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Hemispherx Enters into Sale/Leaseback Agreement for NJ Development and Production FacilityORLANDO, Fla., Jan. 17, 2018 (GLOBE NEWSWIRE) -- Hemispherx Biopharma, Inc. (NYSE American:HEB), focused on pharmaceutical research, today said it has entered into a sale and leaseback agreement for the property it owns at 783 Jersey Lane, New Brunswick, NJ., which houses the company’s development and production facilities. Under the terms of the agreement, Hemispherx is selling the real estate for $4.0 million, and simultaneously entering into a 10-year lease with options to extend the lease for another 10-years. The company will retain the right to repurchase the property at any time during the initial lease. The facility’s lease payments under the agreement are offset by about 50% by the contemporaneous termination of the very expensive lease on its Philadelphia offices. The combination of these transactions raises cash for operations with only a modest increase in the burn rate. “This is a timely transaction for Hemispherx on favorable terms. It allows us to increase our production capabilities for Ampligen® to meet existing demands and projected higher requirements during the balance of this year and beyond,” said Thomas K. Equels, Chief Executive Officer of the Company. Hemispherx is in the final stages of producing commercial lots which are needed to launch Ampligen® in Argentina, where it is the first and only drug ever approved anywhere in the world as a therapy for Myalgic Encephalomyelitis, commonly known as Chronic Fatigue Syndrome or E/CFS. Increased production is important to allow clinical activities in both ME/CFS and oncology to move forward in the U.S. Furthermore, Ampligen production is key to Early Access Programs in Europe and planned programs in Canada. “Hemispherx commitment to success is unwavering and converting wholly owned real estate into cash for operations and drug production without a dramatic increase in the burn rate is just a part of our overall financial plan,” states Equels, “We must remember that Ampligen stands as a potentially powerful mediator for dire unmet medical needs. We cannot serve those in need if we do not take the important financial steps necessary to manufacture Ampligen in sufficient quantities to allow it to gain regulatory approvals in major markets.” About Hemispherx Biopharma Cautionary Statement Contact |