VLPI Expects to Close $750,000 Private Placement
Vital Living Products Inc., d.b.a. American Water Service, a water products company, confirmed this morning that Meijer, Inc., Grand Rapids, MI, has said that it plans to sell PurTest Anthrax Test chainwide in the pharmacies of its 152 stores in five states.
VLPI began development of PurTest Anthrax Test following Sept. 11. The test utilizes technology similar to that employed by VLPI's PurTest Bacteria Test, which has been on the market since 1996 and tests
water for the presence of coliform bacteria. PurTest Anthrax Test will allow anyone to test air, surfaces and water. The test detects the presence of anthrax germs and spores, providing consumers with results at home or in the workplace.
Donald R. Podrebarac, president and CEO of Vital Living Products, Inc. said, "With the development of PurTest Anthrax Test, we hope to provide consumers with a screening test for anthrax." Mr. Podrebarac further stated, "We are continuing to adjust the test media to enhance the performance of our product and we are targeting to begin shipments around Thanksgiving."
The company also announced that it expects to close a private placement of its common stock by the end of this week through which it will raise approximately $750,000 through the issuance of approximately 10.5 million shares of its common stock. Mr. Podrebarac said, "Closing the private placement will provide the company with the funds it needs to complete the development of PurTest Anthrax Test and bring the test to market."
After taking into account the shares to be issued in the private placement, the company will have approximately 17.8 million shares outstanding. In addition, the company presently has outstanding approximately $291,000 of convertible debentures that are freely convertible into shares of common stock. As a result of certain antidilution provisions contained in the debentures, following the closing of the private placement the debentures will be convertible into shares of common stock of the company at a conversion price of lesser of $.06 per share and fifty percent of the average of the lowest three inter-day trading prices for the common stock of the company during the 20 trading day period ending one trading day prior conversion.
Provided that the company's stock prices does not fall below $.05, following the full conversion of the debentures the company will have outstanding between approximately 23 million and 30 million shares of common stock.