$16 Million Cash On Hand and No Debt
NAPA, Calif., Oct. 13 /PRNewswire-FirstCall/ -- Senetek PLC (OTC Bulletin Board: SNKTY), a life sciences company engaged in the development of technologies that target the science of healthy aging, announced today that the company continues to maintain a strong, debt-free financial position. Current cash balances are in excess of $16 Million; $10 Million of which is invested in fully FDIC insured bank certificates of deposits and $6 Million on deposit in a money market account with Columbia Management, a wholly owned subsidiary of Bank of America, one of the strongest and most stable financial institutions in the world.
Management and the Board of Directors are closely monitoring current economic conditions relative to planned infrastructure spending and are taking all necessary steps to manage cash reserves while developing new technologies and investing in marketing and sales of current products to ensure growth and profitability. Given the current economy, Senetek plans a gradual build out of the infrastructure and new launches.
CEO, Frank Massino and CFO, Bill O'Kelly have requested that a portion of their salaries be paid in stock in lieu of cash. This proposal will be formally presented and voted upon at a board meeting this week. Existing trading window rules have precluded company insiders from purchasing stock since September 16, 2008. "By taking stock instead of cash salaries, the executive team demonstrates its faith in the company while working to conserve cash reserves," says Mr. O'Kelly.
The company will continue the launch of Pyratine-6(TM), Senetek's next generation of skin care based on advanced cytokinin technology, which is garnering support from leading dermatologists, plastic surgeons and thought leaders in aesthetic medicine. Physician feedback has shown Pyratine-6(TM) to be effective in treatments related to pre and post light facial peels, post laser resurfacing and bruising from injectable fillers with clinical trials being scheduled to confirm these findings. Senetek remains confident that Pyratine-6(TM) revenues will reach a $10.8 Million annual run rate by December 2009 as previously forecasted. By first establishing brand credibility with key influencers, Senetek's growing sales team will have the tools needed to quickly and effectively achieve sales goals.
"Despite current world economic uncertainty, Senetek is in a secure and strong position to execute on its sales, marketing and development strategy," says Mr. Massino. "Senetek's strength will continue to be the development and commercialization of patentable products with treatment advantages."
About Senetek, PLC
Senetek PLC (OTCBB: SNKTY) is a life sciences company engaged in the development of technologies that target the science of healthy aging. The company's extensive research collaborations have resulted in a strong pipeline of patented compounds and products with broad therapeutic applications and a leading presence in dermatology. Senetek collaborates with established specialty pharmaceutical companies in the final development and marketing of its proprietary products, most recently resulting in the development of the best-selling anti-aging product sold in the North American physician market. For more information, visit the company's website at http://www.senetekplc.com.
This news release contains statements that may be considered 'forward- looking statements' within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements by their nature involve substantial uncertainty, and actual results may differ materially from those that might be suggested by such statements. Important factors identified by the Company that it believes could result in such material differences are described in the Company's Annual Report on Form 10-K for the year 2007. However, the Company necessarily can give no assurance that it has identified or will identify all of the factors that may result in any particular forward-looking statement materially differing from actual results, and the Company assumes no obligation to correct or update any forward-looking statements which may prove to be inaccurate, whether as a result of new information, future events or otherwise.
|SOURCE Senetek PLC|
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