| To: leigh aulper who started this subject | 10/9/2001 10:55:02 AM | | From: leigh aulper | | | | Huntingdon and LSR Announce Transaction
HUNTINGDON, England--(BUSINESS WIRE)--Oct. 9, 2001--Huntingdon Life Sciences Group plc (``Huntingdon'' or the ``Company'') (NASDAQ:HTDLY - news) and Life Sciences Research Inc. (``LSR'') announced today that LSR will make an offer to acquire all of the issued and to be issued share capital (including ADSs) of Huntingdon.
LSR is a newly formed American company that has been established solely for the purpose of making this offer.
Under the proposal, LSR will make an exchange offer of one share of LSR voting common stock for every 50 Huntingdon ordinary shares (LSE:HTD) and one share of LSR voting common stock for every 2 Huntingdon ADRs (NASDAQ:HTDLY - news). It is expected that following the offer becoming, or being declared, unconditional in all respects, the LSR voting common stock will be quoted on the NASDAQ Over the Counter Bulletin Board in the United States (``OTCBB''). An application will also be made for cancellation of the listing of the Company's ordinary shares on the London Stock Exchange, and the Huntingdon ADRs will cease to be quoted on the OTCBB. Thereafter the Bank of New York will no longer serve as depositary agent for the ADRs.
If the offer is fully accepted, the existing holders of Huntingdon's securities will hold approximately 85.4 per cent of LSR's issued common stock. The balance of the LSR issued common stock will be held by the original investors in LSR, who will invest approximately $1.5 million for those shares prior to the Offer becoming, or being declared, unconditional in all respects. The present Huntingdon directors will constitute the LSR board and the existing LSR director will resign subject to the offer becoming, or being declared, unconditional in all respects.
Andrew Baker, Huntingdon's Executive Chairman said: ``For some while we have been considering how best to re-domicile ownership of the Company to the US as part of our longer term strategic plan. The US securities markets offer both a more developed market for our industry and greater shareholder privacy, which, as everyone is aware, has been a serious issue for our shareholders. This transaction should facilitate a more open and liquid trading platform for our investors reflecting, amongst other things, the familiarity in the US market with the many CRO companies listed there. LSR has been created by investors who share our view of the exciting prospects for Huntingdon and our industry, and our Board expects to unanimously recommend the offer to our shareholders.''
Brian Cass, Huntingdon's Managing Director added: ``This transaction offers us the best of both worlds, with the benefits of an American stock trading facility, and the continuance of our existing UK and US laboratory operations. Huntingdon's reputation for scientific excellence, built over the last 50 years, is clearly one of our most valued assets and has ensured the strong support we've enjoyed from our clients, which has been particularly evident this year. LSR's recognition of this, and the vital role our people have played, has ensured management's commitment and enthusiasm for this important next step in Huntingdon's development. We are excited and convinced that this is an excellent opportunity for our shareholders, clients, and employees alike.''
The offer will not be made, directly or indirectly, in or into Canada, Australia or Japan. The availability of the offer to persons who are not resident in the United Kingdom or the United States may be affected by the laws of the relevant jurisdictions. Persons who are not resident in the United Kingdom or the United States should inform themselves about and observe any applicable requirements.
This announcement, which is the responsibility of the respective directors of Life Sciences Research, Inc and Huntingdon Life Sciences Group plc, has been approved for the purposes of section 57 of the Financial Services Act 1986. This announcement does not constitute an offer of any securities for sale or an offer or an invitation to purchase any securities. SECURITYHOLDERS SHOULD READ THE OFFER DOCUMENT CAREFULLY BEFORE MAKING A DECISION CONCERNING THE OFFER.
The attention of member firms of the National Association of Securities Dealers, Inc (``NASD'') is drawn to certain UK dealing disclosure requirements following this announcement. This announcement commences an offer period under the City Code on Takeovers and Mergers (``Code'') which is published and administered by the Panel on Takeovers and Mergers (``Panel''). An offer period is deemed to commence at the time when an announcement is made of a proposed or possible offer, with or without terms.
