, minor skin rashes, cough due to colds
and minor sore throats, as well as diagnostic electrodes and conductive
hydrogels for electrocardiography and related applications, and a full line of
medical tapes.
This press release contains forward-looking statements that may include
statements regarding intent, belief or current expectations of the company and
its management.
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These forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties that may cause the Company's actual
results to differ materially from the results discussed in these statements.
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