Generex $52.5 million cash position sufficient for next 12 months

By Lisa Kerner

Charlotte, N.C., Oct. 16 - Generex Biotechnology Corp. believes its anticipated cash position is sufficient to meet the company's working capital needs for the next 12 months, according to a 10-K filed with the Securities and Exchange Commission.

At July 31, the company had cash and short-term investments of $52.5 million, an increase of about $52 million from the balance as of the end of the prior fiscal year. The increase resulted from proceeds received from warrant and investment right exercises, as well as other sales of common stock during the fiscal year.

The company has financed its development-stage activities mostly through private placements of Generex common stock and securities convertible into its common stock.

Looking ahead, the Generex said it may require additional funds.

While Generex has been successful in raising needed equity capital in the past, very low cash balances in 2005 and unforeseen problems with its clinical program could interfere with the company's ability to raise funds.

Generex had 6% secured convertible debentures outstanding in the principal amount of $769,231, with a term of 15 months, payable in 13 equal monthly installments.

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