Immtech Announces Investment in China
03 April 2009 - 1:58PM
PR Newswire (US)
NEW YORK, April 3 /PRNewswire-FirstCall/ -- Immtech
Pharmaceuticals, Inc. (NYSE Amex: IMM) announced today that it has
made an investment in Gold Avenue Ltd., a privately-held Hong Kong
company with interests in tin production in China. Gold Avenue is
invested in a joint venture to produce tin products from large tin
tailing sites located in Yunnan, China. Tailings are refuse or
dross that collects after ore is mined. Yunnan Tin Group ("YTG") is
a large producer of tin in the world. A subsidiary of YTG is the
joint venture partner in this investment. China is the world's
largest consumer and producer of tin. Tin is used in soldering
electronics, in finishing steel and other metals, and in chemicals
for multiple applications. The world's supply of tin has been in
decline, while demand for tin has been growing steadily. The price
of tin has been rising on trend for over a decade. In 2008,
contract prices on the London Metals Exchange ranged from
approximately $11,300 to $23,900 per metric tonne. Because residual
tin deposits in tailings are above ground and relatively easy to
recover, the cost of processing the retrievable tin reserve is
lower than mining, and the process significantly reduces
environmental risks. Eric L. Sorkin, Immtech's Chairman and Chief
Executive Officer, stated "This investment opportunity positions us
to create shareholder value by maximizing the strengths of our
business relationships and our understanding of product development
and distribution in China. Established price inelasticity makes tin
production an attractive opportunity. Immtech will continue to seek
alliances with well positioned companies in pharmaceutical and
other high growth sectors." Gold Avenue will invest initially in a
loan with an annual interest rate of 22%, convertible, at its
option anytime in the next five years, into shares in the joint
venture. About Immtech Pharmaceuticals, Inc. Immtech
Pharmaceuticals, Inc. and subsidiaries (a development stage
enterprise) is focused on global development in the healthcare
sector and opportunities in China. Immtech aims to apply its
expertise and assets in both new drug development and enhanced
healthcare-related services, including research and content
distribution services, for developed and developing countries. For
additional information, please visit the Company's website at
http://www.immtechpharma.com/. "Safe Harbor" Statement under the
Private Securities Reform Act of 1995: Statements in this press
release regarding Immtech Pharmaceuticals, Inc.'s business which
are not historical facts, are "forward-looking statements" that
involve risks and uncertainties. Actual results could differ
materially from these forward-looking statements. Factors that
could cause or contribute to such differences include, but are not
limited to, those discussed under the headings "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and "Risk Factors" in Immtech's annual report on Form
10-K for the year ended March 31, 2008 filed on June 18, 2008, and
in its other SEC filings and include, but are not limited to: (i)
conditions in the credit markets and the general economy; (ii)
Immtech's ability to obtain additional funds; (iii) Immtech's
ability to manage its remaining resources; (iv) Immtech's ability
to continue as a going concern; (v) Immtech's ability to retain key
personnel; (vi) the ability of Immtech's scientists and
collaborators to discover new compounds; (vii) the availability of
additional research grants; (viii) Immtech's ability to obtain
regulatory approval of its drug candidates; (ix) the success of
Immtech's clinical trials; (x) dependence upon and contractual
relationship with partners; (xi) Immtech's ability to protect its
intellectual property; and (xii) competition and alternative
technologies. In addition, Immtech does not undertake any
obligation, and specifically disclaims any obligation to publicly
update or revise forward-looking statements to reflect future
events, information or circumstances that arise after the date of
this release. DATASOURCE: Immtech Pharmaceuticals, Inc. CONTACT:
Bill Berry, Berry & Co. for Immtech Pharmaceuticals, Inc.,
+1-212-253-8881 Web Site: http://www.immtechpharma.com/
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