Bioject Medical Technologies Inc. (Nasdaq:BJCT), a leading developer of
needle-free injection therapy systems, today announced it has entered
into convertible debt financing with Mr. Ed Flynn, a private investor,
who will be rejoining the Board of Directors. In addition to the funding
provided by Mr. Flynn, Bioject’s CEO and other
executive officers and a member of the Board are also participating in
this round of funding. Pursuant to these agreements, the Company has
received or has commitments to receive an aggregate of $615,000.
Mr. Flynn, a private investor and previous Board member of Bioject, has
provided additional funding to assist in moving the Company forward as
the new CEO pursues new opportunities. The funds will give Bioject
financial strength to carry it into the next year, allowing Bioject to
expand its needle-free technology with current collaborators as well as
to seek new opportunities. In his willingness to rejoin the Board, Mr.
Flynn will add years of business experience and insight to Bioject’s
Board. In addition, the financial support from the CEO and other
executive officers and a member of the Board indicates their commitment
to make the Company successful.
"I am pleased to be once again an active
participant of the Board of Directors and look forward to being involved
in moving Bioject to the next level. I have always supported the Company
and believe this technology brings future clinical advancements into use
today,” said Mr. Flynn. "With
the increase in self injections at home and the need to remove needles
as a possible spread of infectious disease, Bioject is positioned to
address these issues and improve our health care system for everyone.” "Mr. Ed Flynn has been a long time supporter,
Board member and advocate for Bioject and its needle-free injection
therapy (NFIT) systems,” said Ralph Makar,
President and CEO of Bioject. "We are very
pleased to have Mr. Flynn rejoin our Board of Directors and we sincerely
value his significant contributions and business expertise as we move
Bioject to the next level.”
In addition to the convertible financing, the Company has requested and
successfully entered into a Forbearance Agreement with Partners for
Growth, LP ("PFG”)
with respect to its outstanding term and convertible debt agreements.
PFG has agreed to forbearance until no later than June 1, 2008, and has
agreed not to declare an Event of Default or exercise other remedies
under the PFG loans with respect to certain specified events. The
Company has agreed to pay down $550,000 of its revolving line of credit
and to reprice PFG’s convertible debt note
and warrants to $0.90 per share.
As anticipated, the Company received
Nasdaq Deficiency Letters on
November 15, 2007 and November 19, 2007. The November 15 letter
indicated that Bioject has failed to comply with stockholders’
equity, market value of listed securities and net loss from continuing
operations requirements for continued listing, as set forth in
Marketplace Rules(s) 4310c(3). The November 19 letter indicated that
Bioject has failed to comply with the minimum bid price requirement for
continued listing set forth in Marketplace Rule 4310c(4) because for 30
consecutive trading days the bid price of Bioject’s
common stock has closed below the minimum $1.00 bid requirement. The
November 15, 2007, letter states that Bioject has until November 30,
2007 to provide Nasdaq with a specific plan to achieve and sustain
compliance with the Nasdaq Capital Market listing requirements. In the
event the Company is unable to deliver a plan acceptable to Nasdaq,
Bioject would expect to receive notification that its securities will be
delisted. At that time, the Company has the option to appeal the Staff's
decision to a Nasdaq Listing Qualifications Panel. The November 19,
2007, letter states that Bioject will be provided 180 calendar days, or
until May 19, 2008, to regain compliance with the minimum bid price
requirement. If, at any time prior to May 19, 2008, the bid price of
Bioject’s common stock closes at $1.00 per
share or more for a minimum of 10 consecutive business days, Nasdaq will
notify Bioject that it is in compliance with the minimum bid requirement.
"In anticipation of the financing requirements and the Nasdaq
notification, the Company took a proactive stance by raising capital and
beginning to execute on our new customer-focused business strategy,
which we believe will allow us to become compliant with the Nasdaq
requirements,” said Mr. Makar. "Bioject
is currently discussing new opportunities with several new potential
partners as well as current partners to expand its technology in new and
exciting areas. The dose-sparing clinical studies that are currently
under way should be finished and data available next year, which could
present some exciting areas for expansion as well as new directions in
the delivery of some vaccines. We are very optimistic about our future
and are looking forward to a very productive next few years,”
said Mr. Makar. We have made many positive changes this year in the
Company and feel we are well positioned to move forward with success in
the near future.”
Bioject Medical Technologies Inc., based in Portland, Oregon, is
an innovative developer and manufacturer of needle-free injection
therapy systems (NFITS). NFITS provide an empowering technology and work
by forcing medication at high speed through a tiny orifice held against
the skin. This creates a fine stream of high-pressure fluid, penetrating
the skin and depositing medication in the tissue beneath. The Company is
focused on developing mutually beneficial agreements with leading
pharmaceutical, biotechnology, and veterinary companies.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
regarding the expansion of our relationship with current collaborators
and regaining compliance with Nasdaq listing standards. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that 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.
Such risks, uncertainties and other factors include, without limitation,
the risk that the Company’s products will not
be accepted by the market, the risk that the Company will be unable to
successfully develop and negotiate new strategic relationships or
maintain existing relationships, the risk that Bioject’s
current or new strategic relationships will not develop into long-term
revenue producing relationships, the fact that Bioject’s
business has never been profitable and may never be profitable,
uncertainties related to Bioject’s dependence
on the continued performance of strategic partners and technology,
uncertainties related to the time required for the Company to complete
research and development, obtain necessary clinical data and government
clearances, the risk that the Company may be unable to produce our
products at a unit cost necessary for the products to be competitive in
the market and the risk that the Company may be unable to comply with
the extensive government regulations applicable to Bioject’s
business, the risk that Bioject’s stock price
may not increase adequately to satisfy the minimum bid requirement, the
risk that Nasdaq does not agree that our proposal to regain compliance
with listing standards is likely to achieve success. Readers of this
press release are referred to the Company’s
filings with the Securities and Exchange Commission, including the
Company’s reports on Form 10-K and Forms 10-Q
for further discussions of factors that could affect the Company’s
business and its future results. Forward-looking statements are based on
the estimates and opinions of management on the date the statements are
made. The Company assumes no obligation to update forward-looking
statements if conditions or management’s
estimates or opinions should change.
For more information about Bioject, visit www.bioject.com.
