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EXHIBIT 99.1
Contact: Donald J. Stewart RCG Capital Markets Group, Inc.
Chief Financial Officer Retail: Jim Estrada, Brett Maas
ABAXIS, Inc. Institutional/Analysts: Joe Dorame
408-745-6851 Media: Jeff Stanlis
480-675-0400
FOR IMMEDIATE RELEASE
ABAXIS COMPLETES $5.5 MILLION PRIVATE FINANCING
Sunnyvale, California --- October 4, 2000 --- ABAXIS, Inc. (NASDAQ: ABAX), a
medical products company manufacturing point-of-care blood analysis systems,
announced today it has completed a private financing raising a total of $5.5
million.
The company issued convertible preferred stock that may be converted to common
stock at a fixed conversion price of $7.00 per share. The convertible preferred
stock has a 7% coupon that is payable semiannually. The preferred stock will
automatically convert into common stock no later than October 3, 2006. Each
investor will receive 50 five year warrants to purchase common stock at $7.00
per share for each $1,000 invested in the convertible preferred stock. The
company has agreed to file a resale registration statement covering the
underlying common stock in the next 45 days. The proceeds from the offering will
be used for capital expenditures, primarily for its new manufacturing facility,
and general working capital purposes.
"We are very pleased that there is a recognition of the performance of Abaxis'
operating performance, which has enabled us to raise additional capital at a
premium to our current common stock price in this difficult equity market",
commented Clint Severson, Chairman, President and Chief Executive Officer of
Abaxis. "We are happy with the support of two of our current investors who
purchased $4.5 million, and the support of our management team who invested
$500,000. The new equity capital paves the way for the timely completion of our
new manufacturing facility, allowing us to significantly expand capacity and
aggressively pursue the market opportunity before us in both the veterinary and
medical markets."
Founded in 1989, Abaxis develops, manufactures and markets portable blood
chemistry analyzers for use in any patient-care setting to provide clinicians
with rapid blood constituent measurements. The system consists of a compact, 6.9
kilogram, portable analyzer and a series of 8 cm diameter single-use plastic
disks, called reagent discs, that contain all the reagents necessary to perform
a fixed menu of tests. The system can be operated with minimal training and
perform multiple tests on whole blood using either venous or finger stick
samples. The system provides test results in less than 14 minutes with the
precision and accuracy equivalent to a clinical laboratory.
This press release contains forward-looking statements, which are made in
reliance upon the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The future
events described in such statements involve risks and uncertainties, including
but not limited to, risks and uncertainties related to the market acceptance of
the Company's products and the continuing development of its products, risks
associated with manufacturing and distributing its products on a commercial
scale, general market conditions, competition, risks and uncertainties related
to its ability to raise capital in order to fund its operations and other risks
detailed from time to time in ABAXIS' periodic reports filed with the United
States Securities and Exchange Commission.
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