|
FOR IMMEDIATE
RELEASE
|
|
|
CONTACT:
|
|
|
George
J. Longo
|
Carl
Hymans
|
|
Vice
President, CFO
|
G.S.
Schwartz & Co.
|
|
(215)
345-0919
|
(212)
725-4500
|
|
carlh@schwartz.com
|
The
Quigley Corporation Announces Sale of Its Health and Wellness
Segment
DOYLESTOWN, PA. – March 3, 2008 – The
Quigley Corporation (Nasdaq: QGLY) today announced that on February 29,
2008 it completed the sale of it wholly owned subsidiary, Darius International
Inc. (“Darius”), which markets health and wellness products through its wholly
owned subsidiary, Innerlight Inc. to InnerLight Holdings, Inc., whose major
shareholder is Mr. Kevin P. Brogan, the current president of
Darius.
The terms
of the agreement include a cash purchase price of $1 million by InnerLight
Holdings, Inc. for the stock of Darius and its subsidiaries without guarantees,
warranties or indemnifications. The unaudited net book value of Darius at
December 31, 2007 and 2006 approximate $124,000 and $2.4 million, respectively.
Darius’ net sales for 2007 and 2006 approximate $11.2 million and $15.3 million,
respectively with a net loss for 2007 and 2006 approximating $600,000 and $1.2
million, respectively.
Darius is
a direct selling organization that constituted the Health and Wellness segment
of the Company, which was formed by The Quigley Corporation in 2000 to introduce
new products to the marketplace through a network of independent distributor
representatives.
Over the
last few years, net sales of this wholly owned subsidiary have declined and
profits have turned to losses for this Health and Wellness segment reflecting
the continued reduction in the number of active independent distributor
representatives, and the effects of ongoing litigation with the sponsor of its
product line.
As the
Company continues to review its current structure, ownership of this subsidiary,
constituting the Health and Wellness segment, is no longer a benefit for the
Company since losses by this segment have been a drain for the ongoing research
and development costs associated with the ethical pharmaceutical segment. Also,
separating this segment will help streamline the structure of the Company, which
will focus on continuing operations in OTC product marketing and pharmaceutical
research.
About The Quigley
Corporation
The
Quigley Corporation (NASDAQ: QGLY, http://www.Quigleyco.com)
is a diversified natural health medical science company. Its
Cold Remedy segment is a leading marketer and manufacturer of the COLD-EEZE®
family of lozenges, gums and sugar free tablets clinically proven to cut the
common cold nearly in half. COLD-EEZE customers include leading
national wholesalers and distributors, as well as independent and chain food,
drug and mass merchandise stores and pharmacies. The Quigley
Corporation has several wholly owned subsidiaries; Quigley Manufacturing Inc.
consists of two FDA approved facilities to manufacture COLD- EEZE® lozenges as
well as fulfill other contract manufacturing opportunities. Quigley Pharma Inc.
(http://www.QuigleyPharma.com)
conducts research in order to develop and commercialize a pipeline of patented
botanical and naturally derived potential prescription drugs.
Forward-Looking
Statements
Certain
statements in this press release are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risk, uncertainties and other factors that may cause the
Company's actual performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the forward-looking
statement. Factors that impact such forward-looking statements include, among
others, changes in worldwide general economic conditions, changes in interest
rates, government regulations, and worldwide competition.