BioNeutral Enters Into Equity Purchase Agreement With Southridge Partners II
MORRISTOWN, N.J., Dec. 13, 2012 /PRNewswire/ -- BioNeutral Group, Inc. (OTCBB: BONU) a specialty life science technology based company is pleased to announce it has entered into an Equity Purchase Agreement for up to $10,000,000 of the Company's registered common stock by Southridge Partners II, LP ("Southridge"), an institutional investor based in Ridgefield, Connecticut. This funding will enable the Company to further accelerate its commercial strategy of its Ygiene™ and Ogiene™ product lines.
Pursuant to the Agreement, the Company has the right, at its discretion, to sell to Southridge up to $10 million of its common stock from time to time over a 36-month period. The Company will have the right, but is not obligated, to sell stock to Southridge depending on certain conditions as set forth in the Agreement. Both parties have also entered into a Registration Rights Agreement under which, the Company agreed to file a registration statement with the Securities and Exchange Commission with respect to the Shares. The ability to draw down funds pursuant to the Equity Purchase Agreement is conditioned on an effective registration statement.
Mr. Mark Lowenthal, BioNeutral Group, Inc. President and CEO, comments, "This is an important step for BioNeutral to have accomplished as a means to fund a portion of our working capital needs. Having won the backing of a forward-thinking institutional investor says a lot about their conviction regarding our vision, management team, and overall market demand. We believe that having a flexible and low cost funding instrument in place allows us to efficiently move our commercialization strategy forward."
About BioNeutral Group, Inc.
Headquartered in Morristown, New Jersey with lab facilities at the New Jersey Institute of Technology in Newark, BioNeutral Group, Inc., is a specialty technology-based life-science company that has developed a technology platform that neutralizes harmful environmental contaminants, toxins and dangerous micro-organisms including bacteria, viruses, mold, fungi and spores. BioNeutral's products, Ygiene® and Ogiene®, kill germs and clean surfaces with a dramatic increase in speed and power over their rivals in the marketplace. BioNeutral's proprietary platform technology has been proven effective in surface, water and airborne applications. Its antimicrobial line of products under the Ygiene® brand have been approved by the EPA for sale in the United States and has previously been approved for sale in Germany and it is also permitted to be sold in the UK, France and Sweden. Auto Neutral is a registered trademark of BioNeutral Group, Inc. For more information on BioNeutral, including a listing of company products, leadership and background please visit www.bioneutral.com.
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Southridge is a diversified financial holding company specializing in direct investment and advisory services to small and middle market companies and seeks investments in emerging growth areas, domestically and in international markets. Southridge has successfully participated in providing over $1.7 billion in capital to companies in the United States, Asia, Canada, the United Kingdom and Australia amongst other markets. For more information
Forward-Looking Statements: This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those described in the Company's filings with the Securities and Exchange Commission. BioNeutral routinely tests its formulations against those of its competitors. The results are published to let shareholders know how the Company's technology compares with known formulations in the market place. Any product claim for antimicrobial activity requires approval from the EPA or FDA, depending upon where and how the formulations are used. The EPA has approved and registered the Company's data and findings specific to Ygiene-206. BioNeutral's antimicrobial formulations will be marketed under the brand name Ygiene® and are available for sale in the United States.
SOURCE BioNeutral Group, Inc.