WOODLAND HILLS, Calif., Dec. 7 HealthSport, Inc. (OTC Bulletin Board: HSPO), the preeminent formulator and developer of edible multi-layer film strips that deliver drug or dietary supplement active ingredients through buccal and sublingual absorption as well as oral ingestion, announced today that it has received $2.5 million from its strategic manufacturing partner, SMI Manufacturing, according to the terms of the stock purchase agreement between the Company and SMI dated November 6, 2009.
Under the terms of the stock purchase agreement, SMI was issued a 55% stake in HealthSport's outstanding common stock in exchange for $2 million at closing and a promissory note to the Company for $8 million. The first installment under the note of $500,000 was also paid at the closing which occurred on December 1, 2009. The investment is expected to accelerate HealthSport's growth and strengthen its alliances with large pharmaceutical companies to provide the next generation drug delivery technology.
"Given the growing importance of HealthSport's film strip technology in our forward planning, SMI has made a long term commitment to bringing HealthSport's next generation delivery platform into mass production under its strict cGMP guidelines for planned world-wide distribution in 2010," said Ferrel Raskin, SMI's CEO.
A full description of the transaction between HealthSport, Inc. and SMI Manufacturing can be found in the Form 8-K that was filed with the SEC on December 4, 2009.
About HealthSport, Inc.
HealthSport, Inc. (www.healthsportinc.com) is a fully integrated developer, manufacturer and marketer of unique and proprietary branded and private label edible film strip nutritional supplement and over-the-counter drug products. HealthSport's wholly-owned subsidiary, InnoZen, Inc. (www.innozen.com), is the preeminent formulator, developer and manufacturer of edible film strips that deliver drug or dietary supplement actives through buccal (between the cheek and gum) absorption as well as normal ingestion. 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 its edible film strip products.
About SMI Manufacturing
SMI Manufacturing (www.smimfg.net) is one of the United States' premier cGMP certified integrated manufacturer of nutritional supplements since 1996, providing formulation, packaging and logistics are all under one roof. SMI is expanding its manufacturing capabilities to manufacture proprietary drug delivery system products utilizing HealthSport Inc.'s edible Bi-layer Film Strip technology and formulation patents. SMI will have 4 production lines in Tempe, AZ.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
SOURCE HealthSport, Inc.