EXHIBIT 99.1
HEALTHSPORT AND INNOZEN EXTEND MERGER AGREEMENT
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COMPANIES COMMITTED TO CLOSING MERGER AND
LAUNCHING NEW PRODUCTS UNDER THE ENLYTEN(TM) BRAND
AMHERST, N.Y. and WOODLAND HILLS, CA (March 20, 2007) -- HEALTHSPORT, INC.
(OTCBB: HSPO), a developer and marketer of branded nutritional supplements in a
one-of-a-kind edible film strip delivery system, announced today an agreement to
extend the previously announced Agreement and Plan of Merger dated January 31,
2007 with INNOZEN(R), INC. (http://www.innozen.com). Following the completion of
the merger, HealthSport will become a fully integrated developer, manufacturer
and marketer of unique and proprietary branded and private label nutritional
supplements and over-the-counter drug products.
Under the terms of the extension, HealthSport will issue up to 18,250,000 shares
of its common stock in exchange for 100% of the issued and outstanding shares of
InnoZen. The closing, which is subject to completion of final due diligence,
financing and usual and customary closing requirements, is expected to occur on
or before April 30, 2007.
HealthSport President, Daniel Kelly and InnoZen President, Rob Davidson, jointly
commented, "We are working hard to complete the due diligence, the financing and
the other conditions to closing the merger and are extremely enthused about the
potential combination of HealthSport and InnoZen. Both companies are committed
to closing this merger as soon as possible and to begin launching several
exciting new products under the Enlyten(TM) brand. The management teams at
HealthSport and InnoZen are looking forward to working together and are
confident the combination will create substantial value for our respective
shareholders."
HealthSport is the developer and marketer of the Enlyten SportStrips(TM)
(http://enlytenstrips.com/). Enlyten SportStrips replace the electrolytes our
bodies lose while exercising through buccal (cheek to gum) absorption. This mode
of absorption is very different than all electrolyte delivery predecessors.
Gastric absorption is bypassed and the necessary electrolytes are directly
absorbed into our bodies. Additionally, Enlyten SportStrips will help to avoid
the over-hydration that often accompanies the excessive consumption of sports
drinks.
InnoZen is the preeminent formulator, developer and manufacturer of edible thin
film strips that deliver drug actives and was the first company to deliver a
drug active ingredient in a thin film strip when it completed the development of
Chloraseptic(R) Sore Throat Relief Strips in June 2003. With Chloraseptic Relief
Strips, InnoZen established a new process which prevented irritants and
incorporated additional compounds to make the strips more suitable for various
drug delivery needs. Relying on its expertise in the development of edible film
strips that deliver drug actives, InnoZen moved forward with its proprietary
technology to develop two new thin film strip products for cough. InnoZen
launched its two new film strip products under its own Suppress(R) brand
(http://www.suppress.com) in September 2004.
Using InnoZen's in-house research and development and manufacturing
capabilities, HealthSport will have the ability to rapidly formulate and develop
new edible film products and other novel delivery systems for nutritional
supplements and OTC drugs. Over the coming months and years, HealthSport
anticipates a steady stream of new branded and private label products. The
implementation of HealthSport's innovative and creative sales and marketing
strategies for each product line will play an integral role in creating brand
awareness for all of HealthSport's products.
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the following website: http://www.Directstocknews.com/HSPO.
ABOUT HEALTHSPORT, INC.
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HealthSport (http://www.healthsportinc.com/) is focused on the development and
marketing of branded nutritional supplements in a one-of-a-kind edible film
strip delivery system. The Company's Enlyten Sports Strips(TM), a thin film
electrolyte strip, has recently undergone and completed pre-launch trials. The
trials, conducted in conjunction with physicians and scientists at Duke
University Sports Medicine & The Michael J. Krzyzewski Human Performance
Laboratory ("K Lab"), involved athletes from various disciplines at the
intercollegiate level. Preliminary findings of these studies suggest that the
ENLYTEN electrolyte strip delivers meaningful amounts of electrolytes to the
human body in a safe, fast and effective manner.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: STATEMENTS IN THIS NEWS
RELEASE ABOUT ANTICIPATED OR EXPECTED FUTURE REVENUE OR GROWTH OR EXPRESSIONS OF
FUTURE GOALS OR OBJECTIVES, INCLUDING STATEMENTS REGARDING WHETHER CURRENT PLANS
TO GROW AND STRENGTHEN THE COMPANY'S EXISTING BUSINESS, ARE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE ARE BASED UPON INFORMATION
AVAILABLE TO THE COMPANY ON THE DATE OF THIS RELEASE. ANY FORWARD-LOOKING
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, INCLUDING THE RISK THAT THE COMPANY
WILL BE UNABLE TO GROW OR STRENGTHEN ITS BUSINESS DUE TO A LACK OF CAPITAL OR AN
INABILITY TO IDENTIFY ACQUISITION CANDIDATES AND THAT THE COMPANY MAY NOT
REALIZE ANTICIPATED COST SAVINGS OR REVENUE GROWTH OPPORTUNITIES ASSOCIATED WITH
ANY ACQUISITIONS, PLANNED OR OTHERWISE. ADDITIONALLY, FORWARD-LOOKING STATEMENTS
CONCERNING THE PERFORMANCE OF THE COMPANY'S BUSINESS ARE BASED ON CURRENT MARKET
CONDITIONS AND RISKS, WHICH MAY CHANGE AS THE RESULT OF CERTAIN REGULATORY,
COMPETITIVE OR ECONOMIC EVENTS, AS WELL AS THOSE RISKS AND UNCERTAINTIES
DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION,
WHICH COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THE EVENTS
OR RESULTS DESCRIBED IN THE FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF
NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. READERS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS.
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Investor CONTACT:
Bill Schlueter
LaunchPad PR
310-397-4321
Bill@launchpadpr.com
Source: HealthSport, Inc.