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October
12, 2001 |
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Volume
IV, Issue 88 |
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Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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Astralis/Hercules Development
(OTC BB: HDVG) Announces Negotiations With European Pharmaceutical Co.
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News today from Astralis confirms
our original suspicions that Astralis would be seeking major value added
partners for both capital and technology expertise to help move the company
forward.
The company announced it has entered
into advanced negotiations with a European based Pharmaceutical company
for a strategic investment. According to the press release "If successful
in completing the transaction, Astralis anticipates a significant infusion
of capital into the Company".
If you missed our original profile
on this company, now would be a good time to review it. Click
Here to be taken directly to the original profile. For individual investors
in the microcap arena, this company is one of the most exciting situations
we have ever seen, and we believe all risk oriented investors should own
some stock in this company.
We have already covered most of the
risk factors associated with investing in Hercules Development at
this time. They include the following:
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The merger has not been completed. The
purchase of shares of Hercules is not Astralis yet. According to both parties,
the transaction should close by the end of October. If it becomes derailed
you stand to lose a substantial portion of your investment.
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The editors of the OTC Journal do
not have the technical expertise to evaluate the merits of this revolutionary
new drug. We have not been to Caracas, Venezuela to interview treated patients
or the Venezuelan FDA which has already approved the drug.
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It is anticipated the FDA approval process
could take five to six years.
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As it stands today, the company does
not have the anticipated required capital to take this drug through the
FDA Approval Process.
An investment of both capital and technology
from a major pharmaceutical company would go a long ways towards mitigating
the risks associated with this company.
Pharmaceutical companies have the
expertise to evaluate the technology. If a major pharmaceutical company
were to make a significant investment, this would confirm the upside potential
of this drug and mitigate risks associated with both the lack of capital
and the need for technological help.
We advised investors to start with
25% to 50% of the risk capital they planned to set aside for this exciting
company. Today's news release helps mitigate some of the risk associated
with this investment, and therefore it would be appropriate to add to your
current position on this news. However, the closing of a major financing
with a pharmaceutical company would trigger our belief that you should
be 100% invested.
Today the stock closed $.38 below
our original entry price of $3.66. If you invested on the first day, today's
price provides the opportunity to lower your average cost. If you don't
own this stock yet, you should invest if you have any risk capital available.
This company has exciting upside potential, and every risk oriented investor
should participate. We expect the stock will trade at much higher levels
if and when a final deal is announced with a Pharmaceutical company but
there are no guarantees.
Here is the complete text of the
press release for your review:
Friday October 12, 4:03 pm Eastern
Time
Press Release
SOURCE: Hercules Development Group/Astralis
Hercules in Negotiations With
European-Based Pharmaceutical Company For Strategic Investment
Pharmaceutical company specializing in drug
delivery technologies to provide essential services in the development,
testing and commercialization of Psoraxine
FLORHAM PARK, N.J.--(BUSINESS WIRE)--Oct.
12, 2001-- Hercules Development Group (OTC BB: HDVG - news) announced today
that it is currently in negotiations with a European-based pharmaceutical
company for the purposes of strategic investment in Astralis, the company
with which it has executed a definitive merger agreement. If successful
in completing the transaction, Astralis anticipates a significant infusion
of capital into the Company. Astralis also contemplates engaging the strategic
investor, a leader in the dermatological field in drug delivery technologies,
for a number of services essential to the development, testing and commercialization
of Psoraxine.
Although there can be no assurances
that the transaction will be consummated, Astralis CEO Mike Ajnsztajn stated:
``We are presently in advanced negotiations, and we are optimistic that
a deal will be finalized in the near future.''
Psoraxine, the first drug to be developed
by Astralis, has brought about clinical remission of Psoriasis during clinical
trials conducted in Venezuela. The Company has treated 3,000 patients with
Psoraxine to-date. Of these, 638 experienced complete remission and 1,000
have experienced between 70% and 90% remission. The primary end point was
the reduction of the Psoriasis Area and Severity Index (PASI) before and
after treatment with Psoraxine. Overall, 96% of patients have responded
positively to Psoraxine, with few adverse effects, although these results
were not independently verified.
Psoriasis affects 7 million people
in the United States alone, and conservative estimates indicate that up
to 3% of the world population also suffer from this condition-as many as
180 million people. Psoriasis results due to an overproduction of skin
by blood cells associated with the immune system. These blood cells become
confused and act as though the skin was damaged, manufacturing skin cells
at a much faster rate than is required by undamaged skin. This overproduction
of skin can cause everything from itchy rash-like patches to painful pustules
and massive inflammation. Most current treatments are sub-optimal and some
systematic treatments can cause serious side effects. In fact, of the 7
million people living with Psoriasis in the US today, only 1.6 million
choose treatment.
Astralis is the developer of PSORAXINE,
a drug that has brought about a clinical remission of the skin condition
Psoriasis in patient trials. The Company has applied for patent protection
for composition of matter, method of use, DNA sequence of peptides, and
the new gene sequence that fuels Psoraxine. The company is in the process
of submitting the IND for FDA approval to commence US clinical trials.
--------------------------------------------------------------------------------
Contact:
for Hercules
Development Group/Astralis
The Investor
Relations Group
Peter Waal,
800/689-2966
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companies are chosen on the basis of certain financial analysis and other
pertinent criteria with a view toward maximizing the upside potential
for investors while minimizing the downside risk, whenever possible.
Moreover, as detailed below, this publication accepts compensation from
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