BioElectronics updates business strategy

Sept. 5, 2006
By JOSEPH M. DELEON News-Post Staff
jdeleon @ fredericknewspost . com

FREDERICK— BioElectronics Corp., a Frederick-based, publicly traded biotechnology company, is expanding its footprint on the medical industry with a line of drugfree body patches and an aggressive marketing strategy.
    The Actipatch helps patients recover from surgery faster by sending a low-powered electric signal into damaged tissue.
    Plastic surgeons use the patches to help their patients recover from blepharoplasty, a cosmetic eyelid surgery.
    “The goal is to put one in every drug store over the counter,” Andy Whelan, CEO of BioElectronics said Tuesday.
    He believes that could happen by the end of next year.
    The company is marketing the patches to doctors with the help of more than 70 independent sales agents based in Utah , who mostly serve customers on the West Coast.
    The company plans to announce today a group of agents that will serve customers on the East Coast.
    An order for more than 5,000 patches will be shipped to Canada next month, sold under the name Profoot.
    BioElectronics is currently quoted on the Pink Sheets, an over-the-counter private exchange service that doesn't require its members to report to the Securities and Exchange Commission.
    The company soon expects to trade on the Over-The-Counter Bulletin Board, an electronic quote system offered by NASDAQ that shows real-time quotes for companies not listed on the NASDAQ Stock Exchange.
    To accomplish that, the company filed an SB-2 registration statement last month with the SEC. An SB-2 registration statement is filed when a small business with less than $25 million in annual revenue wants to offer securities for sale to the public.
    The company currently has 65 million shares outstanding. Approximately 23 million shares are being registered.
    “When you are a fully reporting company on the OTC bulletin board, investors have more confidence in the company's financial statements,” Mr. Whelan said. “When potential investors hear ‘Pink Sheets' they are reluctant to invest. An effective registration statement will move the company into a new investor arena.”