RANCHO SANTA MARGARITA, Calif., Jan. 15, 2003 (PRIMEZONE) -- BioCurex Inc. (OTCBB:BOCX) announced today that it is considering a strategy which includes the possible adoption of "custody only" or "certificate only" trading of its shares as a measure to protect naked short selling of the company's stock. The Company continues to be concerned about what it perceives as an artificially depressed stock price. Dr. Moro, President of BioCurex, states, "We are one of very few young biotechnology companies with products available and we have a superb technology platform for diagnostic and therapeutic management of cancer. We also have issued patents, regulatory approvals in North America and distributors for our first products. Further, our continued development of a blood test for cancer detection is progressing well and we have recognition of our RECAF technology in a licensing agreement. The hard cash investment that went into the company to achieve all this progress is several times higher than the company's market capitalization. Therefore, we are frustrated by what we believe to be 'naked shorts,' which have driven down our valuation substantially. We are beginning to institute an overall restructure our company in order to maximize the shareholder value and financing opportunities." Within this context, the company has accepted Dr. P. Slowey's resignation as our CEO while working on a consultancy arrangement for sales and business development.
About naked shorts: In a "naked" short sale of stock, the short positions are not declared, and the shares are not borrowed to cover the short sale. The shares are actually sold without delivering the stock to the buyer. This effectively creates "virtual" shares that are not backed up by real shares, thus artificially inflating ownership and devaluating the price of the stock.
Under "custody only" trading, BioCurex would implement a share transfer system requiring the delivery of physical stock certificates. The investor continues to use their broker for purchases and sales and would request the physical delivery of all of their shares. The certificates received by the Company's transfer agent for selling by an investor would be cancelled and a new certificate for an equal number of shares would be issued in the name of the buyer. Therefore, no certificates would be issued in the name of Depository Trust Company, CEDE & Co. or any other nominee and BioCurex shares would no longer clear through the DTC system. This procedure is one way to ensure buyers that share purchases will be from bona fide stockholders and not from naked short sellers. It would be in the best interests of all shareholders to ensure that they participate in this 'custody only' trading since the share price will more properly reflect the company's status.
The Company has not yet made a final decision regarding the implementation of "custody only" trading and it intends to seek the approval of its stockholders prior to taking such action.
Dr. Moro continued, "We are focused on success and we appreciate the patience of our investors, many of whom have been with us from the beginning. We believe that the incoming changes to our overall market strategy will result in a more realistic valuation of the company."
BioCurex, Inc. is a biotechnology company that is developing products based on patented/proprietary technology in the areas of cancer diagnosis, tumor imaging ad therapeutics. The technology identifies a cancer marker known as RECAF(tm), which is found on malignant cells from a variety of cancer types but is absent in most normal or benign cells. Detailed information about BioCurex may be obtained from their website at http://www.biocurex.com.
Statements in this press release, which are not historical facts, are "forward-looking statements" within the meaning given to that term in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.