The Auxer Group, Inc. Announces the Sale of Auxer UK, Ltd.
23 June 1998
The Auxer Group, Inc. Announces the Sale of Auxer UK, Ltd.
WAYNE, N.J.--June 22, 1998--The Auxer Group, Inc. (O-T-C Electronic bulletin board:AXGI) announced that the company has sold Auxer UK, Ltd., the group's wholly owned software subsidiary based in the United Kingdom. While details of the sale have not been released, terms of the agreement provide for Auxer to recoup its investment.Auxer decided to divest of the software group in February after the sudden death of the software group's primary financier in late January of this year. "It became obvious upon this passing that his financing was no longer in place. As a result, the decision was made to identify a buyer located in the UK with the financial wherewithal to be able to manage and advance the vision, which Auxer had financed throughout 1997 and 1998," said Eugene Chiaramonte, Jr., Chairman of The Auxer Group, Inc. These unexpected developments forced Auxer to redirect capital originally budgeted for the automotive group. Subsequently, the automotive group delayed some of the marketing, advertising, and automotive acquisition programs scheduled for this summer.
"The company while overcoming this, has continued advancing our agenda to include development of Harvey Westbury's new complete line of car care products. The new line is scheduled for debut at the APAA show in Las Vegas later this fall and the company expects to formally announce the line next quarter. We are excited about the fact that management was able to successfully complete the development and marketing campaign for the new product line as well as successfully advance discussions with several major automotive buying groups for the Fall 98 season. In spite of the fact that the company's stock price appears to have suffered as a result of the unforeseen problems surrounding the software group's financing, the company has put this behind and I believe Auxer can now focus on our core business, the automotive products industry. Our automotive group continues to meet their goals and timelines and management remains firmly on-track with their sales and marketing targets for the Fall of 1998", said Mr. Chiaramonte. In addition, Auxer is currently taking steps to become a reporting company in order to remain in compliance when forthcoming NASD OTC Bulletin Board rule changes that may be going into effect in the near future.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, completion of acquisitions, continued acceptance of the acquired companies' products, competition, new products and technological changes, intellectual property rights and other risks.