manufacturing facility have been reclassified as "assets held for sale".
This reclassification shifts $10.3 million of assets on the balance
sheet out of Property and Equipment and into Current Assets. As it
relates to the Statement of Operations depreciation is not charged
against assets held for sale, and as a consequence there will be a
significant reduction in the depreciation charge going forward.
* VaxGen's net loss of $7.5 million for the first quarter of 2008 reflects
$2.3 million of expenses associated with the terminated merger and also
reflects a non-cash charge of $1.6 million related to the increase in
value of the derivative liability associated with the Company's
convertible notes. The main reason for the increase in the derivative
liability is management's assessment that there is an increased
probability of a change of control event, as defined in the indenture
related to the notes.
* VaxGen's net cash used in operating activities of $4.9 million for the
first quarter of 2008 reflects approximately $1.8 million of cash
expended on costs related to the proposed Raven merger during the
VaxGen is a biopharmaceutical company based in South San Francisco, California. The company owns a state-of-the-art biopharmaceutical manufacturing facility with a 1,000-liter bioreactor that can be used to make cell culture or microbial biologic products. For more information, please visit the company's web site at http://www.vaxgen.com.
Note: This press release contains "forward-looking statements" within
the meaning of the federal securities laws, including statements regarding
the VaxGen's anticipated cash expenditures and its potential sale of assets
and assignment of lease. These statements are subject to risks and
|SOURCE VaxGen, Inc.|
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