The above disclosure requirements are set out in Rule 8 of the Code. In particular, Rule 8.3 requires public disclosure of dealings during an offer period by persons who own or control, or who would as a result of any transaction own or control, 1 per cent. or more of any class of relevant securities of the offeror or offeree company. Relevant securities includes all instruments exchangeable into Huntingdon ordinary shares or into shares of LSR voting common stock. This requirement will apply until the end of the Offer Period. |
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| To: leigh aulper who started this subject | 10/9/2001 10:55:03 AM | | From: leigh aulper | | | | Huntingdon and LSR Announce Transaction
HUNTINGDON, England--(BUSINESS WIRE)--Oct. 9, 2001--Huntingdon Life Sciences Group plc (``Huntingdon'' or the ``Company'') (NASDAQ:HTDLY - news) and Life Sciences Research Inc. (``LSR'') announced today that LSR will make an offer to acquire all of the issued and to be issued share capital (including ADSs) of Huntingdon.
LSR is a newly formed American company that has been established solely for the purpose of making this offer.
Under the proposal, LSR will make an exchange offer of one share of LSR voting common stock for every 50 Huntingdon ordinary shares (LSE:HTD) and one share of LSR voting common stock for every 2 Huntingdon ADRs (NASDAQ:HTDLY - news). It is expected that following the offer becoming, or being declared, unconditional in all respects, the LSR voting common stock will be quoted on the NASDAQ Over the Counter Bulletin Board in the United States (``OTCBB''). An application will also be made for cancellation of the listing of the Company's ordinary shares on the London Stock Exchange, and the Huntingdon ADRs will cease to be quoted on the OTCBB. Thereafter the Bank of New York will no longer serve as depositary agent for the ADRs.
If the offer is fully accepted, the existing holders of Huntingdon's securities will hold approximately 85.4 per cent of LSR's issued common stock. The balance of the LSR issued common stock will be held by the original investors in LSR, who will invest approximately $1.5 million for those shares prior to the Offer becoming, or being declared, unconditional in all respects. The present Huntingdon directors will constitute the LSR board and the existing LSR director will resign subject to the offer becoming, or being declared, unconditional in all respects.
Andrew Baker, Huntingdon's Executive Chairman said: ``For some while we have been considering how best to re-domicile ownership of the Company to the US as part of our longer term strategic plan. The US securities markets offer both a more developed market for our industry and greater shareholder privacy, which, as everyone is aware, has been a serious issue for our shareholders. This transaction should facilitate a more open and liquid trading platform for our investors reflecting, amongst other things, the familiarity in the US market with the many CRO companies listed there. LSR has been created by investors who share our view of the exciting prospects for Huntingdon and our industry, and our Board expects to unanimously recommend the offer to our shareholders.''
Brian Cass, Huntingdon's Managing Director added: ``This transaction offers us the best of both worlds, with the benefits of an American stock trading facility, and the continuance of our existing UK and US laboratory operations. Huntingdon's reputation for scientific excellence, built over the last 50 years, is clearly one of our most valued assets and has ensured the strong support we've enjoyed from our clients, which has been particularly evident this year. LSR's recognition of this, and the vital role our people have played, has ensured management's commitment and enthusiasm for this important next step in Huntingdon's development. We are excited and convinced that this is an excellent opportunity for our shareholders, clients, and employees alike.''
The offer will not be made, directly or indirectly, in or into Canada, Australia or Japan. The availability of the offer to persons who are not resident in the United Kingdom or the United States may be affected by the laws of the relevant jurisdictions. Persons who are not resident in the United Kingdom or the United States should inform themselves about and observe any applicable requirements.
