Access Pharmaceuticals Announces $19.5 Million Recapi...( - $9.5 Million Institut...)

- $9.5 Million Institutional Private Placement - - $10 Million Principal Amount of Debt Exchanged for Convertible Preferred

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DALLAS, Nov. 8 /PRNewswire-FirstCall/ -- Access Pharmaceuticals, Inc. (OTC Bulletin Board: ACCP) announced today that it has executed arrangements for a $19.5 million recapitalization. The Company has entered into agreements with institutional investors to purchase an aggregate of $9.5 million in gross proceeds of the Company's newly issued Series A Convertible Preferred Stock. Lead investors in the placement transaction include SCO Capital Partners and Perceptive Life Sciences. In addition SCO Capital Partners, Oracle Partners and certain of their affiliates have agreed to exchange $10 million principal amount of senior debt into Series A Convertible Preferred Stock.

"We are delighted to complete this placement to high-quality institutional investors," said Stephen R. Seiler, Access' President and CEO. "The new capital will enable us to further a number of key objectives including pursuing and expanding our clinical trial program for Access' anti-cancer compound, ProLindac, a novel, proprietary DACH platinum which is currently in Phase 2 development. The exchange of convertible debt for Series A Convertible Preferred Stock also allows us to achieve what was one of our major corporate goals for 2007, which is to simplify our capital structure and replace debt having a short-term maturity with permanent capital."

Pursuant to the securities purchase agreements, the Company will, subject to the completion of the closing, issue to the new investors Series A Convertible Preferred Stock initially convertible into 3,179,999 shares of the Company's common stock. The investors will also receive warrants to purchase an additional 1,590,000 shares of the Company's common stock at an exercise price of $3.50. In exchange for their outstanding $10 million principal amount of con
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