LAFAYETTE, La., Aug. 02, 2017 (GLOBE NEWSWIRE) -- RedHawk Holdings Corp. (OTCQB:IDNG) (“RedHawk” or the “Company”) announced today that it recently completed its financial and legal due diligence and upon execution of final agreements, the Company will increase its ownership interest in EcoGen Europe Limited (“EcoGen”) to 75%. For the nine-month period ended March 31, 2017, the Company’s Medical Device & Pharmaceutical business unit previously reported operating income of approximately $140,000 on net revenues of approximately $800,000.
In May 2017, Kav S. Hundle, EcoGen’s former Managing Director and sole member of EcoGen’s board of directors, resigned his positions with EcoGen due to health reasons. At the time of Mr. Hundle’s resignation, Mr. Nimesh Dhokia was appointed EcoGen’s Managing Director and sole member of EcoGen’s board of directors to replace Mr. Hundle. Concurrent with RedHawk’s increased ownership position, membership on EcoGen’s board of directors was increased to now include the appointments of G. Darcy Klug, RedHawk’s Chairman and Chief Financial Officer, and Thomas J. Concannon, RedHawk’s Chief Executive Officer.
On March 23, 2016, RedHawk Pharma UK Ltd (“RedHawk Pharma”), a wholly-owned subsidiary of RedHawk, initially acquired a 25% stake in EcoGen, a United Kingdom company specializing in the manufacturing and the marketing of certain branded generic pharmaceuticals.
The Company said today that it is also considering further expansion of EcoGen’s licensing assets and dossiers. In order to continue pursuing organic and strategic pharmaceutical growth opportunities, the Company announced today that RedHawk Pharma has signed a non-binding letter of intent to acquire a portfolio of European (“EU”) hospital injectable anti-infective generic licenses for the ultimate issuance of market authorizations in up twelve (12) EU markets for seven (7) core anti-infective products including piperacillin-tazobactam (PipTaz), meropenem, imipenem/cilastatin and the four (4) most widely used cephalosporins.
The Company hopes to complete the definitive purchase agreement by September 30, 2017 but in no event later than December 31, 2017. The transaction is contingent upon, among other things, approval by RedHawk’s board of directors, the negotiation, acceptance and execution of a mutually acceptable definitive asset purchase agreement, satisfactory completion of legal and financial due diligence, and the closing of acceptable financing or the receipt of additional equity capital, if necessary.
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy Corp., is a diversified holding company which, through its subsidiaries, is engaged in sales and distribution of medical devices, sales of branded generic pharmaceutical drugs, commercial real estate investment and leasing, sales of point of entry full-body security systems, and specialized financial services. Through its medical products business unit, the Company sells WoundClot Surgical - Advanced Bleeding Control, the Sharps and Needle Destruction Device (SANDD™), the Carotid Artery Digital Non-Contact Thermometer and Zonis®. Through our United Kingdom based subsidiary, we manufacture and market branded generic pharmaceuticals, certain other generic pharmaceuticals known as “specials” and certain pharmaceuticals outside of the United Kingdom’s National Health Service drug tariff referred to as NP8’s. Our real estate leasing revenues are generated from various commercial properties under long-term lease. Additionally, RedHawk’s real estate investment unit holds limited liability company interest in a commercial restoration project in Hawaii. The Company’s financial service revenue is from brokerage services earned in connection with debt placement services. RedHawk Energy holds the exclusive U.S. manufacturing and distribution rights for the Centri Controlled Entry System, a unique, closed cabinet, nominal dose transmission full-body x-ray scanner.
Cautionary Statement Regarding Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are all statements other than statements of historical fact. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. The words “anticipate,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements.
Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties. In evaluating forward-looking statements, you should consider the various factors which may cause actual results to differ materially from any forward-looking statements including those listed in the “Risk Factors” section of our latest 10-K report. Further, the Company may make changes to its business plans that could or will affect its results. Investors are cautioned that the Company will undertake no obligation to update any forward-looking statements.