This announcement, which is the responsibility of the respective directors of Life Sciences Research, Inc and Huntingdon Life Sciences Group plc, has been approved for the purposes of section 57 of the Financial Services Act 1986. This announcement does not constitute an offer of any securities for sale or an offer or an invitation to purchase any securities. SECURITYHOLDERS SHOULD READ THE OFFER DOCUMENT CAREFULLY BEFORE MAKING A DECISION CONCERNING THE OFFER.
The attention of member firms of the National Association of Securities Dealers, Inc (``NASD'') is drawn to certain UK dealing disclosure requirements following this announcement. This announcement commences an offer period under the City Code on Takeovers and Mergers (``Code'') which is published and administered by the Panel on Takeovers and Mergers (``Panel''). An offer period is deemed to commence at the time when an announcement is made of a proposed or possible offer, with or without terms.
The above disclosure requirements are set out in Rule 8 of the Code. In particular, Rule 8.3 requires public disclosure of dealings during an offer period by persons who own or control, or who would as a result of any transaction own or control, 1 per cent. or more of any class of relevant securities of the offeror or offeree company. Relevant securities includes all instruments exchangeable into Huntingdon ordinary shares or into shares of LSR voting common stock. This requirement will apply until the end of the Offer Period. |
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| To: leigh aulper who started this subject | 2/12/2002 5:31:52 PM | | From: trenzich | | | | LSR To Sell At Least Four Million Shares of Voting Common Stock in Private Placement Transaction
BUSINESS WIRE - February 12, 2002 17:19
PRINCETON, N.J., Feb 12, 2002 (BUSINESS WIRE) -- Life Sciences Research, Inc. ("LSR") announced today that it has received commitments to purchase at least 4,000,000 shares of its voting common stock in a private placement transaction at a sale price of $1.50 per share. LSR expects the transaction to close within approximately two weeks. The proceeds from the sale will be used to reduce debt, to pay transaction costs and for general corporate purposes. The voting common stock to be issued in the private placement is only being offered to a limited number of investors, all of whom were identified and received offering materials prior to the date of this release.
The voting common stock to be issued will not upon issuance be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Life Sciences Research, Inc. is one of the world's leading Contract Research Organizations providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. LSR operates research facilities in the United Kingdom and the United States. |
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| To: leigh aulper who started this subject | 3/28/2002 5:50:21 PM | | From: Paul Lee | | | | LSR Announces 2001 Results
BUSINESS WIRE - March 28, 2002 17:26
EAST MILLSTONE, N.J., Mar 28, 2002 (BUSINESS WIRE) -- Life Sciences Research, Inc. ("LSR") announced today that net revenues for the year ended December 31, 2001 were $99.2 million, 3% above the revenues for the year ended December 31, 2000 of $96.0 million, continuing the improvement shown last year.
The underlying increase, after adjusting for the impact of the movement in exchange rates, was nearly 9%. The Company reported a net loss for the year ended December 31, 2001 of $8.6 million compared with a net loss of $9.8 million the previous year. Loss per share for the year ended December 31, 2001 was $1.46 compared with $1.68 in the year ended December 31, 2000, including Other Operating Expenses associated with refinancing and the LSR Exchange Offer of $3.3 million and $1.8 million in 2001 and 2000 respectively. Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") were $6.8 million for full year 2001, exclusive of the items discussed above, or 6.9% of sales, compared to $9.0 million, or 9.4% of sales, for the prior year.
For the quarter ended December 31, 2001, revenues were $26.8 million, compared to $22.9 million during the same period last year. Excluding the Other Operating Expenses referred to above, net loss for the quarter was $1.0 million, compared to $0.8 million in the prior year period. On the same basis, EBITDA was $3.0 million, or 11.2% of sales, compared to $0.3 million, or 1.3% of sales in the same period last year.
"This is an exciting period for Life Sciences Research", said Andrew Baker, LSR's Chairman and CEO, " as we inaugurate the next chapter in our 50 year corporate history as a new, American domiciled public company. With our shares now on a US stock exchange, and the completion of our recently announced private placement to strengthen our capital position, we believe we are well positioned to benefit all of our stakeholders."
