Message #1 From:
Jason Date: May 29, 2007 02:54:21 PM
GORX, GeoPharma Executes an Agreement to Acquire Dynamic Health Products
$100 Million in Combined Company Projected Revenues Annually
GeoPharma, Inc.
(Nasdaq: GORX Stocks Drug) (the 'Company') today announced the execution of an agreement
to acquire Dynamic Health Products, Inc. (OTC Bulletin Board: DYHP)
('Dynamic').
Under the agreement, which has been approved by both company's boards of
directors and is subject to the approval of the shareholders of GeoPharma and
Dynamic, GeoPharma will issue to Dynamic shareholders, 0.147 of one share of
GeoPharma common stock for every one share of Dynamic common stock. It is
estimated that GeoPharma will issue approximately 3.1 to 3.5 million shares of
GeoPharma common stock. If the merger is approved by the requisite number of
the outstanding shares of GeoPharma and Dynamic Health, GeoPharma expects
increased revenues, operating profits, and an enhanced distribution platform
supported by a highly experienced management team from both the companies
having extensive industry knowledge in marketing, developing, manufacturing
and distributing. GeoPharma will notify its shareholders of the date of the
shareholders meeting about the merger.
Dynamic, with over 3,000 SKUs and serving in excess of 5,000 customers, is
a U.S. cash-flow positive distribution company with 18% gross margins
presenting an attractive opportunity for widening the breadth of the overall
Company and its existing distribution platform. GeoPharma has the ability to
manufacture the majority of the products that Dynamic distributes. The
combination of GeoPharma and Dynamic will bring mass economies of scale as
gained from further vertical integration and improvements surrounding the
expanded distribution points across the U.S thus making this a well-
diversified company.
For the 12 months ended March 31, 2006, GeoPharma reported revenues of
approximately $49.7 million with reported revenues of approximately $45.6
million for the nine months ended December 31, 2006.
For the 12 months ended March 31, 2006, Dynamic reported revenues of
approximately $50.1 million with reported revenues of approximately $40.1
million for the nine months ended December 31, 2006.
Mihir Taneja, CEO of GeoPharma stated, 'The acquisition of Dynamic is in
line with this year's planned strategy of acquiring companies that either
complement or supplement our existing business lines. As we progress through
the stages of this acquisition, we plan to continue executing our acquisition
strategy thus driving industry consolidation and allowing us to leverage on
and benefit from the resulting economies of scale.'
For further details, please see the Company's Form 8-K to be filed on or
before May 18, 2007.
About GORX GeoPharma, Inc.
GeoPharma, Inc. is a rapidly growing pharmaceutical company specializing
in the manufacturing and distribution of over-the-counter, nutritional,
generic drug and functional food products. The company's growth strategy is to
capitalize on its manufacturing expertise to develop high margin generic or
novel drugs for niche markets with high barriers to entry. GeoPharma's
competitive advantage lies in its ability to circumvent or overcome the
challenges in these markets. For more about GeoPharma, Inc., go to our
websites at www.geopharmainc.com, www.hoodiadexL10.com and www.onlineihp.com .
