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PRESS RELEASE
FOR RELEASE DECEMBER 27, 2000 AT 7:30 AM EST
Contact: Robert P. Hickey
Life Medical Sciences, Inc.
(732) 728-1769
[email protected]
LIFE MEDICAL SCIENCES ANNOUNCES $1 MILLION FINANCING;
ADDITION OF TWO DIRECTORS
EDISON, NJ (December 27, 2000). . . Life Medical Sciences, Inc. (OTCBB: CHAI),
today announced that it has secured approximately $1 million in new financing
through the completion of a $500,000 private placement with a consortium of
European institutional investors and the commitment of a comparable amount
through the sale of certain New Jersey state tax net operating losses. The
private placement involved the issuance of 500,000 shares of a newly-created
Series A Preferred which are automatically convertible into 5,000,000 shares of
the Company's common stock upon the occurrence of certain events or, at the
latest, June 26, 2001. In conjunction with the private placement, the Company
announced the expansion of its Board of Directors to seven members through the
addition of Dr. Gere S. diZerega and Dr. Richard L. Franklin. Dr. diZerega is a
Professor in the Department of Obstetrics and Gynecology at the University of
Southern California Medical Center and a world renowned expert and medical
industry consultant in the field of post-operative adhesions. Dr. Franklin is
CEO of Phairson Ltd., a private British company engaged in biomaterials and
pharmaceutical-based product development for numerous therapeutic applications
including post-operative adhesion prevention.
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Robert P. Hickey, Chairman, President & CEO of Life Medical Sciences, stated,
"This financing, coupled with the substantial experience and influence of our
new Board members, represent major steps toward reestablishing our company as a
viable competitor in the estimated $2.0 billion adhesion prevention therapy
market. In fact, Dr. Franklin was instrumental in attracting the investors to
this private placement. Hickey continued, Our principal focus will be the
completion of the clinical development and the commercialization of
REPEL-CV(TM), the first anti-adhesion product approved by the FDA for human
evaluation in cardiac surgical procedures."
The private placement is the first step in an established short-term plan to
enhance the Company's financial assets and broaden the Company's portfolio of
biomaterials technologies. Although the Company's existing polymer materials
have been demonstrated to be safe and effective in several anti-adhesion
applications, the opportunity in cardiac surgery appears most compelling due to
the absence of any FDA approved products and the significant clinical and
economic benefits associated with the reduction of post-operative adhesions in
the roughly 1 million open heart surgical procedures performed annually on a
worldwide basis.
Over the past two years, the Company will have received almost $1.3 million in
funding through the sale of certain tax net operating losses. This funding has
been made possible by the Company's meeting the State of New Jersey's criteria
as a firm engage in a promising emerging technology field. Similar amounts of
additional funding may be available to the Company in future years through the
State's Technology Tax Transfer Program..
Certain statements in this Press Release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which 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.
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