American Drug Screen Goes Well over Counter
May, Bill, THE JOURNAL RECORD
The stock, traded under the symbol ADSI, closed Thursday at 17/16, down 3/16.
"We are doing real well in the market," said John Simonelli, chairman and chief executive officer. "Our stock is performing extremely well."
An initial public offering of 240,000 units of common stock and warrants, at $10 per unit, was fully subscribed before stock began trading over the counter, Simonelli said.
"With the offering, we raised $2.4 million," he said. "This is the fourth similar offering we (the American Drug management team) have put together in the past six years.
"We also handled the deal for Moto Foto, CMS Advertising and Video Imaging."
Funds from the public offering will be used to acquire a testing laboratory, which is expected within the next month, and the company will then immediately offer its services to corporations nationwide.
American Drug Screen Inc. was developed to provide laboratory testing services for corporate employees and to market a home drug testing kit. However, approval from the U.S. Food and Drug Administration is not expected for that product for another four to six months, Simonelli said.
"That product will not be on the market until it receives FDA approval," he said. "We are now conducting biological tests and providing other data required by the FDA."
There are six employees of the firm, but there are plans to expand after acquiring a laboratory site, Simonelli said.
"Naturally, the number of employees we'll need," he said, "will depend upon the size of the lab we acquire. …