Company Announces Lowest Quarterly Loss and Expands Merger Options
Irvine, CA, August 15, 1997 — InVitro International (Symbol INVI) today reported results for its third quarter ended June 30, 1997. The net loss for the quarter was $198,000 ($0.02 per share), a 42% decrease compared to $341,000 ($0.03 per share) reported for the same period last year. Revenues for the quarter were $181,000 compared to $327,000 for the same quarter in fiscal 1996.
On Friday, June 13, 1997, the U.S. Environmental Protection Agency (EPA) issued the final approval for CORROSITEX® in the Federal Register as Solid Waste Method 1120. This method lists CORROSITEX as an approved test for characterizing dermal corrosivity for solid waste (40 CFR Parts 260, 264, 265, and 266). CORROSITEX is an in vitro test system that mimics the effect of corrosives on living skin while lowering testing costs and providing quicker results when compared to in vivo.
During the first five months of 1997, the Company announced it had entered into letters of intent to pursue merger negotiations with two other business entities. Negotiations as to the first proposed merger were terminated by mutual agreement and activities relating to a proposed merger with Miragen Inc. have been suspended unless Miragen obtains additional financing.
The Company’s management is currently negotiating a proposed merger with another business engaged primarily in the development and sale of natural gas resources, but a definitive merger proposal has not been executed. Management plans to pursue merger negotiations with any suitable prospective candidate.
The Company’s management anticipates that existing cash resources of InVitro are adequate to sustain its current business operations only through the end of September 1997, and that increases in internal sales revenue and /or additional capital investment, neither of which can be predicted at present, will be required for InVitro to have sufficient resources to sustain its operations thereafter. The Company’s management has determined that InVitro will be forced to cease active business operations, other than ongoing efforts to market Guardian DNA products held in inventory, should the Company fail to enter into a letter of intent or other agreement to merge with another business enterprise by approximately the end of August 1997.
InVitro International is engaged in the development, manufacture and sale of quality, proprietary preventive products and services to ensure the safekeeping of humans and the environment, and to minimize animal testing in commercial and academic enterprise.
The statements made in this press release contain certain forward looking statements within the meaning of section 27a of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 that involve a number of risks and uncertainties, including the risk that InVitro may be unable to complete the proposed transaction. Actual events or results may differ from InVitro’s expectations. In addition, investors should be apprised of risk factors discussed from time to time in the Company’s filings with the Securities and Exchange Commission, including without limitation information set forth in Exhibit 99.1 filed with the Company’s Annual Report on Form 10-KSB for the fiscal year ended September 30, 1996.