Business
Quest PharmaTech Closes `Over-Subscribed' Private Placement
Quest PharmaTech Closes `Over-Subscribed' Private Placement.
About this update from Quest Pharmatech Inc.
[{"type":"text","content":"\n\n\n\nTrading Symbol: QPT: TSX Venture Exchange\n\n\n- $960,000 in equity financing\n\n\nEDMONTON, March 5 /CNW/ - Quest PharmaTech Inc. ("Quest" or the\n"Company") announces that further to its January 24, 2007 news release, and\nsubject to TSX Venture Exchange approval, the Company has closed its\nnon-brokered private placement with the sale of 9,600,000 units ("Units") for\ngross proceeds of $960,000, including $165,000 raised from insiders of the\nCompany. Originally, the Company expected to raise $800,000 (including\n$300,000 from our strategic partner KMH Co., Ltd.) through the sale of\n8,000,000 units. However, due to an increase in demand, the Company has\nincreased the size of the private placement. The Company still anticipates\nreceiving an additional $1,300,000 of equity investment from KMH Co. Ltd. upon\nreaching certain milestones related to commercialization of SL017 for hair\nremoval applications.\n\n\nThe Company is pleased to announce that it has already achieved one such\nmilestone by successfully registering SL017 as a cosmetic ingredient with the\nInternational Nomenclature of Cosmetic Ingredient as well as with the\nCosmetic, Toiletry and Fragrance Association. In addition, the Company has\nregistered SL017 in Canada as a new substance to allow import/export of the\nchemical.\n\n\nThe Units under the current private placement were sold at a price of\n$0.10 per Unit. Each Unit consisted of one common share of the Corporation\n("Common Share") and one-half of one non-transferable share purchase warrant\n("Warrant"). Each whole Warrant entitles the holder to acquire one additional\nCommon Share at a price of $0.20. The warrants will expire 12 months from the\ndate of issue.\n\n\nThe Units were issued to qualified purchasers in Alberta, British\nColumbia and outside of Canada in reliance upon exemptions from the applicable\nregistration and prospectus requirements of securities legislation. The Common\nShares and Warrants comprising the Units and the Common Shares issued upon\nexercise of the Warrants are subject to a restricted period which expires\n4 months from the date of issuance of the Units. The funds raised will be used\nfor general corporate purposes over the coming 6 months including completion\nof the ongoing 50 patient hair removal clinical trial i...