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Easton Pharmaceuticals Provides Company Update Including Hotel Acquisition in Toronto, BAYER Agreement and Casino Resort in Greece
TORONTO, ON, Dec. 12, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Easton Pharmaceuticals Inc. (OTC: EAPH) Provides Company update including Hotel Acquisition in Toronto, BAYER Distribution Agreement for Mexico, as well as the Casino and Hotel Resort acquisition in Greece.
As previously announced, Easton through the efforts of its CEO, Evan Karras and his personal involvement with a hotel / development property / project, located in the heart of downtown Toronto, Canada, is currently in the process of affecting changes to the recently signed agreement and various terms which has resulted in a delay in its anticipated closing. Easton entered into an agreement to acquire a property which has had an operating boutique hotel in it in the heart of downtown Toronto, whereby Easton has renegotiated the debt on the property. Easton and the current owners would restart hotel operations within 30 days of a closed deal with the mortgagee and its finance partners on the project. Revenues were conservatively in excess of $300,000 per month, but following the completion of several planned renovations and additions to the hotel, the revenues will more than double. The property was appraised in 2012 for $14,000,000 CDN and now has a value close to $17,000,000 CDN and is located on Bay Street, making it a prime development opportunity with many interested parties willing to be included following closing. Possible redevelopment includes luxury condominiums, condominium hotel, office and student residences. Architectural plans have already been prepared for a new development. Easton would be acquiring the property at a substantial discount providing extra value to the company and its shareholders. Although Easton is confident it will be able to ultimately close on the transaction, there are no guarantees all required approvals will be granted. Easton will provide further updates as they are made available and approved for release.
In other update news, earlier this year, Easton and BMV Medica SA de CV of Mexico closed on a sub distribution agreement with multi-national conglomerate BAYER and their subsidiary company, Bayer Consumer Care AG of Switzerland, to distribute its licensed Woman’s diagnostic product known as VS-Sense in Mexico. The agreement allowed for an upfront cash payment and a royalty payments to Easton / BMV for each product sold in Mexico, which in turn has provided BAYER with full control of the launch date and all sales, marketing and operational aspects for this product. Easton can state that an anticipated launch date could be in the first quarter of 2019, but this date could again change as the ultimate decision rests with BAYER and various factors.
Easton, through a JV partner, has been working on the acquisition of an operating casino and hotel resort in Greece, which generates revenues in excess of 60,000,000 Euros per year. The acquisition involved securing an agreement with the bank and current owners. Easton has been continuing its due diligence throughout this time and prior to concluding this transaction as there are many variables associated with Easton’s participation. The process has taken substantially more time than initially anticipated, due to new information made known to Easton during its due diligence. Based on new information received, Easton will not be proceeding with this acquisition at this time, but may entertain working with the new owners in the future. Further updates will be provided as they are available and approved for release.
Easton has entered into a dispute with BMV Medica SA de CV of Mexico as well as BMV’s partner, Ackerman Pharma of Mexico and recently made the decision to commence an action against them for breach of contract and misrepresentation. Over the past 4 years, Easton has advanced in excess of $1,000,000 USD towards licensing and other costs in Mexico, which neither BMV or Ackerman has delivered on as per signed agreements. The Agreements call for payments to be remitted to Easton through sales of sub-distribution agreements executed with Gedeon Richter Plc of Hungary and Windsor Pharmaceuticals, but despite repeated requests by Easton, both BMV and Ackerman have failed to fulfil their agreed upon obligations or make proper disclosures. Easton’s attorneys believe its best course of action is to first launch these actions in the United States and Canada, as the principles of both of those companies are Canadian citizens. Easton will provide more detailed updates as they are made available and hopes to resolve the disputes quickly. These disputes are apart from the Bayer agreement which is not affected.
In other news, in early June of this year, soil dumping operations commenced on its Georgina property, jointly owned between Easton and 1124123 Ontario Inc., which resulted in the generation of sales and on-going contracts. Shortly after the commencement of these operations, the township of Georgina brought forward various court actions in their efforts to stop the dumping of soil on the property. The property is currently zoned for aggregate and related uses. In early August, a local court ordered the temporary halt of all operations on the property regardless of its nature. Easton’s JV Partner 1124123 Ontario Inc. subsequently submitted a challenge through its attorneys and hopes to have a new court date shortly in an attempt to overturn and reverse what is believed to be an improper halt of all operations. Easton’s investment is protected with a mortgage as well as an agreement on a 50% ownership interest on a property that was independently valuated at $8 million CDN. Easton is now working towards bringing on much larger partners and using the property to finance other businesses mentioned in this press release. Easton will provide a detailed update as it becomes available and approved.
Easton’s previously announced Cobourg, Ontario, Canada development project is soon nearing final approvals and financing and will shortly be able to disclose details.
Woman’s Products Overview:
VS-Sense - VagiSense: is the current brand name of the BV (Bacterial Vaginosis) patented diagnostic test. VagiSense (VS-Sense) is the same product Bayer Pharmaceuticals had licensed and launched in late 2015 in Europe under its brand, Canestest. Prestige Distribution is currently selling in the US under its brand, Monistat, with multi-million dollars in sales and growing.
Gynofit: European-Union approved natural treatment for Bacterial Vaginosis (BV), potentially eliminating the use of antibiotics in women with BV and promoting optimal vaginal health. BV is expected to affect the vast majority of women at some point in their lives.
AmnioSense: patented amniotic fluid leak test is a unique Point-of-Care diagnostic panty liner for women in late-stage pregnancy able to distinguish between urine and amniotic fluid (breaking of water).
Easton has changed its accountant and its new accountant is currently preparing its quarterly financial statements and disclosure requirements which are expected to be filed shortly.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries. The Company previously developed and owned an FDA-approved wound-healing medical drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton, together with BMV Medica S.A., own the exclusive distribution rights in Mexico and Latin America for two patented women's diagnostic products and a novel natural treatment for Bacterial Vaginosis resulting in sub-distribution agreements with Gedeon Richter and BAYER. In addition, a generic cancer drugs line is being developed for sale in Mexico. As part of its strategic growth plan, the Company will be entering new lucrative market segments globally, including Gaming, Real Estate and Hospitality, among others.
For More Information On Easton and Affiliated and Partner Company's Visit:
This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when certain words or phrases such as "hope", "positive", "anticipate," "pleased," "plan," "confident that," "believe," "expect," "possible" or "intent to" and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company's financial reports and filings.
CONTACT: CONTACT INFORMATION Evan Karras Tel: +1(416) 619-0291 Tel: +1(347) 284-0192 Email: email@example.com