Brian Cass, LSR's President and Managing Director, said "The support we've enjoyed from our clients is both gratifying and encouraging. Record orders for 2001, up 9% from the prior year, have helped us grow our revenues 18.7% from the first to the last quarter. Our booked-on backlog sits at approximately $73 million, an historic level and one which reflects the confidence our clients have in our company."
He added "2001 was an important and rewarding year and I should like to pay tribute to all our stakeholders and advisors, but particularly to our staff, who have steadfastly maintained a focus on quality work and striven for the highest levels of customer service; we believe this will be further rewarded as we continue to build customer support, order levels and a return to historic levels of success."
Life Sciences Research, Inc. is one of the world's leading Contract Research Organizations providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products. The Company's services are designed to meet the regulatory requirements of governments around the world. LSR operates research facilities in the United States (the Princeton Research Centre, New Jersey) and the United Kingdom (Huntingdon and Eye, England). |
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| To: leigh aulper who started this subject | 7/31/2002 9:37:06 AM | | From: Paul Lee | | | | LSR Announces Second Quarter Results
BUSINESS WIRE - July 31, 2002 09:30
EAST MILLSTONE, N.J., Jul 31, 2002 (BUSINESS WIRE) -- Life Sciences Research, Inc. (OTCBB:LSRI) announced today that revenues for the quarter ended June 30, 2002 were $28.6 million, 19% above the revenues for same period in the prior year of $24.0 million.
The Company reported net income for the quarter ended June 30, 2002 of $2.9 million, compared with a net loss of $1.7 million for the quarter ended June 30, 2001. Net income per share for the quarter ended June 30, 2002 was $0.24 compared with a net loss of $0.28 in the quarter ended June 30, 2001. Net income included non-cash exchange gains on the conversion of the Company's dollar denominated liabilities including bonds into UK sterling of $3.3 million compared to exchange losses in the same period last year of $0.3 million. Excluding that non-cash currency gain, Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") was $3.2 million for the second quarter, or 11.2% of revenues, compared with $1.6 million, or 6.7% of revenues, for the same period in the prior year.
Revenues for the six months ended June 30, 2002 at $54.7 million were 17% above the revenues for the same period in the prior year of $46.7 million. The Company reported a net loss for the six months ended June 30, 2002 of $0.4 million compared with a net loss of $6.0 million in the six months ended June 30, 2001. The loss per share for the six months ended June 30, 2002 was $0.04 compared with a loss of $1.02 in the six months ended June 30, 2001. EBITDA was $3.6 million for the first half of the year, or 6.6% of revenues, compared with $1.3 million, or 2.8% of revenues, for the same period in the prior year.
Brian Cass, LSR's President and Managing Director said "We established a positive momentum during 2001 and this is being sustained as we progress through 2002. Our business has shown excellent improvement on all of our key measurements this quarter, with meaningful growth in revenues, margins, and new orders. Positive cash flow resulted from strong operating results and improvements in working capital. We're enjoying a historic level of backlog, and a market for pre-clinical CRO services that is very buoyant at the moment and looks set to continue."
Andrew Baker, LSR's Chairman and CEO, said "We're proud of the excellent operating results LSR achieved in the quarter, an important step towards the results that have historically been achieved by this Company and others in our industry. We are encouraged by the support we're seeing for both our staff and Company. The record orders and backlog that we've seen in each of the past two quarters are the highest compliment we can be paid by our clients, and we are committed to continue working diligently to retain their confidence and respect. We're also pleased to see growing liquidity in our stock on the US trading markets, further convincing us of the valuable benefits of our new structure."
