TORONTO, Sept. 11, 2006 (PRIMEZONE) -- Swiss Medica, Inc. (OTCBB:SWME) is pleased to announce that Swiss Medica GmbH, a German privately held company, has fulfilled all legal obligations under the laws of Germany and has been approved to raise up to 10 million Euros in gross proceeds via a prospectus offering. These funds will be used to invest into non-convertible preferred shares of Swiss Medica, Inc. at a price of 1.25 euro per preferred share.
The preferred shares are not convertible into publicly traded common shares of Swiss Medica, Inc. and will have a dividend yield of 16 percent. The preferred shares cannot be redeemed prior to December 31, 2008 and mature on December 31, 2011.
Information on Swiss Medica GmbH is only available in German at http://www.swissmedica.de/
Raghu Kilambi, Swiss Medica's CEO, noted, "While this regulatory approval took longer than expected, we feel that the structure of this proposed financing provides much long-term flexibility for Swiss Medica Inc. as it grows its North American and international businesses. Swiss Medica Inc. plans to use proceeds of this financing to fund its growth including working capital investment, sales/marketing and debt reduction."
German individual and institutional investors are expected to invest in this financing, which will have multiple closings over the next several months.
The subject of the German regulatory approval by the BaFin is only that the offer includes formally all information required under the laws of Germany for this kind of offering but not that the contents of the offering are true or that the contents have been controlled by BaFin.
The information contained herein does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities for sale in the United States and Canada. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States unless registered or pursuant to an exemption from such registration. No public offering of securities is being made in the United States.
About Swiss Medica, Inc.
Swiss Medica is a specialty pharmaceutical company focused on commercializing over-the-counter clinically tested, patented all-natural products that relieve chronic ailments. Swiss Medica builds its brands through innovative and focused distribution and marketing strategies. Swiss Medica's mission is to be a world leader in the commercialization of over-the-counter, safe and effective chronic ailment treatments. Please visit our websites at www.swissmedica.com, www.O24zone.com and www.pmsescape.com.
Swiss Medica's flagship product, the O24 Essential Oil Pain Neutralizer, holds U.S. Patent No. 6,444,238B1. The O24 pain relief solution has been used and recommended for its fast-acting and long-lasting benefits by healthcare professionals and athletes in the United States, Canada and in Europe. O24 is widely available over-the-counter throughout the United States and Canada in leading pharmacies and other retailers. Customers can also visit www.O24zone.com, for ordering details and store locators for the nearest pharmacy.
Swiss Medica has recently launched the patented O24 Fibromyalgia pain reliever (U.S. Patent No. 6,444,238B1) over-the-counter in North American retailers. The National Fibromyalgia Association (NFA) recently awarded O24 Fibromyalgia their first NFA Seal of Approval. Over 10 million Americans suffer from the long-term pain associated with Fibromyalgia. In a randomized double blind clinical trial conducted in 2005, 88 per cent of the patients who used O24 Fibromyalgia reported mild to markedly better improvement, versus only 7 per cent who used the placebo. Customers can also visit www.O24zone.com, for ordering details and store locators for the nearest retailer.
Swiss Medica also distributes PMS Escape(r) which holds U.S. Patent Nos. 5760014 and 5612320. PMS Escape(r) is a specially formulated group of carbohydrates, vitamins and minerals, clinically proven to reduce changes in mood and appetite that women experience during the premenstrual period. Customers can also visit: www.pmsescape.com for additional information and ordering details.
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Swiss Medica, Inc. (Company). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, the amount of investor interest in the Swiss Medica preferred stock securities. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended December 31, 2005 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K.