For Essex Angel Capital, the transaction effectively replaces non-performing Wellness Indicators assets with $801,507 in HEPI common stock at $.31 per share. HEPI also funded $298,493 in cash to cover the logistical and legal expenses involved.
"Essex is very excited to complete the sale to HEPI," said Rick Galdi, Essex Chairman and CEO. "Our investment in metabolic wellness now has the opportunity to reach its full potential in the marketplace."
The Company formed WellMetris, LLC as a wholly-owned subsidiary of HEPI to function as a repository for the intellectual property and a funding vehicle that allows HEPI management to seek new capital without diluting HEPI shareholders. "The Company will look to raise equity capital while retaining a significant ownership stake. Outside investors will get a preferred return and maximized upside potential," states Philip Rice, Health Enhancement Chief Financial Officer.
As Mr. Dahl states, "Consider this unique premise: we now have a tool that measures oxidative stress, inflammation and autoimmune biomarkers, and we offer bioactive compounds that address oxidative stress, inflammation and autoimmune response. It's hand in glove. And it's applicable to both humans and animals."
As stated in the shareholder address, the Company has previous associations with the wellness technology. Health Enhancement President and CEO Andrew Dahl is one of two named inventors on the wellness panel patent application, and Health Enhancement CFO Phillip Rice served briefly as the Wellness Indicators, Inc. CFO before its managers moved the enterprise to Illinois where it subsequently ran aground. He is familiar with the business model and market potential.
The Company intends to begin manufacturing shortly after completion of its engineering review.
About Essex Angel Capital Inc.
Essex Angel Capital of Windsor, Ontario, is a publicly traded company engaged in the business of debt and equity investment in privately held early-stage companies. Essex is traded on the TSX Venture Exchange under the symbol "EXC."
About Health Enhancement Products, Inc.
Health Enhancement Products, Inc. (OTCBB: HEPI) is a Michigan-based health & wellness company engaged in the development of natural bioactive compounds for use as dietary supplements and food ingredients, as well as biologics for medicinal and pharmaceutical applications in humans and animals. The Company's scientific efforts are focused on the metabolic aspects of oxidation and inflammation, with a parallel program to validate and license products for healthy cholesterol balance.
Safe Harbor Statement
Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the timing of completion of a trial, actual future clinical trial results being different than the results the company has obtained to date, and the company's ability to secure funding. Such statements are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.
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