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Xechem Achieves Another Milestone: Receives Approval of US $9.38 Million Funding by UPS Capital and the U.S. EX-IM Bank 5/21/2007
NEW BRUNSWICK, NJ, May 21, 2007 (MARKET WIRE via COMTEX News Network) -- Xechem International, Inc. (OTCBB: XKEM) announced today that the UPS Capital Business Credit and the United States Export Import (EX-IM) Bank has received all the required approvals in connection with a US $9.38 million EX-IM loan guarantee for Xechem Pharmaceuticals Nigeria, Ltd. (Xechem Nigeria). The UPS Bank has now approved the funding of the loan in accordance with the guidelines and requirements of the EX-IM Bank loan guarantee program.
In October 2006, EX-IM Bank, the official credit export agency of the United States, had approved a Comprehensive Credit Guarantee to support the loan, subject to the condition that Xechem Nigeria obtains supporting guarantees from two suitable local banks. Diamond Bank Plc and Platinum Habib Bank Plc, both headquartered in Nigeria, have issued the required guarantees, paving the way for finalization and funding of the UPS loan. Personal guarantees were also provided to these banks by Dr. Ramesh C. Pandey, Chairman & CEO of Xechem International, Inc. and Xechem Pharmaceutical Nigeria Ltd., and two Nigerian Board members, Dr. Adesoji Adelaja (also a Xechem International Board Member) and Mr. Isaac Inyang. The loan is for a five year term, bearing interest at LIBOR plus 2.75% and requires semi annual reductions of principal at 10% per period, together with payment of accrued, unpaid interest.
Funds Earmarked for Equipment, Corporate Offices and Manufacturing Facility
The funds provided by UPS Capital under the EX-IM guaranteed loan will be used to purchase the U.S. manufactured pre-fabricated corporate offices, warehouse, plant equipment and machinery needed by Xechem Nigeria to establish a state-of-the-art facility in the outskirts of Abuja, Nigeria, which is slated for completion during the fourth quarter of this year. The UPS loan is in addition to a separate loan of 350 Million Naira (approximately 2.7 million US Dollars) made in April 2007 to Xechem Nigeria by the Nigerian Export-Import (NEXIM) Bank for construction of manufacturing facility related costs, which supplements the 150 Million Naira (approximately US $1,157,000) of funds previously advanced by NEXIM. The expanded facility, once completed, will enable Xechem Nigeria to produce commercial scale quantities of NICOSAN(TM), Xechem's breakthrough medicine for the prophylactic management of Sickle Cell Disease (SCD).
"We are very pleased that all of the pieces to the approval and funding of this long awaited EX-IM guaranteed loan have finally come together," commented Dr. Ramesh C. Pandey, Chairman and CEO of Xechem Companies. "We can now turn our full attention to realizing our dream of completing the state-of-the-art laboratories and a cGMP production facility in Nigeria which will help us in the production of commercial scale quantities of NICOSAN(TM) to meet the needs of the millions of people afflicted with this terrible disease."
Dr. Pandey added, "We are very grateful to EX-IM Bank, UPS Business Credit, Diamond Bank and Bank PHB for their strong support for this important project and for helping us make the dream a reality. I am especially grateful to our consultants Financialbridge, Inc. and Mr. Isaac Inyang for their tireless efforts in seeing this through to a successful conclusion."
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Xechem Announces Addition of H. Scott English as Investor Relations Director and Ben White as Director of Finance and Accounting
May 30, 2007 10:35:03 (ET)
NEW BRUNSWICK, N.J., May 30, 2007 (BUSINESS WIRE) -- Xechem International, Inc. (XKEM, Trade ) today announced that it has hired H. Scott English as the Company internal Director of Investor Relations and Benjamin S. White III as the Director of Finance and Accounting.
Scott is the Founder of The Halsey Group, LLC an international business development firm which specializes in Biopharmaceutical/High Tech Sales and Public Relations. He has worked in several capacities for his client companies to successfully represent their interests and status to the client shareholder base.