Life Sciences Research, Inc. is one of the world's leading Contract Research Organizations providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products. The Company's services are designed to meet the regulatory requirements of governments around the world. LSR operates research facilities in the United States (the Princeton Research Center, New Jersey) and the United Kingdom (Huntingdon and Eye, England). |
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| To: leigh aulper who started this subject | 11/1/2002 2:50:12 PM | | From: Paul Lee | | | | LSR Announces Third Quarter Results
Friday November 1, 1:52 pm ET
EAST MILLSTONE, N.J.--(BUSINESS WIRE)--Nov. 1, 2002--Life Sciences Research, Inc. (OTCBB:LSRI - News) announced today that revenues for the quarter ended September 30, 2002 were $30.0 million, 16.5% above the revenues for the same period in the prior year of $25.7 million.
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The Company reported net income for the quarter ended September 30, 2002 of $1.5 million, compared with $0.1 million for the quarter ended September 30, 2001. Net income per common share for the quarter ended September 30, 2002 was $0.13 compared with $0.09 in the quarter ended September 30, 2001. Net income included non-cash foreign exchange transaction gains on the conversion of the Company's dollar denominated bonds into UK pound sterling of $1.6 million compared to $2.2 million in the same period last year. Excluding the foreign exchange transaction gains, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") was $3.7 million for the third quarter, or 12.3% of revenues, compared with $1.6 million, or 6.4% of revenues, for the same period in the prior year.
Revenues for the nine months ended September 30, 2002 were $84.7 million, which were 16.9% above the revenues for the same period in the prior year of $72.4 million. The Company reported net income for the nine months ended September 30, 2002 of $1.1 million compared with a net loss of $6.0 million in the nine months ended September 30, 2001. Net income per common share for the nine months ended September 30, 2002 was $0.11 compared with a loss of $1.02 in the nine months ended September 30, 2001. Net income included non-cash foreign exchange transactions gains on the conversion of the Company's dollar denominated bonds into UK pound sterling of $3.9 million compared to a $0.8 million foreign exchange transaction loss in the same period last year. Excluding the foreign exchange transaction gain/loss, EBITDA was $7.3 million for the first nine months of the year, or 8.6% of revenues, compared with $3.0 million, or 4.1% of revenues, for the same period in the prior year.
Brian Cass, LSR's President and Managing Director said "Our third quarter operating results reflect continued and meaningful progress on each of our key measures. Top line growth in both the US and the UK has been very solid, both sequentially and compared with last year. Another excellent quarter for new orders means we are now some 20% ahead on a year to date basis resulting in a record backlog of $85 million."
Mr. Cass continued, "We remain focused on operating profits and cash generation, both of which are showing solid progress. Operating profit is the highest level in over five years, and this has driven positive cash flow from operations for the second quarter in a row. Furthermore, we've made significant progress in reducing working capital levels during 2002. These two things together have helped us achieve an increase in our cash position and a decrease in our debt since the beginning of the year."
Andrew Baker, LSR's Chairman and CEO, added "This is an exciting time for LSR, not just because of the improving operating results that Brian and his team are achieving, but also because of the encouraging prospects for our whole industry sector. Our excellent order growth this year is indicative of the strong market demand for drug discovery services which is also reflected in the interest shown by investors in the Contract Research sector. Now that our stock is trading exclusively on the US market we look forward to benefiting from this very positive environment of support and understanding."
Life Sciences Research, Inc. is a global Contract Research Organization providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR brings leading technology and capability to support its clients in non-clinical safety testing of new compounds in early stage development and assessment. The purpose of this work is to identify risks to humans, animals or the environment resulting from the use or manufacture of a wide range of chemicals which are essential components of LSR's clients' products. The Company's services are designed to meet the regulatory requirements of governments around the world. LSR operates research facilities in the United States (the Princeton Research Center, New Jersey) and the United Kingdom (Huntingdon and Eye, England). |
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| From: leigh aulper | 1/31/2005 9:19:31 AM | | | | | | Animal Rights Group Aims at Enemy's Allies
Harassment Campaign Targets Suppliers, Customers of Product Testing Company
By Glenn Frankel
Washington Post Foreign Service
Monday, January 31, 2005; Page A16
HUNTINGDON, England -- Greg Avery was a small-time activist on the fringes of the animal rights movement here when, one day in 1999, he trailed a truck full of cats from a breeding farm to its destination: the gates of Huntingdon Life Sciences, Britain's largest animal research laboratory.
