Star Scientific CEO, shareholders investing $20M

Print
Email
|

Associated Press

Posted on November 16, 2012 at 8:01 AM

Updated Friday, Nov 16 at 10:01 AM

RICHMOND, Va. (AP) — Star Scientific Inc. says its CEO and several shareholders are investing $20 million in the dietary supplement company and its top executive also is reducing his salary until the firm is profitable.

The Glen Allen, Va.-based company said Friday that CEO Jonnie R. Williams and several long-term shareholders made the investment through the exercise of outstanding warrants.

Starting in January, Williams also will cut his salary to $1 per month.

The company cautioned earlier this week that it may need to seek additional funding to sustain its operations early next year.

Star Scientific had once focused primarily on researching a tobacco curing process that would prevent the formation of carcinogenic toxins. It has since shifted its focus toward the dietary supplements it sells through its subsidiary Rock Creek Pharmaceuticals.

Print
Email
|