Trading Symbol: QPT: TSX Venture Exchange
- $960,000 in equity financing
EDMONTON, March 5 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company") announces that further to its January 24, 2007 news release, and subject to TSX Venture Exchange approval, the Company has closed its non-brokered private placement with the sale of 9,600,000 units ("Units") for gross proceeds of $960,000, including $165,000 raised from insiders of the Company. Originally, the Company expected to raise $800,000 (including $300,000 from our strategic partner KMH Co., Ltd.) through the sale of 8,000,000 units. However, due to an increase in demand, the Company has increased the size of the private placement. The Company still anticipates receiving an additional $1,300,000 of equity investment from KMH Co. Ltd. upon reaching certain milestones related to commercialization of SL017 for hair removal applications.
The Company is pleased to announce that it has already achieved one such milestone by successfully registering SL017 as a cosmetic ingredient with the International Nomenclature of Cosmetic Ingredient as well as with the Cosmetic, Toiletry and Fragrance Association. In addition, the Company has registered SL017 in Canada as a new substance to allow import/export of the chemical.
The Units under the current private placement were sold at a price of $0.10 per Unit. Each Unit consisted of one common share of the Corporation ("Common Share") and one-half of one non-transferable share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share at a price of $0.20. The warrants will expire 12 months from the date of issue.
The Units were issued to qualified purchasers in Alberta, British Columbia and outside of Canada in reliance upon exemptions from the applicable registration and prospectus requirements of securities legislation. The Common Shares and Warrants comprising the Units and the Common Shares issued upon exercise of the Warrants are subject to a restricted period which expires 4 months from the date of issuance of the Units. The funds raised will be used for general corporate purposes over the coming 6 months including completion of the ongoing 50 patient hair removal clinical trial in Canada.
"I am very pleased with the overwhelming response we received for this round of equity financing. In addition, I am excited to welcome new investors into the Company including a few from Europe" said Dr. Madi R. Madiyalakan, CEO of the Company.
About Quest PharmaTech Inc.
The Corporation is a publicly traded (TSX Venture Exchange: QPT), Alberta-based drug development company committed to the development and commercialization of new pharmaceutical products. It is developing a series of products for the treatment of cancer and dermatological conditions based on its unique photodynamic and sonodynamic therapy platform.
Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
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