Suddenly, he recalls, it came to him: Why focus on one little cat farm when you could declare war on a major publicly traded company that experiments on thousands of animals each year?
Over the next five years, the Stop Huntingdon Animal Cruelty campaign, known as SHAC, brought Huntingdon to the edge of bankruptcy and forced the company to cease trading on the London Stock Exchange and move its corporate headquarters to New Jersey. Activists with clubs assaulted two of its senior executives, while dozens of other employees reported harassment ranging from damage to their property to threatening phone calls and false allegations of pedophilia.
The campaign spread to the United States, where a federal grand jury in Newark last May indicted SHAC USA and seven individuals on charges that included violation of the Animal Enterprise Terrorism Act. The trial is scheduled for June.
The campaign against Huntingdon -- a company with 1,400 employees and $120 million in annual sales -- is the longest, most aggressive and most ambitious that the militant wing of the animal rights movement has ever conducted. It marks an escalation in tactics and a new internationalization of the movement, which to a large extent was born and bred in Britain and still follows the lead of British activists.
Proponents of animal testing argue that without it, most of the drugs and modern therapies developed to combat cancer and a host of other diseases would not exist. But animal rights advocates contend that testing is inhumane and largely unreliable. For activists such as Avery, testing is nothing less than mass murder.
The key to strangling Huntingdon, says Avery, has been to focus on harassing its suppliers and customers -- ranging from the bank that lent it money to the caterer who supplied its cafeteria food. "We decided to hit companies who don't need Huntingdon but Huntingdon needs them," he said. "These are banks with tens of millions of pounds -- why risk their reputation for some crappy little company? If they wouldn't make a moral decision, we would force them to make a financial one."
Brian Cass, Huntingdon's managing director, said his company has survived the onslaught and is back on its feet. But Avery, who insists that he and his supporters operate within the law, contends the campaign is well on its way toward driving Huntingdon out of business within the next two years.
Avery, 36, has waged his campaign with just a handful of paid organizers, a few dozen dedicated volunteers and a support system of several thousand sympathizers utilizing a network of cell phones and Web sites. "It's very much a David and Goliath thing," he declared.
But in this war of attrition, it's hard sometimes to tell David from Goliath.
An Obvious Target
On a crisp but sunny autumn Wednesday, Gavin Medd-Hall, 40, an unemployed computer technician, led a band of five protesters on a journey south of London. Over the course of the day, they visited three companies that supply services to Huntingdon or carry out animal research for it on contract. At each stop they unfurled a 10-foot-long vinyl banner with a color photo of a terrified cat strapped down for experimentation.
Outside the local offices of Fujisawa Healthcare Inc., a Japanese drug manufacturer, the protesters pulled out loudspeakers from a backpack and began their harangue. "Five hundred animals are dying every single day in a painful medieval torture chamber," intoned one of them. "You have blood dripping from your hands, Fujisawa, because of your disgusting lust for money and profit."
Huntingdon, which conducts experiments on up to 75,000 rats, mice, guinea pigs, cats, dogs and monkeys every year, is an obvious target. Two hidden-camera investigations in the 1990s uncovered deliberate abuse of animals by staff members in England and the United States. Company officials say that the incidents were isolated and that strong safeguards are in now in place to ensure they don't recur.
Huntingdon operates two labs in England and another in New Jersey that test new drugs, shampoos, food products and industrial chemicals on animals. The company produces toxicology, metabolic and other studies for pharmaceutical companies around the world that by law must conduct such studies before receiving product approval.
