RENO, Nev.--(BUSINESS WIRE)--Dec. 7, 2005--Lifeline Biotechnologies, Inc. (Pink Sheets: LBTN - News) announced today that the Company will reduce their debt by approximately $250,000 by forgiving past salaries owed to management. These reductions will be ongoing, equivalent to an annual Company savings of approximately $150,000 to $200,000 in operating expenses. This is a first step in a process designed to increase shareholder value. Additionally, Lifeline Biotechnologies' management is retiring approximately 51 Million Shares and will reissue stock options at .05 cents per share. ADVERTISEMENT
Due to the increase in the outstanding shares, as a result of shares having been issued principally to acquire financing required for operations and product development, the company has committed to a program designed to enhance shareholder value through a comprehensive strategy, starting with the reduction of the Company's debt. The debt reduction will enable Lifeline to better implement their business strategy.
"We believe that this reduction of debt will add substantial value for our shareholders," said Jim Holmes, CEO of Lifeline Biotechnologies, Inc. "This is the first step in a restructuring process. This reduction of debt and stock retirement is designed to also compensate for any additional shares that may be issued in order to continue funding the Company. We firmly believe that this is in the best interests of both our shareholders and the company."
About Lifeline Biotechnologies, Inc.
Lifeline Biotechnologies, Inc. is a company with innovative medical technologies committed to the improvement of the quality of life through exceptional health care systems. These technologies focus on assisting in the prevention and early detection of a number of disease conditions. The company's Cancer Detection technologies deal with cutting edge innovation to assist practicing physicians in the delivery of quality medical care. The MastaScope(TM) is used in the assisting of the early detection of cancer and other abnormalities of the breast. The MastaScope(TM) has completed development and has entered the marketplace in the US and internationally. The First Warning System(TM) for assisting in the early detection of breast cancer and the OvaScope(TM) for assisting in the early detection of ovarian cancer are continuing to be developed by the company. More information is available at the company's website: www.lbti.com.
And here is the question...Usually debt reduction is a good thing, but today saw a lot of sells im not in this but the news popped up on the computer so I watched it today. They are starting to distribute their product now, and I would imagine debt reduction is a good thing?
If I am missing something here please help me out??
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