Company Adds New Board Member
HAYWARD, CA, March 4, 1999 - Sepragen Corporation (OTC BB: SPGNU, SPGNA, SPGNW) announced today that
it had succeeded in restructuring its liabilities to improve the balance sheet.
Pursuant to the terms of previously issued convertible
notes and pursuant to certain other negotiated transactions, Sepragen Corp. converted
$612,941 of debt and accrued expenses into equity. Additionally, it has raised another
$300,000 in capital through the sale of shares of Class A Common Stock to new
Shareholders. In all, a total of $912,942 was either invested or converted into stock. A
total of 1,901,962 shares of Class A Common Stock and 346,718 warrants to purchase Class A
Common Stock were issued at prices of $0.46 to $0.48 per share.
Certain other accounts payable liabilities totaling
approximately $500,000 have also been converted into a secured note with extended payment
provisions over eight months. ``Overall,'' said Vinit Saxena, the company's president,
``This step improves the balance sheet and allows us time to pay off debt without
providing additional threats to our ability to grow. This restructuring will allow us to
pursue not only additional equity financing, but conventional financing means as well for
our cash flow needs.''
The company also announced the addition of John Walker to its
board. Walker replaces Bob Leach who has recently announced his resignation to focus on
pressing demand with his current venture. Walker is an independent management consultant
and has previous experience with managing small and emerging companies in the separations
and nutritional field.
Specifically, he founded Fermentec to develop and commercialize
innovative whey processing technology, and subsequently consulted with Wacon, a venture
formed to also capitalize on unique technologies to increase the value of byproducts from
cheese whey. He also has direct experience in managing a business commercializing a unique
ion exchange technology for water treatment, and in marketing nutritional products.
In 1986, he founded a Northern California chapter of TEC, an
international organization of CEOs, and served as its vice president of Marketing and its
regional manager for eight years. Since 1984, he has provided general management and
strategic planning assistance to a wide variety of high tech emerging companies.
Walker has an MBA from Stanford University. Following his
appointment to the company's board, Walker stated, ``I am excited to be part of Sepragen.
I believe that the company has an exciting technology with tremendous business potential
and a dedicated team of which I am proud to be a part.''
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The statements in this release that relate to future events
or performance, statements about growth, future regulatory clearances, levels of sales and
market size and future manufacturing capacity and efficiencies are forward-looking
statements that involve risks and uncertainties, including risks associated with
uncertainties related to the development of markets for and commercial acceptance of the
company's products and services, the availability of components, competitors' product
introductions and other risks identified in the company's SEC filings. Actual results may
differ from those described in these forward-looking statements. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as of the
date hereof.
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