LAFAYETTE, La., Nov. 01, 2017 (GLOBE NEWSWIRE) -- RedHawk Holdings Corp. (OTCQB:IDNG) (“RedHawk” or the “Company”) announced today a consolidated net loss of $407,681 on revenues of $1,670,488 (net revenues of $929,859) for the twelve month period ended June 30, 2017. The 2017 fiscal year end results include approximately $300,000 of non-recurring litigation and transactional costs. The June 30, 2017 fiscal year end results compare to a consolidated net loss of $1,267,960 on minimal revenues for the comparable twelve month period ended June 30, 2016. The net loss for the fiscal year ended June 30, 2016 included a non-recurring gain of $156,697 resulting from the expiration of certain indebtedness. Excluding this non-recurring gain, the Company reported a net loss of $1,424,657 for the twelve month period ended June 30, 2016.
The improved year-over-year performance resulted primarily from greater revenues from EcoGen Europe, Ltd. (“EcoGen”), RedHawk’s United Kingdom based provider of branded generic pharmaceuticals and “specials”. The Company said EcoGen is exiting the highly competitive market for “specials” and will instead focus exclusively on providing EcoGen’s branded generics to Clinical Commissioning Groups. While EcoGen will initially experience lower revenues with this new marketing emphasis, the Company said it believes this restructured marketing strategy will ultimately result in smaller customer discounts, improved profitability, significantly lower personnel and overhead costs, greater operating efficiencies and superior customer credit worthiness. Further, the Company said it believes the more streamlined operations resulting from this new marketing restructure will better position EcoGen’s branded generic operations for the completion, the acceptance and the ultimate efficient integration of RedHawk’s recently announced strategic acquisition of additional branded generic dossiers and licenses.
In August 2017, the Company announced the execution of a non-binding letter of intent (“EU License Acquisition”) for the purchase of a portfolio of European (“EU”) hospital licenses to be combined with EcoGen’s portfolio of dossiers and licenses. The licenses to be acquired cover injectable anti-infective generic pharmaceuticals. RedHawk said it believes the acquisition of these licenses could result in the ultimate issuance of market authorizations in up to twelve (12) EU markets for seven (7) core anti-infective products including piperacillin-tazobactam (PipTaz), meropenum, imipenem/cilastatin and the four (4) most widely used cephalosporins
In September 2017, RedHawk Pharma UK Ltd. (“RedHawk Pharma”), a wholly-owned subsidiary of RedHawk, announced it had agreed in principle to enter into definitive marketing and operational joint venture agreements (“Joint Venture Agreements”) with ICE Pharma Group (“IPG”), a United Kingdom-based generic pharmaceutical sales and compliance company. IPG is led by David K. Bilton, a pharmaceutical healthcare veteran with 35 years of experience in global strategic procurement, supply chain management and business development.
Also in September 2017, the Company announced that RedHawk Pharma had completed the previously announced share transfer agreement to increase its ownership position in EcoGen to 75%. The Company additionally announced that RedHawk Pharma had reached an agreement in principle (“Agreement”) with Scarlett Pharma Ltd. (“Scarlett”) and an affiliate, whereby Pharma would further increase its equity position in EcoGen. Under the terms of the Agreement, Scarlett and its affiliate will surrender to the Company 10 million shares of RedHawk’s outstanding common stock (the “RedHawk Shares”), transfer to RedHawk Pharma approximately $300,000 of EcoGen’s preferred stock plus other consideration in exchange for RedHawk Pharma assuming approximately $370,000 of obligations due to EcoGen. The RedHawk Shares were originally issued to Scarlett in connection with the Company’s March 2016 investment into EcoGen.
Upon completion of the Agreement, RedHawk Pharma will own approximately $635,000 of EcoGen’s preferred stock and 75% of EcoGen’s common stock with further ownership increases possible. When the EU License Acquisition is complete, RedHawk Pharma will own approximately 120 generic EU licensing assets. The Company expects the Agreement, the EU License Acquisition and the Joint Venture Agreements will be completed by the end of the fourth calendar quarter of 2017.
About RedHawk Holdings Corp.
RedHawk Holdings Corp., formerly Independence Energy Corp., is a diversified holding company which, through its subsidiaries, is engaged in sales and distribution of medical devices, sales of branded generic pharmaceutical drugs, commercial real estate investment and leasing, sales of point of entry full-body security systems, and specialized financial services. Through its medical products business unit, the Company sells WoundClot Surgical - Advanced Bleeding Control, the Sharps and Needle Destruction Device (SANDD™), and the Carotid Artery Digital Non-Contact Thermometer. Through our United Kingdom based subsidiary, we manufacture, and market branded generic pharmaceuticals. Our real estate leasing revenues are generated from various commercial properties under long-term lease. Additionally, RedHawk’s real estate investment unit holds limited liability company interest in a commercial restoration project in Hawaii. RedHawk Energy holds the exclusive U.S. manufacturing and distribution rights for the Centri Controlled Entry System, a unique, closed cabinet, nominal dose transmission full-body x-ray scanner.
Cautionary Statement Regarding Forward-Looking Statements
This release may contain forward-looking statements. Forward-looking statements are all statements other than statements of historical fact. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. The words “anticipate,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements.
Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties. In evaluating forward-looking statements, you should consider the various factors which may cause actual results to differ materially from any forward-looking statements including those listed in the “Risk Factors” section of our latest 10-K report. Further, the Company may make changes to its business plans that could or will affect its results. Investors are cautioned that the Company will undertake no obligation to update any forward-looking statements.
Thomas J. Concannon, CEO
G. Darcy Klug, Chairman and CFO
Source:RedHawk Holdings Corp.