GalaGen Scores $1.4 Million in Funding

November 1, 2000

1 Min Read
GalaGen Scores $1.4 Million in Funding


GalaGen Scores $1.4 Million in Funding

MINNEAPOLIS--GalaGen Inc. (NASDAQ:GGENC), manufacturer of immune-enhancingingredients, reported that it has placed $1.4 million in new equity with a groupof investors led by one of the largest Swiss private banks--Lombard Odier &Cie. The Swiss bank purchased 1.75 million shares of GGENC at $.80 per share andwill also receive warrants to purchase another .18 million such shares. Thesewarrants are good for 10 years at an exercisable price of $.80 per share, andthey have been executable since early October 2000. GalaGen agreed to registerthe resale of the shares and the shares underlying the warrants within 30 daysof closing the transaction.

"This infusion of new capital will put GalaGen in compliance with the $2million minimum net tangible assets requirement for continued listing on theNASDAQ SmallCap market," said Henry Cardello, chief executive officer. Heexplained that the move satisfies one of two requirements by the NASDAQ ListingQualifications Panel. The other requirement is that GalaGen submit evidence thatit has net tangible assets of at least $3.8 million by Jan. 2, 2001. Cardellomade no assurances of meeting that deadline, but he expressed his company'sconfidence in meeting the goal. In addition to fulfilling NASDAQ listingrequirements, the funds will fuel GalaGen's growth. "This investment alsoenables us to continue to pursue partnerships with major consumer goodscompanies to develop product applications for our all-natural colostrum-basedingredients."

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