VANCOUVER, May 2, 2012 /PRNewswire/ - Allon Therapeutics Inc. (TSX: NPC) announced today that it has completed the previously
announced brokered private placement equity offering resulting in gross
proceeds of $10 million as more particularly described below.
Gordon McCauley, President and CEO of Allon Therapeutics said Allon
remains on track to complete patient dosing in its pivotal trial in progressive supranuclear palsy (PSP) and release top-line data by late 2012.
"We have secured the financial resources needed for our pivotal trial in
PSP as we advance lead product candidate davunetide towards commercialization," McCauley said. "PSP is a devastating
neurodegenerative disease with no approved treatments and a market
potential in excess of $700 million in the U.S. and Europe."
"We are pleased to have added a number of new institutional investors
from both the U.S. and Europe in addition to the significant support
from our existing shareholders" added McCauley.
Allon sold 15,612,500 equity units and 24,387,500 subscription receipts
convertible upon shareholders approval into Units on a one-for-one
basis, both priced at $0.25 each for a total of 40,000,000 units. Each
unit consists of one common share and one half of one common share
purchase warrant. Each share purchase warrant will entitle the holder
to acquire one common share at a price of $0.40 for a period of 60
months from the closing date of the offering. The Company will seek
approval for conversion of the subscription receipts at its June 13
annual meeting. The funds for the subscription receipts have been
advanced into escrow pending the shareholders meeting. Neuro Discovery
II Limited Partnership subscribed for 19,987,500 subscription receipts
and 1,990,000 Units the proceeds of which were paid as to $2.5 million
by cancellation of a previously issued convertible debenture and the
balance in cash.
Bloom Burton & Co., a healthcare-specialized investment banking group
based in Canada, acted as the placement agent for this offering and
will receive cash commission and 1,176,906 agent's warrants exercisable
@ $0.25 into Common Shares as consideration for placing a portion of
Allon Therapeutics Inc. is a clinical-stage biotechnology company
focused on bringing to market innovative central nervous system
therapies. Allon's lead drug davunetide is proceeding in a pivotal clinical trial in an orphan indication, in progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and
Drug Administration (FDA). The trial is fully enrolled and is expected
to complete patient dosing and release top-line data by late 2012. This
pivotal trial is based upon statistically significant human efficacy
demonstrated in patients with amnestic mild cognitive impairment (a
precursor to Alzheimer's disease), cognitive impairment associated with
schizophrenia, and in positive biomarker data.
The Company is listed on the Toronto Stock Exchange under the trading
Forward Looking Statements
Statements contained herein, other than those which are strictly
statements of historical fact may include forward-looking information.
Such statements will typically contain words such as "believes", "may",
"plans", "will", "estimate", "continue", "anticipates", "intends",
"expects", and similar expressions. While forward-looking statements
represent management's outlook based on assumptions that management
believes are reasonable, forward-looking statements by their nature are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, events or developments to be
materially different from any future results, events or developments
expressed or implied by them. Such factors include, among others, the
inherent uncertainty involved in scientific research and drug
development, Allon's early stage of development, lack of product
revenues, its additional capital requirements, the risks associated
with successful completion of clinical trials and the long lead-times
and high costs associated with obtaining regulatory approval to market
any product which Allon may eventually develop. Other risk factors
include the limited protections afforded by intellectual property
rights, rapid technology and product obsolescence in a highly
competitive environment and Allon's dependence on collaborative
partners and contract research organizations. These factors can be
reviewed in Allon's public filings at www.sedar.com and should be considered carefully. Readers are cautioned not to place
undue reliance on such forward-looking statements. Similarly, nothing
in this press release is meant to promote a pharmaceutical product or
make a regulated claim of efficacy.
Rick Smith Allon Therapeutics Inc. Director, Investor Relations (604) 742-2543 email@example.com www.allontherapeutics.com
SOURCE Allon Therapeutics Inc.