Ben White was with Xechem in the early years as both a financial consultant and Controller and was the key financial manager during Xechem's IPO in 1994. Ben is a financial executive with over 30 years experience and has an established track record of revenue enhancements, cost reductions, cash management, fraud detections, and operations coordination/consolidation. He has served as a consultant with Moore Stephens, P.C. and Deloitte Touche USA LLP. He also served as a Regional Finance Director with PSE&G, a Fortune 200 Company, to continue post-acquisition analysis and integration of a $60M New York mechanical construction company. Mr. White continued in this position at the $500M mechanical construction division until its divestiture from PSEG.
Ben holds an MBA from Drexel University's LeBow College of Business, Philadelphia, which he completed in collaboration with Gallup's Leadership Capstone at Peking University in Beijing, China.
"I am very happy with our recent additions of Scott and Ben to the Xechem family." said company CEO and Chairman Dr. Ramesh Pandey. "From a Research and Development stage company to a company which has a product in the market and a number of other products in the pipe line, it is important that we build the company's structure. In taking this step we are building the confidence of our shareholders. Scott will play an important role in communicating and transmitting the right information to the shareholders." Mr. Stephen Burg, a long time Board of Directors member and a contact between the Company and shareholders untill now said "I sincerely welcome the addition of Scott to Xechem and hope with his past experience he will represent the Company in the best possible manner for all concerned. I am also happy that Ben White decided to come back, that shows his confidence in the future of the Company. I wish them well in their endeavors."
Mr. English is committed to a complete open door policy and encourages all shareholders to call any time for information He is also planning for a June 2007 release of the "Xechem Monthly Newsletter," "Changing Tomorrow."
Please visit the Xechem website at www.xechem.com and www.XechemNigeria.com for more information, or for Investor Relations please contact H. Scott English at Phone: (732) 247-3300 ext. 37
About Xechem
Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antidiabetic, antimalarial, antibacterial, antifungal, anticancer and antiviral (including AIDS) products from natural sources, including microbial and marine organisms. Its focus is on the development of proprietary technologies, including those used in the treatment of orphan diseases and other phyto-pharmaceuticals (natural herbal drugs). Xechem's mission is to bring relief to the millions of people who suffer from these diseases. Its recent focus and resources have been directed primarily toward the development of NICOSAN(TM) (to be marketed as HEMOXIN(TM) in the US and Europe). With the Nigerian regulatory approval now in hand, Xechem is working on the commercialization of the drug in Nigeria and the pursuit of US FDA and European regulatory approval. In addition to NICOSAN(TM), Xechem is also working on another sickle cell compound, 5-HMF, which it has licensed from Virginia Commonwealth University (VCU).
About NICOSAN(TM)
NICOSAN(TM) is an anti-sickling drug originally developed as NIPRISAN by the Nigerian scientists at the National Institute for Pharmaceutical Research and Development (NIPRD). In clinical studies conducted under NIPRD's auspices, the drug has shown to substantially reduce the degree of sickling of the red blood cells of those afflicted with the disease. While not a cure, the clinical trials have confirmed that the large majority of patients taking NICOSAN(TM) no longer experience sickle cell "crises" while on the medication, and even among those whose crises are not eliminated, the number and severity of the crises are substantially reduced. Through quality control/quality assurance (QC/QA) Xechem has standardized and verified the antisickling activity of the product, which is now called as NICOSAN(TM).
After the approval by the regulatory agency of Nigeria, National Agency for Food and Drug Administration and Control (NAFDAC), NICOSAN(TM) is being marketed in Nigeria since July 6th, 2006 on a limited basis. NICOSAN(TM) has Orphan Drug Designation in the US and EU countries.
For further information contact:
H. Scott English Director, Investor Relations Xechem (732) 247-3300 ext. 37
Forward Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks and uncertainties. Such risks include the risk that: (i) Xechem Nigeria will be unable to consummate the closing of its currently proposed bank financings; (ii) there could be delays and/or cost overruns in connection with the build out of Xechem Nigeria's pilot plant facility to a full scale commercial production facility; (iii) the Company and/or Xechem Nigeria could suffer significant dilution from the raising of additional capital until such point in time as they achieve cash flow break even status; (iv) doing business in Nigeria is subject to all of the risks of operation in a foreign country and
SOURCE: Xechem International, Inc.
Xechem H. Scott English, 732-247-3300, ext. 37 Director, Investor Relations
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