DNAPrint(R) Genomics Reaches Payment Agreement With Dutchess Private Equities Fund, Ltd.
Tuesday July 31, 7:00 am ET
SARASOTA, FL--(MARKET WIRE)--Jul 31, 2007 -- DNAPrint® Genomics (OTC BB:DNAG.OB - News) today announced that it has reached a payment agreement with Dutchess Private Equities Fund, Ltd. ("Dutchess") whereby approximately $6 million in notes and incentive debentures may be paid in full by the issuance of stock and warrants in connection with a proposed spin-off of DNAPrint's wholly owned subsidiary, DNAPrint® Pharmaceuticals, Inc. ("Pharmaceuticals").
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Under the terms of the agreement, following the spin-off, Pharmaceuticals would issue up to 2 million shares of Pharmaceuticals' common stock to Dutchess as payment for amounts due under certain notes that were made by DNAPrint® Genomics. As full repayment for the Incentive Debentures, the Registrant would also issue a warrant for 2,000,000 shares of Pharmaceuticals' common stock to Dutchess which could be exercised at an exercise price of $0.01 per share (expiring July 31, 2012) If the balance on the Incentives Debentures at the time of the spin-off is less than $2,000,000, then DNAPrint will be deemed to have made a principal payment on the Notes in the amount of the shortfall. In order to complete the spin-off, Dutchess has agreed to release all the pharmaceutical, diagnostic and associated assets in exchange for the shares of Pharmaceuticals' common stock.
Effective immediately and until such time that the notes and incentive debentures are paid in full, the agreement calls for DNAPrint® Genomics, Inc. to pay Dutchess the sum of 80% of the royalty income generated by Pharmaceuticals within 45 days after the end of each calendar quarter, and 4% of all other cash received by DNAPrint® Genomics, Inc., from sales of goods or services during the preceding calendar quarter. All of these payments are credited towards the retirement of the debt.
"We are genuinely pleased to reach this agreement with Dutchess, which could settle its DNAPrint® Genomics debt in full with the planned spin-off of the DNAPrint® Pharmaceuticals division and help to ensure the stability of the parent Company's finances," stated President and Chief Executive Officer Richard Gabriel.
About DNAPrint(TM) Genomics, Inc.
DNAPrint Genomics, Inc. (www.dnaprint.com) is a developer of genomics-based products and services in two primary markets: biomedical and forensics. DNAPrint Pharmaceuticals, Inc., a wholly owned subsidiary, develops diagnostic tests and theranostic products (drug/test combinations) using the Company's proprietary ancestry-informed genetic marker studies combined with proprietary computational modeling technology. Computational Biology and Pharmacogenomics services are also offered externally to biopharmaceutical companies. The Company's first theranostic product is PT-401, a "Super EPO" (erythropoietin) dimer protein drug for treatment of anemia in renal dialysis patients (with end stage renal disease). Preclinical and clinical development of all the Company's drug candidates will benefit from simulated pre-trials to design actual trials better and are targeted to patients with genetic profiles indicating their propensity to have the best clinical responses. DNAPrint is proud of its continued dedication to developing and supplying new technological advances in law enforcement and consumer ancestry heritage interests. Please refer to www.dnaprint.com for information on law enforcement and consumer applications which include DNAWITNESS(TM), RETINOME(TM), ANCESTRYbyDNA(TM) and EURO-DNA(TM). DNAWitness-Y and DNAWitness-Mito are two tests offered by the Company. The results from these tests may be used as identification tools when a DNA sample is deteriorated or compromised or other DNA testing fails to yield acceptable results.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of DNAPrint's products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. DNAPrint Genomics, Inc. expressly disclaims any obligation or undertaking, except as may be required by applicable law or regulation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DNAPrint's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
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