LAIYANG, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced that it plans to repurchase shares of its common stock.
The Company's board of directors authorized up to $2 million in open market share repurchases. This authorization does not have an expiration date, and share repurchases will be made from time to time as permitted by securities laws and subject to factors such as levels of cash generation from operations, working capital cash requirements, market conditions, and other factors. Plans to repurchase shares may be modified or discontinued at any time. As of September 30, 2008, the Company had approximately $61 million in cash and a portion of this cash will be used to pay for the share repurchases.
"While recognizing that share prices for most listed companies have recently declined, we believe that recent prices for Genesis' shares do not reflect the true value of our company," said Mr. Wubo Cao, Chief Executive Officer of Genesis. "Our board of directors authorized the share repurchases to show support for our company and confidence in its long term financial performance. We view these share repurchases as part of our ongoing commitment to increase shareholder value."
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a major pharmaceutical company in China producing tablets, capsules, and granules for both western and Chinese herbal-based medical drugs.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from anticipated or predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
For more information, please contact:
Genesis Pharmaceuticals Enterprises, Inc.
Ms. Elsa Sung, CFO
Tel: +1-954-727-8435
Email: genesispharm@gmail.com
Web: http://www.genesispharmaceuticals.com
CCG Investor Relations, Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com