berlin pharma announcement

the following announcement was found at Berlin Pharma's website - www.hcberlinpharma.de


Statement of HC Berlin Pharma AG regarding the application for insolvency proceedings

Berlin, June 16, 2010 HC Berlin Pharma AG has announced that the Board of Directors has submitted a request to open insolvency proceedings as of June 4, 2010. A corresponding Corporate News was published on June 15, 2010. In addition to the information given in the Corporate News, the Board of Directors has decided to provide shareholders of the company with detailed explanations regarding the company situation in the following separate statement.

HC Berlin Pharma AG was founded with the aim to open up new perspectives with the new and highly innovative malaria treatment ArTiMist - especially for children suffering from severe malaria above all for the African continent. Top politicians of African health departments supported the company and its great humanitarian project.

In the financing and realisation of the necessary clinical trials in various test phases the responsible Australian know-how partner had significant delays. These delays strongly constrained HC Berlin Pharma AG in its operational development. The contract of purchase for a building acquired in the meantime could not be completed due to missing operational business.

In this most tense situation the former CEO of HC Berlin Pharma AG, Mr. Ottmar W. Geiger, has resigned for health reasons with effect of early May 2010. By request of the entire Supervisory Board Dr. Roland K. Wildner assumed the function of CEO with effect of early May 2010.

The new CEO had to determine soon that the financial situation of the company was very tense. Despite intensive negotiations with banks and investors about the financing of the company a short term solution could not be achieved. Therefore, the CEO has applied for insolvency proceedings at the District Court of Berlin-Charlottenburg on June 4, 2010. The Board of Directors regrets this step for shareholders, employees, business partners and above all for the patients whose welfare the company was obliged to. The application was the only legally correct and possible step in the given situation. Time will tell if a new perspective for the company will arise from the possible insolvency proceedings.

IP-rights for the malaria treatment ArTiMist are still owned by HC Berlin Pharma AG.