PALO ALTO, Calif., June 30, 2004 (PRIMEZONE) -- Human BioSystems (HBS) (OTCBB:HBSC), a biomedical company focused primarily on biological preservation solutions for blood platelets and donor organs, announced today it has signed a $5 million equity credit line agreement with Dutchess Private Equities Fund, LP of Boston.
Under the terms of the agreement, HBS may elect to receive as much as $5 million from Dutchess in common stock purchases over the next three years.
"This is an extremely important step in the progress and future of HBS," Harry Masuda, President and CEO said. "The funds will enable us to complete our human infusion studies with our blood platelet preservation solution and eventually with our donor organ preservation system."
Mr. Masuda said that they selected Dutchess as a primary funding source after conducting comprehensive research and due diligence efforts. "We are impressed with the professionalism and high standards of the personnel at Dutchess and companies with which they have entered into similar financial agreements."
"The financing supplied by Dutchess could secures Human BioSystems' position as a leader in the field of biological preservation," Mr. Masuda stated. "We have created two major solutions and technologies that we believe will dramatically advance the medical benefits of blood platelets and donor organs. These are two areas of medicine that have sadly lagged behind in the new era of scientific achievements we have witnessed during the past ten years. Currently blood platelets have a preservation period of only five days and they are stored at room temperature making them vulnerable to bacterial infections. Basically, this system has not changed in the past 40 years. Our platelet technology has the potential to double the storage time for blood platelets and essentially eliminate bacterial problems. The storage and maintenance of donor organs, such as hearts, livers, kidneys, lungs and pancreas is also an arena that has not advanced much in the past 40 years. When you consider that surgeons only have four hours in which to transplant a heart from the time it has been harvested from a donor, it's not hard to imagine the immense opportunities we have before us. In my opinion, our donor organ technology has demonstrated a potential for extended shelf life of donor organs that is far and beyond anything ever attempted before."
Mr. Masuda went on to say that the funds will greatly help bring the HBS technologies to a point where the company and its' technology may become very attractive to major drug companies and potential strategic partners.
Dr. Luis Toledo, HBS Chief Medical officer said he is very excited about the opportunities for the company's growth and success. "This very timely funding will give us a head start in the exciting field of biological preservation. It is very likely that we will not only save thousands of lives with our technologies, but millions of dollars as well."
Human BioSystems was founded in 1998 became a public company in 2000. Human BioSystems trades on the OTC Bulletin Board and the Berlin Stock Exchange.
HBS is headquartered in Palo Alto, California.
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, results from future sales and marketing efforts, failure to obtain regulatory approval for the Company's products, if required, failure to develop a product based on the technology we have acquired, failure of any such products to compete effectively with existing products, and the ability of the Company to fund marketing and sales efforts that may be required to effectively sell in the licensed territories .and other factors discussed in filings made by the Company with the Securities and Exchange Commission.