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Spherix Incorporated Message Board

  • financesajeed financesajeed Mar 10, 2013 11:36 AM Flag

    SPEX: Major Restructuring

    Spherix Incorporated (SPEX) has been operating under major restructuring programs which touch shareholding pattern, changes in top management, divesting subsidiary and what not. The competent authority of PEX considers that the above initiatives will be effective to recover the company from its slow financial performance since long time. In the meantime, to strengthen its capital structure further equity based the company has raised $2.6 million fund through private placement (as the less levered the capital structure, the less financial expenditure to be paid by the company and the more levered the capital structure, the more financial cost to be paid by the company). After getting new capital through placement, the company is feeling more comfort since the company can utilize the fund to some selective areas to achieve quick result and to relieve its financial difficulties. We know, SPEX is a renowned scientific research company having long exposure as well as presence in the market which needs huge working capital to support running business as well as any expansionary programs. The company has been developing biopharmaceutical products and also has been providing technical and regulatory consulting services to food, consumer products and pharmaceuticals companies which also need funding support. Moreover, in its restructuring program SPEX has sold all shares of Spherix Consulting, Inc, a subsidiary company of Spherix Incorporated (SPEX).According to press release of SPEX, “pending completion of its review of its strategic alternatives, Spherix Incorporated will continue to pursue development and commercialization of innovative drug, medical, and food technologies, including food and nutritional technologies and supplements”. Divesting a subsidiary is not an easy decision; it is quite a challenging decision of SPEX. The future time will say how SPEX will be benefitted from this; primarily I think the company wants to have a concentrated decision making procedu

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