MOSCOW, April 10, 2014 /PRNewswire/ -- In response
to shareholder inquiries, CEO Dave
Anderson offers further comment on the improved financial
position of Rafarma:
"Due to the overwhelming response to our recent news release
regarding the VEBank loan restructuring the company would like to
provide some additional details," said Anderson. A key element of
the restructuring is a deferment creating significant cost
savings--particularly when compounded. Another very significant
element is an additional credit line of € 25,000,000 (EUR).
Both elements essentially create "new money" through the
restructuring process. The additional credit line will allow
for accelerated production, licensing and deployment of the
pharmaceutical products currently in development. It is expected
that this additional money will allow the company to expand at a
much more accelerated rate.
Mr. Anderson commented further: "This restructuring has come at
the most opportune time in the development of the company. Even
without a precise quantification of the projected cash flow
savings, it is abundantly clear that it is considerable and the
effect for investors could be significant. The realization of
these improved cash flows will undoubtedly help the company
grow."
The original loan was due to begin payments in the beginning of
April, 2014. The restructuring allows Rafarma to defer payments
until 2018. The additional line of credit offered to the
company also creates additional working capital to accelerate
growth initiatives. Management is confident that this substantial
cash infusion will propel Rafarma into one of the largest and most
respected pharmaceutical companies in the Russian Federation.
About Rafarma Pharmaceuticals, Inc.
Operating from a new 270,000 square-foot state-of-the-art
manufacturing and distribution facility in Russia, Rafarma Pharmaceuticals produces
generic antibiotics and specialty pharmaceuticals in addition to
its own line of proprietary products that are approved by the
Ministry of Health of Russian
Federation. For the last three years, the Russian Government
has been highly focused on bolstering the development of the
nation's domestic pharmaceutical industry. Rafarma's mission is to
work under the auspices of these aggressive federal initiatives to
fast-track the modernization of Russia's pharmaceutical industry.
For more information on Rafarma Pharmaceuticals, visit:
http://rafarma.com
For more information on VEBank, visit:
http://www.veb.ru/en/
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements.
Actual results, performance or achievements could differ materially
from those contemplated, expressed or implied by the
forward-looking statements contained herein. These forward-looking
statements are based largely on the expectations of the Company and
are subject to a number of risks and uncertainties. These include,
but are not limited to: the impact of economic, competitive and
other factors affecting the Company and its operations, markets,
product, and distributor performance.
RELATED LINKS
Website: www.Rafarma.com
Facebook: www.facebook.com/Rafarmainfo
Twitter: www.twitter.com/Rafarmainfo
RELATED LINKS
http://rafarma.com
SOURCE Rafarma Pharmaceuticals, Inc.
