Ore Pharmaceutical Holdings Inc. Announces $5.3 Million Investment by Steel Partners
ORXE should move up when the volume kicks in
Press Release Source: Ore Pharmaceutical Holdings Inc. On Friday October 22, 2010, 4:30 pm EDT
CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Ore Pharmaceutical Holdings Inc. (OTC:ORXE.PK.ob - News), announced today that Steel Partners, Ltd. has completed a $5.3 million combined debt and equity investment in the Company. The investment is composed of an equity investment of $1.1 million (3,125,000 newly issued Common Shares priced at $0.35 per share) and a note with a five year maturity for $4.2 million. As part of the transaction, Steel has been provided with the right to nominate two new directors to the Company to replace two current directors, who have resigned in conjunction with the transaction.
“We are very excited about this transaction,” said J. Stark Thompson, PhD, Chairman of the Ore Board of Directors. “This investment by Steel provides significant capital for Ore to put to work as it pursues new opportunities to acquire profitable businesses that can operate under the Ore umbrella. I look forward to working with the new Board of Directors and Steel Partners to implement this strategy and find new ways to create value for Ore shareholders.” As part of the transaction, Jack Howard, one of the new Steel directors, will become Chairman of the Board.
p-Value Capital Management, LLC, a specialized healthcare asset management firm, has been managing Ore under a management services agreement, including providing Ore with its senior executive team. In conjunction with this transaction and the new corporate strategy, p-Value will terminate its current management agreement. p-Value will continue to work with the Company on a consulting basis to assist the new Ore Board with the ongoing clinical trial of its lead development-stage pharmaceutical product ORE-1001, as well as other operating activities.
As previously disclosed, Ore has suspended its SEC registration and no longer provides financial or other information through SEC filings. Ore intends to continue providing quarterly and financial information about the company on its web site, www.orepharma.com, as well as through other distribution methods it may identify, and to stockholders directly upon written request.
Ore Pharmaceutical Holdings Overview
Ore Pharmaceutical Holdings Inc. (the “Company”) is currently focused on developing and monetizing its current portfolio of pharmaceutical assets, which includes four clinical-stage compounds in-licensed from major pharmaceutical companies: ORE1001, its lead compound, ORE10002, ORE5002 (tiapamil) and ORE5007 (romazarit).
surf's up......crikey
