Star Scientific Files Annual Financial Report With SEC, Regains Compliance With NASDAQ Minimum Bid-Price Requirement
GLEN ALLEN, Va., March 16 Star Scientific, Inc. (Nasdaq: CIGX) filed its annual report on Form 10-K today with the Securities and Exchange Commission. The company reported net sales of $0.7 millions for 2009 compared to $0.5 million in total sales for the previous year. Cash and cash equivalents at year-end 2009 totaled $12.4 million compared with $6.5 million at year-end 2008. The net loss for 2009 totaled approximately $(22.8) million compared to a net loss of $(18.3) million for 2008. The increase in net loss between 2008 and 2009 was due in part to $3.8 million in costs associated with the jury trial of Star's patent infringement lawsuit against RJ Reynolds as well as to research expenditures of roughly $1.8 million during 2009, compared to $0.3 million during 2008.
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Resources allocated to research in 2009 were directed primarily to development and premarket analyses of CigRx(TM) by the company's Rock Creek Pharmaceuticals' subsidiary. CigRx(TM), which contains neither tobacco nor nicotine, is expected to enter a test market during 2010. The product is directed to adult smokers for use in temporarily reducing the desire to smoke. Star also expended roughly $0.4 million on research and development work in the area of formulation for its dissolvable smokeless tobacco products, Ariva® and Stonewall®. A targeted marketing and sales initiative, similar to the 2008 efforts for Stonewall Hard Snuff®, is underway to expand the retail presence of Ariva®. The current effort will be ongoing through third-quarter 2010. In addition, as the company reported in February, Star has submitted an application to the FDA for approval to market Ariva-BDL(TM) as a modified-risk tobacco product under the agency's new tobacco regulations.
The company also reported that after the close of trading on March 16 it received a letter from NASDAQ indicating that Star now has regained compliance with the NASDAQ minimum bid-price listing requirement. The company's stock has maintained a closing bid price above $1.00 for ten consecutive trading days, as required by the NASDAQ listing rules.
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This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Star Scientific, Inc. and its consolidated subsidiaries (collectively, the "Company") has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties and contingencies include, without limitation, the challenges inherent in new product development initiatives, the uncertainties inherent in the progress of scientific research, the Company's ability to raise additional capital in the future necessary to maintain its business, potential disputes concerning the Company's intellectual property, risks associated with litigation regarding such intellectual property, potential delays in obtaining any necessary government approvals of the Company's low-TSNA tobacco products, market acceptance of the Company's new smokeless tobacco products, competition from companies with greater resources than the Company, the Company's decision not to join the Master Settlement Agreement ("MSA"), and the Company's dependence on key employees and on its strategic relationships with Brown & Williamson Tobacco Corporation in light of its combination with RJ Reynolds Tobacco Company, Inc.
Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. See additional discussion under "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the SEC on March 16, 2010, and other factors detailed from time to time in the Company's other filings with the SEC, available at www.sec.gov. All information in this release is current as of this date, and the Company undertakes no obligation to update or advise upon any such forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
About Star Scientific
Star Scientific is a technology-oriented company with a mission to reduce the harm associated with tobacco at every level. It is engaged in the development of dissolvable smokeless tobacco products that deliver fewer carcinogenic toxins, principally through the utilization of the innovative StarCured® tobacco curing technology. Through its Rock Creek Pharmaceuticals subsidiary it is also involved in the development of nutraceuticals as well as products to address neurological and mood disorders. Star Scientific has a Corporate and Sales Office in Glen Allen, VA, an Executive, Scientific & Regulatory Affairs office in Bethesda, MD, and a manufacturing facility in Chase City, VA. Rock Creek has scientific and research offices in Gloucester, MA and a regulatory office in Washington, D.C.
See Star's website at: http://www.starscientific.com
Contact: Sara Troy Machir Vice President, Communications & Investor Relations email@example.com (301) 654-8300
SOURCE Star Scientific, Inc.
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