Mesquite, NV, Sept. 6, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — United Health Products, Inc. (OTCPK: UEEC), (UHP) today announced that it has entered into a common stock purchase agreement to sell up to $10 million of stock to White Lion Capital, LLC ( White Lion), a California-based institutional investor. Under the terms of the purchase agreement, UHP will have the right, at its sole discretion, to sell shares to White Lion for a period of 36 months. Any common stock sold to White Lion will be at a purchase price derived from the prevailing market prices of the Company’s common stock at the time of each sale. The Company will control the timing and amount of all Common Stock sold to White Lion, and White Lion is obligated to make purchases at the quantities and prices in accordance with the Demand Purchase Agreement. UHP’s ability to make applications to purchase common stock is subject to customary limitations and conditions in the stock purchase agreement, including registration of the resale of stock in the name of White Lion under a registration statement to be filed with the SEC on Form S-3.
Separately, previously announced payments of approximately $1 million to be received by UHP from a former officer of the company have been amended such that the company received approximately $200,000 and 2,000,000 common shares are returned. to the society. These shares will be available for reissue under the above agreement with White Lion.
Proceeds from any sale of common stock to White Lion will be used for general corporate purposes, including establishing a manufacturing operation for the company’s HemoStyp hemostatic gauze product and completing all the remaining elements of the FDA premarket approval application, and to advance the development of powder and gel formats of the company’s patented neutralized oxidized regenerated cellulose (NORC) hemostatic agent.
With respect to the Company’s previously disclosed lawsuit relating to the audit of its 2017 financial statements, on August 31, 2022, the Company and the Defendant entered into a settlement agreement pursuant to which, among other provisions, UHP will receive a cash payment this month.
Brian Thom, President and CEO of UHP, said, “The resolution of this pending litigation, combined with the White Lion transaction and the settlement of payments from our former executive, will provide the company with more than $1 million in dollars in capital to advance its business plan without diluted shareholders.
With respect to the company’s FDA PMA application process, UHP continues to work with its intended manufacturing partner and regulatory consultant, Regulatory Compliance Associates, to establish production and complete all necessary documentation. UHP audits the production facility and its employee documentation and training processes, among other elements of Partner operations. The company’s manufacturing equipment will begin production, enabling the completion of the standard operating procedure and design control documentation, as well as the development of the design transfer process which will transfer detailed information on product design to the manufacturing partner. It is expected that completion of the audit process, establishment and inspection of gauze production, drafting of associated documentation and product testing to ensure compliance with previous product specifications will be completed within the 60 days. In the meantime, the company will continue to provide updates on the achievement of milestones in this process.
There is no guarantee that the company’s PMA application will be approved.
About United Health Products — United Health Products develops, manufactures and markets HemoStyp™, a patented hemostatic agent based on neutralized oxidized regenerated cellulose (NORC). HemoStyp is an all natural product designed to control bleeding. UHP currently offers a range of hemostatic products to the dental, veterinary and consumer markets, and is focused on gaining clearance to enter the human surgery market.
For more information on UHP, visit: www.unitedhealthproductsinc.com or contact the company at [email protected]thproductsinc.com
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes”, “expects”, “anticipates” or similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements.