Here is a copy of the original Memorandum of Understanding between XKEM and Alembic dated 4/19/04. Eventhough, Pandey terminated this agreement, Swift can work out a new agreement with Alembic to distribute Nicosan worldwide and forgive the loan or raise funds to pay Alembic as a result I don't see a way out through bk because of non-payment. It takes a little bit of business savvyness to get rid of a problem like this one.
Xechem Announces Execution of Definitive Agreement Documents Regarding Business Cooperation and Cash Infusion Pact with Alembic, Limited, a Major Indian Pharmaceutical Company
Business Wire, April 19, 2004
Business Editors/Health/Medical Writers
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--April 19, 2004
Xechem International Inc. (OTC BB: XKEM) today announced that it has executed definitive closing agreement documents in connection with the previously announced memorandum of understanding with Alembic, Limited, a 97 year old pharmaceutical company based in India. Alembic specializes in the manufacture and distribution of pharmaceutical products in Asia and Africa. The Company believes the strategic alliance established by this Agreement will enhance and accelerate its ability to bring NICOSAN(TM)/HEMOXIN(TM) to market, expected to be within the next 12 months. NICOSAN(TM)/HEMOXIN(TM) has shown efficacy in clinical studies in Nigeria, in the treatment of Sickle Cell Disease (SCD). Currently, there is no definitive safe therapeutic treatment for a majority of sickle cell anemia patients.
The definitive agreement tracks the Memorandum of Understanding, which calls for, among other things, the funding of up to $3,000,000 in 4-year loans from Alembic, in addition to its $640,000 equity investment in Xechem. The funds are slated primarily toward moving forward Xechem's efforts to commercialize NICOSAN(TM)/ HEMOXIN(TM) in Nigeria.
According to Dr. Ramesh C. Pandey, Xechem's Chairman and CEO, "We are looking forward to the day when our launch of the product in Nigeria will become a reality. The support provided by Alembic, both from a financial and a development/marketing perspective, should bode well for the future."
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