EDMONTON, Feb. 27 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company") announces that it will grant, subject to TSX Venture Exchange approval, a 6 month extension to the term of the 4,800,000 share purchase warrants (the "Warrants") which are currently outstanding and due to expire during the month of March, 2008. The Warrants are exercisable into common shares of Quest at a price of $0.20 per common share.
If Exchange approval is received, the Warrants will expire on September 19, 2008. 17.4 percent of the Warrants are held by insiders of the Company.
"With the costs related to the Company's dermatology clinical trials, and the upcoming Phase I clinical trial for Prostate Cancer, the Company needs to have as many financing options as possible" said Dr. Madi R. Madiyalakan, CEO.
Quest also announces that it has reached an agreement with its debenture holders for a one year extension of the maturity date of the convertible debenture (currently the principal amount of this indebtedness is $500,000). Under the agreement, the debenture will have a maturity date of March 22, 2009, with all other conditions to remain unchanged.
The Company continues to rely upon licensing fees as the primary source for funding this year with the scheduled second milestone payment from Paramount BioSciences LLC in connection with the development of SL017 for dermatology applications, and $2,000,000 from a multinational strategic partner for oncology applications.
About Quest PharmaTech Inc: Quest PharmaTech Inc. is a publicly traded (TSX Venture Exchange: QPT), Alberta-based pharmaceutical company committed to build shareholder value through discovery, 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. The Company's lead dermatology product, SL017, is a topical formulation that is currently undergoing a 90 patient clinical trial in Canada for hair removal applications. The Company's lead oncology product, SL052, is scheduled to enter a Phase I clinical trial during the second half of 2008.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
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