Company Enters into Loan Amendment with Bank to Remove Default
CHICAGO, Jan. 3, 2011 /PRNewswire/ -- Advanced Life Sciences Holdings, Inc. (OTC Bulletin Board: ADLS), a biopharmaceutical company engaged in the discovery, development and commercialization of novel drugs in the therapeutic areas of infection, oncology and respiratory diseases, announced today that with the oversight of its Board of Directors the company intends to evaluate strategic alternatives, including a possible sale of the Company, with the goal of maximizing shareholder value.
Michael T. Flavin, Ph.D., chairman and chief executive officer of Advanced Life Sciences, commented: "The decision to explore strategic alternatives follows an assessment by our Company's Board of Directors and management of the financial resources required to conduct the registration program for Restanza®, our novel antibiotic, and to fully exploit what we believe is the considerable therapeutic and commercial value of this program. While we have taken steps to improve the financial standing of our Company, we believe that a potential strategic transaction, partnership or acquisition will be in the best interest of all our shareholders."
Advanced Life Sciences further announced that it has reached an agreement with the Leaders Bank to amend the terms of its existing loan. As part of the agreement, Leaders Bank has waived the existing defaults and the Company has agreed to make an interest reserve payment of $186,000 by January 10, 2011. The due date for the $1.1 million principal payment that is currently due has been extended to April 1, 2011. This $1.1 million principal payment as well as an additional $1.0 million principal payment also due on April 1, 2011 can be further extended to January 1, 2012 if the Company pays $486,000 in additional interest reserve by April 1, 2011.
In conjunction with the execution of the loan amendment, Advanced Life Sciences has significantly reduced its operating costs through a company-wide salary reduction program and other cost reduction activities.
About Advanced Life Sciences
Advanced Life Sciences is a biopharmaceutical company engaged in the discovery, development and commercialization of novel drugs in the therapeutic areas of infection, cancer and respiratory diseases. The Company's lead candidate, Restanza™, is a novel once-a-day oral antibiotic in late-stage development for the treatment of respiratory tract infections including community acquired bacterial pneumonia (CABP) and biodefense pathogens including anthrax, plague and tularemia.
Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management's judgment regarding future events. The Company does not undertake any obligations to update any forward-looking statements whether as a result of new information, future events or otherwise. Our actual results could differ materially from those discussed herein due to several factors including the success and timing of our clinical trials and our ability to obtain and maintain regulatory approval and labeling of our product candidates; our plans to develop and commercialize our product candidates; the loss of key scientific or management personnel; the size and growth of potential markets for our product candidates and our ability to serve those markets; regulatory developments in the U.S. and foreign countries; the rate and degree of market acceptance of any future products; the accuracy of our estimates regarding expenses, future revenues and capital requirements; our ability to obtain financing on terms acceptable to us; our ability to obtain and maintain intellectual property protection for our product candidates; the successful development of our sales and marketing capabilities; the success of competing drugs that become available; and the performance of third party collaborators and manufacturers. These and additional risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.
SOURCE Advanced Life Sciences Holdings, Inc.