- 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.
|SOURCE Access Pharmaceuticals, Inc.|
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