|[October 14, 2004]
Isonics Announces Warrant Exercise; Proceeds to Fund Further Implementation of Company's Strategic Plan
GOLDEN, Colo. --(Business Wire)-- Oct. 14, 2004 -- Isonics Corporation (NASDAQ:ISON), committed to the development of next-generation technology for the homeland security and semiconductor markets, announced today that it has received in excess of $600,000 in proceeds from the exercise of existing common stock purchase warrants. The announcement was made by James E. Alexander, Chairman and CEO of Isonics.
As of 4:00 pm MST yesterday, October 13, warrants issued in relation to previous equity financings were exercised, providing over $600,000 in proceeds to the Company. Based on inquiries and expressed intentions from a number of warrant holders, the Company expects, but cannot guarantee, that it will receive substantial additional warrant exercise proceeds over the next several days. As noted in the Company's 10-KSB filing for the fiscal period ended April 30, 2004, as of July 14, 2004, the Company had outstanding options and common stock warrants for the purchase of up to 9,950,958 shares of common stock at an average exercise price of $1.37 per share. A detailed description of the warrants is set forth in that filing. The proceeds generated from the exercise of these warrants are in addition to the $3.3 million in proceeds the Company announced on October 6, 2004.
"Due to the positive response we have received as a result of the announcement of our newly formed Isonics Homeland Security and Defense Corp., a number of warrant holders have exercised warrants providing additional capital which will be deployed to further implement the Company's previously announced strategic plan," stated Mr. Alexander. "It is management's opinion that this additional capital will support the expansion of the Company's activities in the new homeland security division, as well as in the Company's semiconductor and health sciences divisions. We are pleased by this vote of confidence expressed by the investment community."
Mr. Alexander continued, "The Company will release further updates in the interest of providing complete and timely information to the market."
Isonics Homeland Security and Defense Corporation will include the Company's IUT Detection Technologies (IUTDT) subsidiary, plus all other homeland security related technologies and products Isonics has now, or may acquire in the future.
Isonics has previously announced its development of a family neutron-based products through IUTDT for detecting explosives, chemical and biological weapons. Isonics recently announced positive results in initial technical reviews and testing of the first of these neutron-based products: the NeutroTest(TM) explosive detection device. The Company expects to publicly demonstrate a prototype of the product in the coming weeks.
About Isonics Corporation
Isonics Corporation has three business divisions: (1) Isonics Semiconductor, (2) Isonics Life Sciences, and (3) Homeland Security and Defense. Isonics is a world leader in isotopically engineered materials and through its semiconductor division produces isotopically pure silicon-28 chemicals and wafers for the semiconductor industry. Through advances in nanotechnology, the Company is also focused on research and development opportunities for further, value-added product and application development. Isonics' Life Sciences division markets and sells stable isotopes for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and radioisotopes and stable isotopes, such as oxygen-18 for positron emission tomography (PET) imaging. Stable isotopes can be thought of as ultra pure materials. This high degree of purification provides enhanced properties as compared to natural materials. Our efforts in the Homeland Security segment are nascent at the present time as we proceed to develop further our neutron-based detection technologies. Additional information may be obtained at the Company's Web site at http://www.isonics.com.
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB for the year ended April 30, 2004, and its quarterly report on Form 10-QSB for the three months ended July 31, 2004, both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.
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