WOODLAND HILLS, Calif., Feb. 13, 2008 (PRIME NEWSWIRE) -- HealthSport, Inc. (OTCBB:HSPO), through its wholly-owned subsidiary, InnoZen, Inc., and Migami, Inc. (Pink Sheets:MIGA) have agreed on the terms of a joint venture to build two state-of-the-art edible film strip manufacturing facilities in California and Asia. The U.S. joint venture will be called Pacific Manufacturing Group, LLC ("PMG") and will be based in Oxnard, California.
Migami has entered into a separate agreement with Korean Tobacco and Ginseng Company ("KT&G") (www.ktng.com), a multi-billion dollar Korean conglomerate, to build a second manufacturing facility in Korea. PMG will have an interest in the Korean facility. KT&G will arrange for the land and construction of the South Korean facility under an agreement with Migami. It is anticipated that KT&G will play a major role in commercializing the edible film strip technology in Korea.
"We are confident that delivering pharmaceuticals and other drugs in edible film is a great new technology, and we expect it to be well received by consumers in Asia and around the world. We are excited to be partnered with the first company ever to deliver drug actives in edible film strips," said John Park, President of Migami.
Migami has invested $1,000,000 in capital for PMG's U.S. plant and has agreed to fund an additional $2,000,000 within the next 30 days. InnoZen invested its proprietary manufacturing technology to launch the new venture in addition to moving its manufacturing staff to the new joint venture. HealthSport will own 52% of PMG following the completion of the funding by Migami. The parties have been working together on architectural and engineering plans for both the California and Korean facilities for months and expect to commence construction of the manufacturing facility in California by February 15, 2008.
Both facilities will be constructed to conform to current good manufacturing practices, or cGMP. The California facility will, when completed, have a bulk film production capacity of more than 1.4 billion strips per year and the Korean facility will have a similar capacity. The California facility will be constructed in phases with Phase 1 expected to be completed in July 2008. Once construction is completed, PMG will immediately request pharmaceutical and governmental audits of its California plant, including a food inspection by the FDA and a pharmaceutical inspection by the FDA or the Australian Therapeutic Goods Administration. We also intend to register our California facility with the Drug Enforcement Administration. It is anticipated that similar governmental approvals will be sought for the Korean facility.
Upon completion later this year, the California facility will become HealthSport's primary manufacturing facility for edible film strips containing pharmaceuticals, over-the-counter drugs and nutritional and dietary supplements. InnoZen will continue to provide HealthSport's research and development for new edible film strip products. The California facility will also provide the needed space to prepare and assemble cosmetic products for Migami. The new facilities and equipment will provide substantially increased film strip manufacturing capacity and operating efficiency as compared to InnoZen's current research, development and manufacturing facility at Woodland Hills, California.
"Our partnership with Migami to create a world class production facility will provide us with the capability to meet the needs of our future pharmaceutical development partners, while creating a gateway to international markets in Asia and worldwide. This is an integral step in reaching our strategic goal to become the premier film strip drug delivery company in the industry and expanding our product portfolio," stated Robert Kusher, CEO of HealthSport.
About HealthSport, Inc.
HealthSport (http://www.healthsportinc.com) is a fully integrated developer, manufacturer and marketer of unique and proprietary branded and private label edible film strip nutritional supplements and over-the-counter drugs. The Company owns three subsidiaries -- Enlyten, Inc., Cooley Nutraceuticals, Inc, and InnoZen, Inc. Enlyten (http://www.enlytenstrips.com) was created to market and distribute HealthSport's products. Cooley Nutraceuticals is responsible for the development and marketing of the Fix Strips (http://www.fixstrips.com), a nutritional supplement formulated to provide rapid relief from hangover symptoms. InnoZen (http://www.innozen.com) is the preeminent formulator, developer and manufacturer of edible film strips that deliver drug actives through buccal (between cheek and gun) absorption. InnoZen's proprietary edible film strip delivery technology is superior to any other competitive edible film strips currently available on the market. InnoZen has five patents pending and has developed numerous trade secrets which it incorporates in the development and manufacturing process of edible film strips.
About Migami, Inc.
Migami, Inc. (www.migami.net) is an international company focused on developing health, wellness, beauty and anti-aging products. Migami has acquired a portfolio of state-of-the-art drug delivery technologies and has developed a variety of pharmaceutical, over-the-counter, nutritional supplement and cosmetic products and is working with several Asian conglomerates to distribute these products. Migami is currently working with HealthSport in marketing its edible film strip products in Korea, Japan, China, Vietnam and India.
Forward-looking statements in this release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities.