MERIDIAN, Idaho, July 20 /PRNewswire-FirstCall/ -- Southridge Technology Group, Inc. (BULLETIN BOARD: SOUT) and RxElite Holdings, Inc., its wholly owned operating subsidiary and developer, manufacturer, and marketer of specialty generic prescription drug products, announced today that its shares will commence trading Monday, July 23, 2007 under the symbol SOUT.OB on the over-the-counter bulletin board. The Company also announced that it closed on approximately $19.6 million of equity financing through the sale of common stock and warrants. The proceeds of this financing will be used for, among other things, costs related to the launch of the company's newly approved generic Sevoflurane, product pipeline development, and general working capital.
"The additional capital from this offering positions the combined company to continue the success of RxElite in its current markets, the expansion and acceleration of its product development activities, and its offering of highly competitive products," commented Daniel Chen, Chairman and CEO of RxElite Holdings, Inc. "Becoming a public company allows RxElite to enjoy broader exposure to the investment community and provide us with access to the capital markets as we continue to expand market share and grow our revenues and earnings."
RxElite has exclusive rights from Minrad International to market generic Sevoflurane in the United States, which RxElite expects to be its principle product for 2007. Minrad's version of generic Sevoflurane received FDA approval on May 2, 2007. Mr. Chen added, "We anticipate significant gross margin benefits from the launch of generic Sevoflurane in the last 6 months of 2007." The U.S. market for Sevoflurane is estimated at $400 million annually.
Product pipeline development
At present, RxElite has a portfolio of pipeline and marketed specialty products classified into three identifiable business segments: (1) anesthetic gases; (2) sterile liquid dose products; and (3) transdermal patch products.
A series of Abbreviated New Drug Applications (ANDAs) are in various stages of development, and in addition to our internal pipeline, we also have corporate partnerships with Alkem Laboratories Ltd. and Stason Pharmaceuticals, each of which is a significant Asian generic pharmaceutical company, as well as with Zach Systems S.p.A, a European pharmaceutical company. The agreements are for the development, testing and manufacture of a portfolio of products that RxElite has exclusive rights to sell in the U.S. market.
RxElite's customers include hospitals and hospital Group Purchasing Organizations (GPO), national and regional wholesalers, direct retail pharmacy stocking chains, leading homecare companies, and outpatient and ambulatory care clinics.
About RxElite Holdings, Inc.
RxElite Holdings, Inc. develops, manufactures, and markets generic prescription drug products in specialty generic markets. These markets include products in the areas of anesthesia, sterile liquid dose drugs (including respiratory inhalation drugs, ophthalmics, and injectable drugs), and transdermal patch products.
The full details of the transactions described in this press release can be found in our filings with the Securites and Exchange Commission.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving known and unknown risks, delays, and uncertainties that may cause the our actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks, delays, and uncertainties include, but are not limited to: risks associated with the uncertainty of future financial results, our reliance on our sole supplier, the limited diversification of our product offerings, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
Contact:
Corporate Information
PH: (208) 288-5550
Toll Free: (800) 414-1901
FAX: (208) 288-1191
Investor Relations
Craig Bird, 215-885-4981
