Calypte Biomedical to raise $2 million in stock sale
Steven E.F. Brown
Web Editor-
San Francisco Business Times
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HIV test maker Calypte Biomedical Corp. agreed to sell 400 million new shares of its stock to DP Tzuan (HK) Ltd. for $2 million.
Pleasanton-based Calypte must amend its registration certificate to allow it to have 2.4 billion shares of stock outstanding before the deal goes through.
DP Tzuan agreed to pay in three installments — $500,000 "as soon as practicable," another $500,000 on May 1 and the remaining $1 million on Nov. 1.
The two parties also promised to work together on a "budget plan" for Calypte.
Calypte needs more money to get its Aware-2 product through the Food and Drug Administration approval process.
Adel Karas, Calypte's CEO, works in Dubai and reports to the board of directors for a salary of $90,000 per year. That salary will be doubled if the company ever makes a profit.
The company, which sold its existing HIV testing business back in 2005 to focus on the new Aware series of tests, also for HIV, is so short handed it told the Securities and Exchange Commission it won't be able to file its 10-K for 2013 on time, but will try to submit the annual report by May 15.
Kartlos Edilashvili is chief financial officer — his salary is $50,000 per year and will also be doubled if the company ever becomes profitable.
At the end of September, Calypte had accumulated a deficit of $180.9 million.
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