Contact:
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| George Longo |
Carl Hymans |
| Vice President, CFO |
G.S. Schwartz & Co. |
| (215) 345-0919 |
(212) 725-4500 |
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carlh@schwartz.com |
The Quigley Corporation Announces Sale of Its Health and Wellness Segment
DOYLESTOWN, PA. - March 3, 2008 - The Quigley Corporation (Nasdaq: QGLY)
today announced that on February 29, 2008 it completed the sale of it wholly
owned subsidiary, Darius International Inc. ("Darius"), which markets
health and wellness products through its wholly owned subsidiary, Innerlight
Inc. to InnerLight Holdings, Inc., whose major shareholder is Mr. Kevin P.
Brogan, the current president of Darius.
The terms of the agreement include a cash purchase price of $1 million by
InnerLight Holdings, Inc. for the stock of Darius and its subsidiaries without
guarantees, warranties or indemnifications. The unaudited net book value of
Darius at December 31, 2007 and 2006 approximate $124,000 and $2.4 million,
respectively. Darius’ net sales for 2007 and 2006 approximate $11.2 million and
$15.3 million, respectively with a net loss for 2007 and 2006 approximating
$600,000 and $1.2 million, respectively.
Darius is a direct selling organization that constituted the Health and
Wellness segment of the Company, which was formed by The Quigley Corporation in
2000 to introduce new products to the marketplace through a network of
independent distributor representatives.
Over the last few years, net sales of this wholly owned subsidiary have
declined and profits have turned to losses for this Health and Wellness segment
reflecting the continued reduction in the number of active independent
distributor representatives, and the effects of ongoing litigation with the
sponsor of its product line.
As the Company continues to review its current structure, ownership of this
subsidiary, constituting the Health and Wellness segment, is no longer a
benefit for the Company since losses by this segment have been a drain for the
ongoing research and development costs associated with the ethical
pharmaceutical segment. Also, separating this segment will help streamline the
structure of the Company, which will focus on continuing operations in OTC
product marketing and pharmaceutical research.
About The Quigley Corporation
The Quigley Corporation (NASDAQ: QGLY, http://www.Quigleyco.com) is a
diversified natural health medical science company. Its Cold Remedy segment is
a leading marketer and manufacturer of the COLD-EEZE® family of lozenges,
gums and sugar free tablets clinically proven to cut the common cold nearly in
half. COLD-EEZE customers include leading national wholesalers and
distributors, as well as independent and chain food, drug and mass merchandise
stores and pharmacies. The Quigley Corporation has several wholly owned
subsidiaries; Quigley Manufacturing Inc. consists of two FDA approved
facilities to manufacture COLD-EEZE® lozenges as well as fulfill other
contract manufacturing opportunities. Quigley Pharma Inc.
(http://www.QuigleyPharma.com) conducts research in order to develop and
commercialize a pipeline of patented botanical and naturally derived potential
prescription drugs.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995 and involve known and unknown risk, uncertainties and other factors
that may cause the Company's actual performance or achievements to be
materially different from the results, performance or achievements expressed or
implied by the forward-looking statement. Factors that impact such
forward-looking statements include, among others, changes in worldwide general
economic conditions, changes in interest rates, government regulations, and
worldwide competition.
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