Contact: Peter Riehl, President & CEO
(5l9) 434 -1540
STELLAR INTERNATIONAL INC. AND SJ STRATEGIC INVESTMENTS LLC ANNOUNCE PRIVATE PLACEMENT OF OVER 4 MILLION COMMON SHARES OF STELLAR TO SJ
LONDON, ONTARIO and BRISTOL, TENNESSEE, FEB 19, 2004 --Stellar International Inc. (TSXV: SLX; OTCBB: SLRXF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, and SJ Strategic Investments LLC, a private Tennessee limited liability company, today announced that Stellar has agreed to issue 4,088,794 common shares to SJ for U.S.$ 0.74 per common share, which represents 19.9% of the issued and outstanding Stellar common shares, on a non-diluted basis (including the Stellar common shares issued on the private placement). The aggregate proceeds of the private placement are U.S.$3,025,708. The Stellar common shares issued on the private placement are subject to a four month hold period.
SJ is owned and managed by the founder and former Chairman and CEO of King Pharmaceuticals, John Gregory. Peter Riehl, Stellar International Inc. President and CEO stated, “We are especially pleased that SJ Strategic Investments has invested in our company. Their knowledge of the world wide pharmaceutical market will be extremely helpful. The funds received will allow us to aggressively pursue our strategic goals as we expand our business activities in Canada and abroad.”
In connection with the completion of the offering, SJ also obtained a right to subscribe for additional Stellar common shares in the future from time to time in order to maintain its percentage equity ownership interest in Stellar, subject to adjustment in certain circumstances, and subject to regulatory approval. SJ has also been granted the right by Stellar to participate as a selling shareholder in future offerings of common shares. In addition, Peter Riehl, Samuel Hahn and each of their spouses have entered into agreements with SJ pursuant to which they have granted rights of first refusal to SJ in respect of the sale of securities in Stellar owned by them.
The Stellar common shares were acquired by SJ for investment purposes only, and not with the purpose of influencing control or direction over Stellar. SJ may acquire further Stellar common shares, or dispose of its holdings of Stellar common shares, as investment conditions warrant. The Stellar common shares purchased by SJ in the private placement are all of the securities of Stellar that SJ owns, or exercises control or direction over.
SJ has its head office at 340 Edgemont Avenue, Suite 500, Bristol, Tennessee 37620, USA.
Stellar International has developed and is marketing three products in Canada based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis, Uracyst®-S and the Uracyst® Test Kit, Stellar’s patented technology for the diagnosis and treatment of Interstitial Cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreements for Skelite™ a proprietary synthetic bone-grafting product and NMP22® BladderChek™, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer which are expected to positively impact sales in 2004.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings.