LA JOLLA, Calif., March 20, 2013 (GLOBE NEWSWIRE) -- Innovus Pharmaceuticals, Inc., ("Innovus Pharma") www.innovuspharma.com (OTCBB:INNV) today announced that it received a $0.5M funding commitment from its President and Chief Executive Officer, Dr. Bassam Damaj.
In connection with this commitment, the Company's independent registered public accounting firm has issued its audit opinion on the Company's 2012 and 2011 financial statements free of a "going concern" qualification.
Damaj stated, "This financing commitment is an important step in the execution of the Company's growth plans. It represents my personal belief in the Company's growing pipeline of products and its future. I believe potential commercial partners will respond favorably to this commitment and to the associated removal of the "going concern" qualification from our audit opinion."
The funding commitment takes the form of an amendment to the convertible debenture previously entered into between Dr. Damaj and the Company. Under the amendment, Dr. Damaj agrees to provide up to $0.5M to the Company (including amounts previously provided) if the Company has insufficient liquidity from other sources to meet payment obligations arising in the ordinary course of business. The funding commitment terminates January 1, 2014 or earlier if the Company raises net proceeds of at least $500,000 in other financing transactions. For more information, please see the Company's Form 10-K filed with the Securities and Exchange Commission on March 19, 2013.
About Innovus Pharma
Innovus Pharma, headquartered in La Jolla, CA, is an emerging pharmaceutical company that delivers innovative and uniquely presented and packaged healthcare solutions through both prescription medicines and consumer and health products. The Company intends to grow by developing, in-licensing, acquiring and marketing proprietary respiratory, dermatology, autoimmune and sexual dysfunction pharmaceutical products intended for better patient compliance and results. The Company is building a robust pipeline with a wide range of approved products, including an FDA OTC compliant arthritis pain relief product, APEAZ™, CIRCUMSerum™ an OTC product for increasing skin sensitivity to the penis, a line of prescription products in dermatitis as well as product candidates across each phase of development, such as its VAP-1 program for psoriasis and dermatitis. For more information, go to: www.innovuspharma.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that may individually or mutually impact the matters described in this release for a variety of reasons, many of which are outside the control of Innovus Pharma. These risks and uncertainties include, but are not limited to Innovus Pharma's ability to negotiate the definitive agreements for the acquisition of CIRCUMSerum and the line of prescription products in determitis on terms and conditions satisfactory to it, Innovus Pharma's ability to raise sufficient capital to fund its operations and growth strategy in the long term, Innovus Pharma's ability to achieve its development, regulatory, commercialization and financial goals for its existing products, its ability to acquire additional products, and its ability to achieve development, regulatory, commercialization and financial goals for such additional products. Readers are cautioned not to place undue reliance on these forward-looking statements as actual results could differ materially from the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's most recent annual report on Form 10-K and other filings made with the SEC. Copies of these reports are available from the SEC's website or the "Investors" section of Innovus Pharma's website at innovuspharma.com.
Innovus Pharma Contact: Kevin Holmes Chesapeake Group T: 410-825-3930