Xechem Announces Results of Annual Stockholder's Meeting
Xechem International, Inc. (OTC BB: XKEM) announced today the results of its Annual Stockholder Meeting, held earlier today at the company's offices in New Brunswick, New Jersey. Proxies representing a majority of the shares voted at the Annual Meeting were cast in favor of management and its policies and actions since the previous annual meeting, including the resolutions brought before the shareholders for a vote.
Xechem's Chairman and CEO, Dr. Ramesh Pandey, updated shareholders on developments at the company, with emphasis on the strides made by its subsidiary, Xechem Pharmaceuticals Nigeria, Ltd., in commercializing NICOSAN(TM), its Natural Herbal Drug for the prophylactic management of Sickle Cell Disease (SCD). Included in Dr. Pandey's presentation were slides showing the progress made in the construction of the new state-of-the-art commercial scale production facility which will adhere to the cGMP standards at its premises in Abuja, Nigeria, presently slated for completion by mid to late 2007. Dr. Pandey also recounted for those in attendance the extraordinary transformation that has occurred since 2002, when Xechem was developing the drug with borrowed equipment in temporary lab space. Now, he said, Xechem has built a modern, cGLP standard pilot facility from the ground up that rivals any in Nigeria and is currently producing and selling limited quantities of the drug at the highest standards. According to Dr. Pandey, "When you consider how far we have come with the limited resources available to us, including receiving approval from Nigerian drug regulators in July of this year and our success in bringing the drug to market, I am very pleased with what we have accomplished in a relatively short period of time. To be sure, much work still lies ahead, but I am optimistic that our progress will continue to accelerate and I look forward to delivering rewards to our shareholders."
At the meeting, the current slate of directors, Dr. Pandey of Highland Park, New Jersey, Mr. Stephen Burg, of Fairfield, California and Dr. Adesoji Adelaja of Okemos, Michigan, were all re-elected by wide margins to the board of the company. Other resolutions passed by shareholders included the ratification of the company's selection of Moore Stephens P.C. as its auditors, the adoption of a Stock Option Award Plan authorizing the grant of options to purchase 150 million shares of the company's common stock, and an approval to an amendment to the company's certificate of incorporation to increase the number of authorized shares of common stock from 1,950,000,000 to 5,000,000,000.
Board Takes Action to Voluntarily Limit Company's Ability to Issue Shares Without Further Shareholder Action
Despite the approval by shareholders to increase the company's authorized share capital, Xechem's board of directors held a special meeting immediately following the conclusion of the Annual Meeting and passed a resolution restricting the ability of the company to issue more than 3.5 billion total shares without a further vote of the shareholders. According to Xechem's Chairman and CEO, Dr. Ramesh C. Pandey, "The resolution increasing the company's authorized share capital was never a reflection of any present intention by the Company to issue shares in the amount of the proposed increase, but rather was designed to give the company maximum flexibility to respond to ever-changing events and opportunities, and to provide a hedge against unforeseen and unanticipated circumstances. However, after listening to the concerns of our shareholders, the Board was persuaded to voluntarily limit the ability of the company to issue more than 3.5 billion shares without further authority from the shareholders. I believe that the Board's action in limiting the issuance of shares will allay shareholder concerns while still providing the company ample flexibility to respond to future circumstances."
About Xechem
Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antimalarials, antiviral (including AIDS), anticancer, antifungal and antibacterial products from natural sources, including microbial and marine organisms. Its primary focus is on the development of phyto-pharmaceuticals (Natural Herbal Drugs) and other proprietary technologies, including those used in the treatment of orphan diseases. 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 and launch of NICOSAN(TM) (named HEMOXIN(TM) in the US and Europe) for the prophylactic management of Sickle Cell Disease (SCD). With the recent Nigerian regulatory approval of NICOSAN(TM), Xechem is now scaling-up the commercialization of the drug in Nigeria and making preparations for 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).
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.
Xechem International, Inc
Stephen Burg, Director
707-425-8855
Source: Business Wire (October 24, 2006 - 11:19 AM EST)
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