Gamma Pharmaceuticals, Jugular form new joint venture company

Mar 11 2010

Gamma Pharmaceuticals, Inc. (Pink Sheets:GMPM) ("Gamma" or the "Company") announced the formation of a joint venture company with Jugular, Inc. ("Jugular"), replacing the brand licensing agreement in place between Gamma and Jugular since 2007. The new company, Gamma Jugular, LLC ("Gamma Jugular") is closely integrated with Gamma's existing corporate infrastructure and distribution channels, and currently has three product lines and six SKUs with plans for expansion. Under the terms of the joint venture, Gamma will consolidate Gamma Jugular's performance into Gamma's financials. 

Peter Cunningham, Gamma's Chief Executive Officer, commented on the initiative, "Forming Gamma Jugular is important to the Company in two significant ways.   First, we improve corporate control by integrating Gamma's infrastructure with Jugular, Inc. on our exclusive product range. Second, we eliminated a substantial debt obligation payable to Jugular per our Licensing Agreement from 2007. We believe this will provide management with additional flexibility in the future." Mr. Cunningham continued, "We have worked for two years developing our Jugular product line of energy products and high performance vitamins and nutriceuticals. The leading edge products we have developed achieved an 85% 'willingness to purchase' after the first try.  Today, we are embarking on a national and global expansion, details of which we will release in the weeks ahead. We expect great things from the Gamma Jugular, 'Go for the Jugular' campaign."

On March 3^rd 2010, Gamma announced that it has entered into a multi-year agreement with one of North America's leading wholesale distribution organizations to distribute the full line of Gamma products, which at full distribution equates to an annualized value of approximately $48.0 million. The Company will utilize a portion of the distribution arrangement to accelerate the rollout of the Gamma Jugular product range.