GMPM News June 7, 2011
Gamma Pharmaceuticals Inc. Outlines Recent Achievements and Near Term Objectives -- Gamma Gets Traction
Gamma Pharmaceuticals, Inc. (PINKSHEETS: GMPM), a marketing and product formulation company selling its own branded products through wholesalers and direct to retailers, both in the US and internationally.
Gamma's management is pleased to communicate our recent developments and to provide important information to our shareholders on our progress, as the company gains commercial traction. Please note the following:
Sales and Distribution Achievements
Gamma began shipping products to a major national retail chain in April, and is working with their management to put in place additional orders for +/- 8000 outlets. Gamma can strategically launch products in this chain's outlets by region, providing the Company with a more cost-effective path into a major national account.
Gamma just appointed distributors to service territories in California, Texas and selected locations in the Southeastern US. These distributors have placed pro-forma orders for Gamma energy products and are awaiting completion of a manufacturing run currently underway. Negotiations continue with other distributors in several territories across the US.
Gamma's relationship with the Company's major distributor, announced last year, remains intact. They have waited patiently while Gamma management has worked to put in place production financing arrangements sufficient to meet the unit forecasts agreed and the roll-out marketing programs.
Last month, Gamma signed a contract for export sales and is awaiting receipt of a 50% deposit. Contract terms call for a deposit paid to Gamma of 50% of the value of the order with full payment due at completion of manufacture, prior to shipment. Gamma has received the sales order documentation and is waiting for the deposit to commence manufacturing. Management has several other export negotiations underway.
Production Financing to support Sales and Distribution Achievements
Gamma has just negotiated a private production financing arrangement ("Credit Facility") with one of the Company's trusted shareholders. This non-exclusive, off-balance-sheet vehicle can initially provide the Company with the operational liquidity necessary to fund inventory and to meet current expenses. Distributors have recently placed pro-forma purchase orders and inventory reservations with Gamma; Gamma has utilized the Credit Facility to pay suppliers. Manufacturing is now underway to meet these orders.
Current Focus
Gamma's focus is narrow and it is specific: sales, manufacturing and financing. The product pipeline is fully developed and has been revised sufficiently to attract retailers, distributors and consumers. Closely working with distributors and retailers to continue product rollout should achieve in-market sales sufficient to fund the brand marketing programs. The Company's Credit Facility will fund product production and meet working capital needs.
Financing
Traditional equity financing has not been available, despite Management's best efforts. Gamma is diligently working with a variety of parties to secure financing and improve the Company's balance sheet. There are approximately 63-million common shares outstanding with management controlling approximately 53% of the outstanding stock. No stock has been issued in nearly 18-months; but stock will be issued in conjunction with deployment of the Credit Facility.
Audit, SEC Filings and Shareholder Meeting
Coming current with Audit and SEC filings is one of Management's top priorities. Gamma has continued to operate the business as if it were audit compliant. The audit process will be funded by current cash flow from product sales. Due to the low-level of commercial activity these past two years, no substantial audit issues are expected. The company intends to come current with its SEC filings and hold an annual general meeting later this year.
Other Developments
Gamma is moving forward with its own branded energy products. Gamma is now procuring orders and manufacturing its own range of energy products under the Gamma Energy brand. Gamma watchers may recall the Company converting its licensing agreement for energy products with Jugular Inc., into a joint venture last year. This joint venture has not performed as expected. Jugular Inc. has a vision and is trying to create an image for the brand that Management has determined does not resonate well with Gamma's target audience. A dispute has arisen and the arrangement has been sidelined. In addition, in 2010, the Company announced a global product development and marketing joint venture with a world famous athletic personality. This joint venture also has also not performed to either party's expectations and ended amicably earlier this year.
As Gamma gains commercial traction, Management continues to work diligently to source sales opportunities and to develop the Company to meet investors' expatiations. Management believes that the Company has gained a foothold into a key retail channel. This traction, when combined with other distributors and retail opportunities, can provide a growth profile consistent with Gamma's peers. Management will seek closer communication with investors and stakeholders but otherwise invites inquiries to the Company's corporate headquarters.
About Gamma Pharmaceuticals Inc
Gamma Pharmaceuticals, Inc., (www.gammapharma.com) is a marketing and product formulation company selling its own branded products through wholesalers and direct to retailers, both in the US and internationally. Gamma's core focus is the marketing and sale of vitamins and nutriceuticals, OTC pharmaceutical products and personal care products in the United States. Branded nutritional supplements are sold under the trademarks Brilliant Choice™ nutritional supplements featuring the call to action "You've made a brilliant choice for your nutrition"; SAVVY™ adult nutritional supplements featuring the call to action, "Be SAVVY Stay Healthy"; and, Gamma Energy Products™ a high performance supplements featuring the call to action, "Get your Gamma On." Gamma's customer focus is on selling products in the Lifestyle of Health & Sustainability ("LOHAS") marketplace and in the Energy Supplement Market. A series of innovative marketing programs supports Gamma's product sales and retail partners.
At present, Gamma manufactures in North America and distributes in the United States. Gamma's products utilize proprietary "Gel Delivery Technology®" to create innovative gel product forms that give consumers a more pleasant experience. Gel Delivery Technology® characteristics include rapid absorption, convenience and taste great. Market categories Gamma targets are growing as rapidly as 60% per year. Gamma has developed formulas and strategies for Metabolic Syndrome and Diabetes Type II, Stress Reduction, Cognition, Well being, Menopause Symptoms and Personal Care Products. Gamma also develops and manufactures house brands for major retailers. At this time, Gamma has a total of 36 SKU's and holds licenses for 9 SKUs in China.
Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this Press Release regarding any impact the quotation of the Company's stock has on the Pink Sheets or the lack thereof on the OTCBB, and any other effects of the above are forward-looking statements. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Contact:
Gamma Pharmaceuticals Inc
Joe Cunningham
CFO
jcunningham@gammapharma.com
Direct: (651) 204 2048
Office: (702) 989 5262