The company acknowledges that it kills thousands of animals during its testing, but insists that conditions under which the tests proceed are as humane as possible. An hour-long guided tour of portions of two buildings at the main site here revealed nothing to contradict those claims. Forty beagle puppies in one room were kept in kennel-style conditions. The floors were clean, food and water plentiful and the people in charge expressed affection and concern for the dogs.
Avery said he and each of SHAC's half-dozen full-time employees are paid less than $100 a week. He buys his clothes at a charity shop in London, and he and his family live in a house lent to the movement by a wealthy benefactor. Hundreds of other people donate money or time to the cause, and therein lies its real strength, according to Avery. "They call us extremists," he said. "But 7 million people in this country have cats, and 6 million have dogs. They all identify with animals in the labs."
In the early days of the campaign, Avery was arrested and jailed for threatening the life of a Huntingdon official. SHAC's Web site published the names and home addresses of company employees and urged supporters to harass them. A half-dozen cars of company workers were firebombed. Many of the attacks were carried out in the name of the Animal Liberation Front, an underground movement that has operated sporadically in Britain since the mid-1970s.
Three men in ski masks confronted Cass, the managing director, when he pulled into his driveway one evening in February 2001. They battered him in the head and ribs with pickax handles until a neighbor chased them off. An activist named David Blenkinsop, 38, is serving a three-year sentence for the assault on Cass as well as five years for his part in a firebombing campaign.
Avery insisted that he opposes violence and illegal activity, although he has been convicted four times for activities related to Huntingdon. He, his wife, Natasha Taylor, and his former wife, Heather James, served six months each in 2002 for conspiracy to incite criminal damage after the SHAC Web site published the names and addresses of the Huntingdon employees.
SHAC continues to publish the names, addresses and phone numbers of companies that do business with Huntingdon, although it posts a disclaimer that it "does not encourage illegal actions of any kind against these companies."
After SHAC published the name and address of BOC, a British supplier of gas to Huntingdon, a female employee's property was damaged. A message signed "ALF" was posted on Bite-Back, a Florida-based Web site: "If you don't think it is torture put yourself in that lab for one day. You would not be able to stomach it you sick freaks."
Last month, BOC announced it was severing ties with Huntingdon. A company statement called the move "a commercial decision."
Economic Pressure
A 10-foot-high fence topped by razor wire surrounds the headquarters of Huntingdon Life Sciences, 70 miles north of London, and the front gate is protected by a brick compound.
Cass recalled the time five years ago when demonstrators massed outside the complex every day, shouting abuse and taking down the license plate numbers of employees and suppliers. But the key moment, he said, came when SHAC targeted the company's financial base.
Huntingdon's fund manager, Phillips & Drew, sold its 11 percent stake in February 2000 after its London offices were evacuated following a bomb threat and the disclosure on the SHAC Web site of home phone numbers of the fund's directors.
The Royal Bank of Scotland dropped out a year later, calling in its $35 million loan. And when no other British bank would agree to assume the loan, the Bank of England stepped in to avert bankruptcy. The accounting firm Deloitte and Touche resigned as the company's auditor in February 2003. The company's insurance broker also quit, forcing the government to provide emergency coverage.
Huntingdon eventually found new financing with Stephens Inc., an Arkansas investment bank, and reincorporated in the United States as Life Sciences Research Inc. The American company's share price, which fell to less than $1 in 2002, has risen to more than $11, and it recently reported its 15th consecutive quarter of revenue growth.
"This company is in a lot stronger position today than it was in 2000," said Cass, who remains grimly defiant. On the bulletin board of his office is a photo of him in a SHAC sweat shirt that reads: "Spongers, Hypocrites Anarchists Cowards."
At first, he said, government officials were slow to react. But this past year, police arrested 202 people on charges related to animal rights activism. The government has enacted new laws to establish security zones around businesses and homes targeted by activists, to allow for the prosecution of people colluding in harassment, and to enable executives and boards of directors of targeted companies to keep their identities and addresses confidential.
