WITTEN, Germany--(BUSINESS WIRE)--According to preliminary unaudited figures, Sangui BioTech International Inc. achieved revenues from royalty income and product sales in the amount of approximately $ 27,000 in the first half of its fiscal year 2016 (Dec. 31,.2015). The development of royalty income can be described as positive. Due to increased sales of the wound treatment product Granulox the resulting royalties increased in the second quarter by 28% as compared to the first quarter. This development reflects the successful efforts of the licensee, SastoMed GmbH, to obtain reimbursement commitments from relevant health insurance companies for costs caused by the prescription of Granulox, particularly in Europe.
The adopted cost-cutting - and liquidity-protection program has been implemented successfully in the second quarter of the fiscal year. After complete implementation costs in a significant amount will be saved per annum. Accordingly, the breakeven point will be reached considerably earlier.
Shareholders' equity of SastoMed GmbH was strengthened at the end of December 2015 by a capital increase by the majority shareholders. Due to the fact that Sangui BioTech GmbH has not exerted its subscription rights, the participation rate of Sangui BioTech GmbH of originally 25% was significantly reduced by the capital increase. Sangui BioTech GmbH sold its stake in SastoMed GmbH to the co-shareholder at the end of 2015. The persisting licensing agreement between Sangui BioTech GmbH and SastoMed GmbH is not affected by this sale.
This above-mentioned first capital increase contributes to further expand the sales and marketing activities of SastoMed GmbH for its wound treatment product Granulox at home - and abroad. This measure will have positive effects on the Sangui BioTech GmbH prospective accruing royalties.
Sangui BioTech International, Inc. ("SGBI") is a holding company the shares of which are being traded on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies (OTCQB: SGBI). Companies are current in their reporting and undergo an annual verification and management certification process. Sangui shares also trade on the OTC markets of Berlin and Hamburg-Hannover stock exchanges (symbol: SBH). Its purpose is to provide financing and access to the capital markets for the enterprises of the Sangui group. SanguiBioTech GmbH is a ninety percent subsidiary of Sangui BioTech International, Inc.
Some of the statements contained in this news release discuss future expectations, contain projections of results of operation or financial condition or state other “forward-looking” information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.