Javelin Technologies Board discusses new proposals

Javelin Technologies Ltd has announced that the Board of Directors of the Company at its meeting held on October 20, 2006, inter alia, has decided as under:

1. The commercialization of Decapeptide molecule for Vitiligo/Leucoderma did not successfully materialize after BioEurope as additional data and trials are said to be required. Since the Company is presently unable to pursue such trials in Europe, it has been decided by the Board to relieve Dr A Ramaiah as requested by him and to annul all the agreements with Dr A Ramaiah, in view of the long gestation and huge costs involved.

2. The Board discussed at length on the new initiatives:

The Company in its AGM has sought and obtained the approval of the shareholders for the "other objects" in the Memorandum of Association to be shifted to "Main objects" for focusing attention on new initiatives relating to "infrastructure development" and "real estate construction" and "Hardware / Software". A brief summary of the initiatives as below:

a. Housing project in Sri Lanka for defence personnel valued at IRs 250 Cr/280 Cr - positive communication received from Defence ministry, Srilanka for 5000 houses.

b. Textile park development in Viskahapatnam with Brandix of Srilanka who has received AP Govt clearence. Size of work estimated at Irs 500 crs - discussions on with Brandix.

c. MOU with NEB Infrastructure for execution of Hard ware / software support, design and development of Stations for Metro rail project in Colombo, Sri Lanka.

d. Manufacturing of Active Pharmaceutical Ingredients with a proposed joint venture initiative for manufacture of Rabiprazole, and Gemifloxacin. The project has been finalized with Ayyapa Drugs which has been takenover by the JV partner and civil works are in progress. The Company to hold more than 50% in the JV.

e. An Retirement Resort coupled with Health tourism at Turakapally / Toopran near Hyderabad is being finalized. The project is for 1000 homes in 3 phases spread over 20 acres valued at Rs 25 crs.

- The new initiatives by the new Directors were well received and accepted by the Board. The various opportunities available for funding these initiatives were discussed. The Board decided to appoint suitable Banks / Financial institutions / Merchant bankers / Investment Bankers for suggesting solutions for mobilization of funds for the said initiatives.

- The board has further resolved that each project needs to be monitored by one director who will be responsible to inform the board on the progress.

- The board has further resolved that an appropriate opportunity be extended to directors / investors for bringing in additional resources for the new projects. Such avenues to include preferential offer of shares, issue of share warrants or any other financial instruments as permitted by the Articles of Association.

Source : Equity Bulls

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