Officials are acting in part out of concern that SHAC's success is spreading. Earlier this year, activists pressured Cambridge University into scrapping plans to build a primate research center, and a new campaign is seeking to force Oxford University to abandon plans for a new $35 million research laboratory.
Cass said the new laws have made a difference, although he maintains that activists still get away with intimidation. "I'll believe these things have worked when that phone rings and it's a High Street bank saying, 'We'd like you to open an account with us,' " he said.
Just as Huntingdon migrated to the United States, SHAC has followed. Kevin Kjonaas, a student at the University of Minnesota, traveled to England to work with Avery and James in the early days of the campaign. He returned to the United States and founded SHAC USA. Kjonaas is one of seven activists facing federal animal terrorism charges for allegedly conducting and encouraging violence, vandalism and intimidation against Life Sciences, Stephens Inc. and other companies. The activists, who deny the charges, argue that the authorities are violating their right of free expression by branding them as terrorists.
Despite the new pressures, Avery insisted that SHAC will triumph. Its most recent newsletter pledged to move on to demonstrations at British airports to block the importation of lab animals for testing at Huntingdon. "Time to close the gateways to hell," reads the headline, which appears under SHAC's motto: "We never give in and we always win."
© 2005 The Washington Post Company |
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| From: Paul Lee | 6/14/2005 9:06:10 PM | | | | | | LSR Announces Full Repayment of Bank Debt with Proceeds from Sale Leaseback and Internal Cash
--------------------------------------------------------------------------------
Tue Jun 14 16:05:02 2005 EST
EAST MILLSTONE, N.J., Jun 14, 2005 (BUSINESS WIRE) --
Life Sciences Research, Inc. (OTCBB: LSRI) announced
today that it paid in full its outstanding bank indebtedness of GBP
22.6 million (approximately $41.3 million) using the proceeds from the
sale-leaseback of its three operating facilities and cash on hand.
The sale-leaseback was entered into with Alconbury Estates, an
investment company controlled by Andrew Baker, the Company's Chairman
and CEO. The purchase price for the three facilities was $40 million,
consisting of $30 million cash at closing and a five year $10 million
variable rate subordinated promissory note, which Alconbury has agreed
to make a best effort to repay within twelve months. The Company has
entered into corresponding leases for those facilities for 30 years,
with 2 five-year options, with rentals commencing at $1.8 million per
year for the New Jersey facility and GBP 1.7 million ($3.1 million)
for the two U.K. facilities. Net costs to the Company associated with
this transaction were approximately $1 million. Costs incurred by
Alconbury were approximately $4.5 million, which was paid by the
Company, but will be repaid by Alconbury as agreed.
Brian Cass, LSR's President and Managing Director said, "As we
have stated in our public filings since 2001, we have long seen the
benefits of leveraging our real estate assets for long term financing,
as well as to better position the Company for future growth. This
transaction, which was made possible by the efforts and commitment of
the Company's Chairman, achieved important strategic objectives for
the Company. We have fully repaid our bank debt which was coming due
in one year and have effectively provided secure long term financing
in exchange for paying rent. Moreover, we have done so while ensuring
the continued availability of our core operating facilities to the
Company for the foreseeable future. This structure could also be
considered as a financing mechanism for possible facility expansion
for our Company should we so desire in the future."
In accordance with the provisions of FASB Interpretation No. 46R
(FIN 46), the Company will reflect the consolidation of Alconbury
Estates into its accounts until such time as the $10 million
subordinated note has been repaid. Although a significant ongoing
impact of that consolidation will be eliminated by the minority
interest entries associated with this transaction, it will mean that
the Company will not record the gain and loss associated with the sale
of the properties, nor recognize the associated decrease in
depreciation, until FIN 46 consolidation accounting no longer applies.
At that time, the Company will record a non-cash loss of approximately
$44 million for the sale of the UK properties, and a gain of
approximately $6 million, amortized over the term of the lease, for
the US property. In addition, the Company anticipates a reduction in
its annual depreciation charge of approximately $3.5 million. |
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