- Private Placement of Convertible Preferred Stock -
DALLAS, Jan. 29 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (OTC Bulletin Board: ACCP) announced today that it has executed agreements for $2.7 million in new equity. The Company has entered into agreements with institutional and accredited investors to purchase an aggregate of $2.7 million in gross proceeds of the Company's Series A Convertible Preferred Stock. This equity is in addition to the $9.5 million in gross proceeds announced in November 2007.
"We are excited to complete this placement of the Company's Series A Convertible Preferred Stock," said Jeffrey B. Davis, Access' CEO. "The additional new capital will enable us to fund 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."
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 908,000 shares of the Company's common stock. The investors will also receive warrants to purchase an additional 454,000 shares of the Company's common stock at an exercise price of $3.50. Upon closing, certain of the Company's Series A Convertible Preferred Stock will be amended.
Closing of the transaction is subject to the fulfillment of customary and usual closing conditions.
ProLindac is a novel DACH platinum prodrug which has been shown to be active in a wide variety of solid tumors in both preclinical models and in human trials. Access believes that ProLindac's unique molecular design potentially could eliminate some of the toxic side effects seen in the currently marketed DACH platinum, Eloxatin, which has sales in excess of $2 billion.
Access Pharmaceuticals, Inc. is an emerging biopharmaceutical company that develops and commercializes propriety products for the treatment and supportive care of cancer patients. Access' products include ProLindac(TM), currently in Phase 2 clinical testing of patients with ovarian cancer, and MuGard(TM) for the management of patients with mucositis. The company also has other advanced drug delivery technologies including Cobalamin(TM)-mediated targeted delivery and oral drug delivery, its proprietary nanopolymer delivery technology based on the natural vitamin B12 uptake mechanism; Angiolix(R), a humanized monoclonal antibody which acts as an anti-angiogenesis factor and is targeted to breast cancer; Prodrax(R), a non-toxic prodrug which is activated in the hypoxic zones of solid tumors to kill cancer cells; Alchemix, a chemotherapeutic agent that combines multiple modes of action to overcome drug resistance. Access is also developing Phenylbutyrate ("PB"), an HDAC inhibitor and differentiating agent currently a Phase 2 clinical candidate. For additional information on Access Pharmaceuticals, please visit our website at http://www.accesspharma.com.
This press release contains certain statements that are forward-looking within the meaning of Section 27a of the Securities Act of 1933, as amended, and that involve risks and uncertainties. These statements include those relating to: our ability to close the financing transaction, early results from our clinical trial, Access' plans to continue and initiate clinical trials, the value of its products in the market, its ability to achieve clinical and commercial success and its ability to successfully develop marketed products. These statements are subject to numerous risks, including but not limited Access' need to obtain additional financing in order to continue the clinical trial and operations and to the risks detailed in Access' Annual Reports on Form 10-KSB and other reports filed by Access with the Securities and Exchange Commission.
|SOURCE Access Pharmaceuticals, Inc.|
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