Exhibit
99.2
Oxis
Requests Debt Holders End Foreclosure Proceedings
Sale of
assets as planned would result in full repayment,
enhance
shareholder value, and fund future operations
Foster City, CA. – June 16, 2008—Oxis
International Inc. (OXIS.OB) today said that the company’s four debenture
holders have been notified that the sale of its majority interest in BioCheck
Inc. and its diagnostic businesses is proceeding in a timely manner with strong
interest from multiple potential buyers, and warned that the recently commenced
foreclosure efforts disclosed in Oxis’ 8-K filing of June 13, 2008 related to
their collateral will both jeopardize repayment efforts and harm
shareholder value.
“It would
be completely irresponsible to attempt foreclosure proceedings when a
prospective sale is on track that will clearly benefit our shareholders, debt
holders, employees, suppliers and customers,” said Marvin S. Hausman, M.D.,
Chairman and Chief Executive. “We are hopeful that our debt holders will
recognize this fact, and allow us to move forward toward finalizing an asset
sale.”
As
reported in its recent 8-K, Oxis currently has four letters of intent from
interested parties. Proceeds from the asset sales will be used to
repay debenture holders in full, as well as to generate funds to implement a
growth strategy based on its neutraceutical and therapeutic assets. Last Fall,
Oxis retained Burrill & Co., a San Francisco investment bank to assist in
the sale of its diagnostic businesses and informed the debenture
holders of its plan to repay them with the sale proceeds.
In
a separate letter sent today, Dr. Hausman requested that debenture holders Alpha
Capital Anstalt, Bristol Investment Fund , Ltd, Cranshire Capital, L.P., and
Whalehaven Capital Fund Limited end their foreclosure proceedings.
Dr.
Hausman noted that Oxis, with the assistance of Burrill, is better equipped and
motivated to sell the assets itself to maximize value as compared to
a post-foreclosure sale attempt by the debenture holders, which could
reduce the asset values as well as prohibit the company from arranging financing
required to continue operations. Should this happen, Dr. Hausman noted, it would
be harmful to shareholder value. (A copy of Dr. Hausman’s letter will be filed
shortly with the Securities and Exchange Commission and will be available at
www.oxis.com)
Dr. Hausman
added that Oxis is open to discussions related to restructuring of the
debentures, but said that negotiating with each fund individually would be
onerous and unnecessarily time consuming given the deadline set by the
foreclosure actions. He requested that one of the four debenture holders act as
a coordinator for negotiations, while recognizing that each fund has to make its
own decision on any restructuring.
Dr.
Hausman said that should the debenture holders continue to move forward with
foreclosure proceedings; Oxis will consider all legal options necessary to
preserve and enhance shareholder value.
“We are
continuing our discussions with the debenture holders regarding a restructuring,
and are hopeful all parties can reach a satisfactory and timely resolution,” Dr.
Hausman said.
About
OXIS and BioCheck:
OXIS
International, Inc. develops technologies and products to research, diagnose,
treat and prevent diseases of oxidative stress associated with damage from free
radical and reactive oxygen species. The company holds the rights to
four therapeutic classes of compounds in the area of oxidative
stress, and has focused commercialization programs in clinical cardiovascular
markers, including MPO (myeloperoxidase) and GPx (glutathionione peroxidase), as
well as a highly potent antioxidant, Ergothioneine, that may be sold
over-the-counter (OTC) as a neutraceutcal supplement. OXIS has acquired a 53%
interest in and has the option to purchase the remaining 47% of
BioCheck.
BioCheck,
Inc. is a leading provider of high quality enzyme immunoassay research services
and products including immunoassay kits for cardiac and tumor markers,
infectious diseases, thyroid function, steroids, and fertility hormones. The
company operates a 15,000 square-foot, U.S. Food and Drug Administration (FDA)
certified cGMP, and ISO device-manufacturing facility in Foster City,
California.
More
information about OXIS, BioCheck and their products, services as well as current
SEC filings may be obtained by visiting http://www.oxis.com
and http://www.biocheckinc.com.
The
statements in this press release that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including,
without limitation, statements regarding our expectations, objectives,
anticipations, plans, hopes, beliefs, intentions or strategies regarding the
future. Factors that could cause actual results to differ materially from the
forward-looking statements include risks and uncertainties indicated in the
company's filings with the Securities and Exchange Commission. It is important
to note that actual outcomes could differ materially from those in such
forward-looking statements.
Contact:
Sitrick
& Co.
Jim
Bates
310-788-2850
Source:
OXIS International, Inc.