AKR.L Regulatory News (AKR)

14 Mar 2005 07:00

Embargoed: 0700hrs 14 March 2005 Akers Biosciences, Inc. ("Akers") $2,500,000 financing and default final judgment against Tundra Management LTD Thorofare, NJ, USA - March 14, 2005 Akers Biosciences, Inc. (LSE: AKR) ispleased to announce the issuance of $2,500,000 of principal amount ofpromissory notes to an investment group led by Platinum Partners ValueArbitrage Fund, LP ("Platinum"), convertible into shares of the Company'scommon stock. The Company intends to use these funds for the expansion ofproduction facilities and its sales force and as additional working capitalfollowing the positive market response to the Company's products, in particularfor the heparin/platelet factor 4 antibody test.The notes, which have an 18 months maturity from the date of the agreement,bear simple interest accruing at the annual rate of 6%, and may be repaid bythe Company or converted into the Company's common stock under certain termsand conditions. The conversion price for this debenture will be at a 15%discount to the average 5 day closing bid price prior to the date of conversionand shall not be more than $1.49 for the entire maturity of the debenture, ornot less than $0.61.In addition, the Company has issued to the investors in this transaction twodifferent classes of warrants to purchase additional shares of the Company'scommon stock. The class A common stock warrants, which have a life of one yearand an exercise price determined by the then current market price, entitle theinvestors to purchase the same number of shares to which they are entitledunder the promissory notes, assuming the complete conversion of the Notesissued on the closing date. Additionally, the Company has issued four class Bwarrants, which have a life of five years and an exercise price of $1.49 percommon stock, for each ten shares which the investors would be entitled toassuming the complete conversion of the notes on the closing date. The Companyhas the right to call the exercise of shares issuable upon exercise of thesewarrants if the Company's share price exceeds 200% of the exercise price of thewarrants for ten consecutive trading days.In addition, the Company is pleased to announce that a Default Final Judgmenthas been awarded by the United States District Court, Southern District ofFlorida in favor of the Company against Tundra Management, Ltd. ("Tundra").This case emanated from attempted transfers by Tundra of shares of the Companywhich were to be held as collateral for a loan to the Company, some of whichshares were sold without the right or authorization to do so. The Company hasbeen awarded damages in the amount of $980,635 as a result of Tundra'sbreaches, and thereby has received the Default Final Judgment for set-off ofthe damage amount against the loan from Tundra, thereby satisfying in full thedebt under the loan agreements. Accordingly, all of agreements which evidencethe original loan are therefore paid, fully satisfied and fully performed byAkers Biosciences, Inc., and the Company has been released of any and allfurther obligations.Mark Nordlicht, Managing Director of Platinum, said, "We are very excited aboutthis opportunity to invest in Akers Biosciences, and believe that theadditional capital can facilitate the company's growth trajectory. We enterinto this investment with a positive, long-term view."Ray Akers, CEO of Akers said, "We are delighted to have attracted additionalcapital into our company at this important stage in our development whichsignificantly strengthens our financial position. Moreover, the removal of theTundra debt further strengthens our balance sheet and working capital position.Furthermore, the warrants associated with the investment can provide additionalexpansion capital in the future. We have recently secured a string ofdistribution agreements, including one with Oryx Pharmaceuticals to penetrateCanada with our heparin/platelet factor 4 antibody test, and Alco Industries topenetrate US retail markets. It is in response to these agreements that werequire funds to facilitate the expansion of our production facilities in orderto achieve our aggressive sales targets for 2005 and beyond."Enquiries:Dr. Raymond Akers Chief Executive Officer, 020 7917 9476 Akers Biosciences, Inc. Paul Freedman Chief Financial Officer, 001 856 848 8698 Akers Biosciences, Inc. Bill Roberts CTC, Inc. 001 937 434 2700 Ben Simons Hansard Communications 020 7245 1100/07713090135 Akers Biosciences, Inc. develops, manufactures, and supplies rapid, point ofcare screening and testing products designed to bring healthcare informationboth rapidly and directly to the patient or healthcare provider. The Companyhas advanced the science of diagnostics while responding to major shifts inhealthcare through the development of several proprietary platformtechnologies. The Company's state-of-the-art rapid diagnostic assays can beperformed virtually anywhere in minutes when time is of the essence. Akers hasaligned with major healthcare companies and high volume medical productsdistributors to maximize product offerings, and to be a major worldwidecompetitor in diagnostics. Additional information on the Company and itsproducts can be found at www.akersbiosciences.com.ENDAKERS BIOSCIENCES INC