Business
Quest PharmaTech Provides Financial Update
TSX Venture: QPT EDMONTON , Sept. 16, 2014 /CNW/ - Quest PharmaTech Inc. (TSX-V:...
About this update from Quest Pharmatech Inc.
[{"type":"text","content":"\n\nTSX Venture: QPT\n\n\n\nEDMONTON, Sept. 16, 2014 /CNW/ - Quest PharmaTech Inc. (TSX-V: QPT) (\"Quest\" or the \"Company\"), a pharmaceutical company developing and commercializing products for the treatment of cancer, today provides the following financial update.\n\nUnder mutually agreed terms, AD Biotech and Quest have determined to terminate the $12,000,000 investment agreement due to AD Biotech's inability to provide further funding under the agreement.  AD Biotech has already provided $2,000,000 of funding under the agreement for which it will receive certain rights to Oregovomab.\n\nAs a result of AD Biotech's funding shortfall and in order to provide Quest with time to seek out longer term funding alternatives while continuing with the Company's clinical trial programs, Quest has obtained $450,000 of interim bridge financing in the form of 8% demand loans from third parties.\n\nIn addition to the demand loan financing, Quest announces that it has closed a $411,500 unit offering private placement.  This financing is a non-brokered private placement of 6,858,333 units of the Company at a price of $0.06 per unit.  Each unit is comprised of one common share and one half of one common share purchase warrant.  Each whole warrant is exercisable into common shares at a price of $0.10 per common share.  The warrants will expire two years from the date of issuance.  The Company will use the proceeds primarily for its drug development program and for general corporate purposes. The private placement is subject to regulatory approval, including approval of the TSX Venture Exchange.  The shares issued will be subject to a four month hold period.\n\n\"Quest has been challenged financially these past few months due to AD Biotech's inability to provide the necessary funding under the investment financing agreement.  In spite of that hurdle, I am pleased with the Company's response and I am optimistic about the Company's future as we seek long term financing, await clinical data and position the Company for growth in the future,\" said Mr. Pierre Vermette, CFO of Quest.\n\nIn other news, the Company announces that it will hold its shareholder AGM on November 6, 2014. \n\nAbout Quest PharmaTech Inc. \n\n\nQuest PharmaTech is a publicly traded, Canadian based clinical stage company developing...