Rafarma Pharmaceuticals (OTC:RAFA) Announces Significant Cash Flow Improvement Through Restructuring

MOSCOW, April 10, 2014 /PRNewswire/ -- In response to shareholder inquiries, CEO Dave Anderson offers further comment on the improved financial position of Rafarma:

"Due to the overwhelming response to our recent news release regarding the VEBank loan restructuring the company would like to provide some additional details," said Anderson. A key element of the restructuring is a deferment creating significant cost savings--particularly when compounded. Another very significant element is an additional credit line of € 25,000,000 (EUR).  Both elements essentially create "new money" through the restructuring process.  The additional credit line will allow for accelerated production, licensing and deployment of the pharmaceutical products currently in development. It is expected that this additional money will allow the company to expand at a much more accelerated rate.

Mr. Anderson commented further: "This restructuring has come at the most opportune time in the development of the company. Even without a precise quantification of the projected cash flow savings, it is abundantly clear that it is considerable and the effect for investors could be significant.  The realization of these improved cash flows will undoubtedly help the company grow."

The original loan was due to begin payments in the beginning of April, 2014. The restructuring allows Rafarma to defer payments until 2018.  The additional line of credit offered to the company also creates additional working capital to accelerate growth initiatives. Management is confident that this substantial cash infusion will propel Rafarma into one of the largest and most respected pharmaceutical companies in the Russian Federation.

About Rafarma Pharmaceuticals, Inc.

Operating from a new 270,000 square-foot state-of-the-art manufacturing and distribution facility in Russia, Rafarma Pharmaceuticals produces generic antibiotics and specialty pharmaceuticals in addition to its own line of proprietary products that are approved by the Ministry of Health of Russian Federation. For the last three years, the Russian Government has been highly focused on bolstering the development of the nation's domestic pharmaceutical industry. Rafarma's mission is to work under the auspices of these aggressive federal initiatives to fast-track the modernization of Russia's pharmaceutical industry.

For more information on Rafarma Pharmaceuticals, visit: http://rafarma.com
For more information on VEBank, visit: http://www.veb.ru/en/  

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance.

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SOURCE Rafarma Pharmaceuticals, Inc.

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