Access Pharmaceuticals Completes $5.0 Million Convertible Note Offering
17 Février 2006 - 2:00PM
PR Newswire (US)
DALLAS, Feb. 17 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS,
INC. (OTC Pink Sheets: AKCA) announced today that it has completed
an offering of 7.5% convertible notes due March 31, 2007 and common
stock warrants, resulting in gross proceeds of $5.0 million. The
notes and warrants were sold in a private placement to a group of
investors led by SCO Capital Partners LLC. The notes mature on
March 31, 2007, are convertible into company common stock at a
fixed conversion rate of $0.22 per share, bear interest of 7.5% per
annum and are secured by the assets of the Company. The notes may
be converted at the option of the holders or the Company under
certain circumstances as defined in the notes. The investors also
received a 6 year warrant to purchase an aggregate number of shares
of common stock equal to 75% of the total number shares of common
stock convertible pursuant to the notes at an exercise price of
$0.26 per share. SCO Capital has the right to designate two
individuals to serve on the Company's Board of Directors while the
notes are outstanding. The proceeds from this financing, together
with funds expected in October 2006, will allow the clinical
development of Access' lead product candidate, AP5346, to proceed
as planned. As reported previously, extensive preclinical and
clinical data have shown better tolerability and efficacy profile
of AP5346 over oxaliplatin, which is the only currently approved
DACH platinum agent for the treatment of cancer. As reported
previously, Access has explored a number of strategic possibilities
including mergers, financings and licensing opportunities over the
past seven months. The Company believes that this financing is the
best alternative available for the Company and its shareholders at
the current time. In connection with the private placement the
Board of Directors agreed to amend the Company's Shareholder Rights
Plan and agreed to submit to the Company's stockholders for
approval a 1 for 5 stock split. SCO Securities LLC acted as
placement agent in connection with the private placement. About
AP5346 Utilizing the biocompatible water-soluble polymer HPMA as a
drug carrier, AP5346 links DACH platinum to the polymer in a manner
which permits the selective release of platinum in tumors. The
polymer capitalizes on the biological differences in the
permeability of blood vessels at tumor sites versus normal tissue.
In this way, tumor selective delivery and platinum release is
achieved. Preclinical studies of the delivery of platinum to tumors
in an animal model have shown that, compared with oxaliplatin at
equitoxic doses, AP5346 delivers in excess of 16 times more
platinum to the tumor. An analysis of tumor DNA, which is the main
target for anti-cancer platinum agents, has shown that in excess of
13 times more platinum tumor DNA complexes were formed from AP5346
than oxaliplatin in these studies. Results from preclinical
efficacy studies conducted in the B16 and other tumor models have
also shown that AP5346 is superior to oxaliplatin in inhibiting the
growth of tumors. Access Begins Trading on Over-The-Counter Pink
Sheets On February 1, 2006, Access's common stock began trading on
the Over-The- Counter Market in the "Pink Sheets" under the trading
symbol "AKCA". Access also expects that its common stock will be
quoted in the future on the OTC Bulletin Board, provided that a
market maker files the necessary application with the NASD and such
application is cleared. The OTCBB is a regulated quotation service
that displays real-time quotes, last-sale prices and volume
information in over-the-counter (OTC) equity securities. OTCBB
securities are traded by a community of market makers that enter
quotes and trade reports. Quotations and trading information can
still be accessed via websites such as Yahoo! and other quotation
services or through a securities broker. Access Pharmaceuticals,
Inc. is an emerging pharmaceutical company developing unique
polymer linked cytotoxics for use in the treatment of cancer. Its
lead product AP5346 is in Phase II clinical testing. The Company
also has other advanced drug delivery technologies including
vitamin-mediated targeted delivery and oral drug delivery. This
press release contains certain statements that are forward-looking
within the meaning of Section 27a of the Securities Act of 1933, as
amended, and that involve risks and uncertainties, including but
not limited to statements made relating to our liquidity, the
transaction being the best alternative for our stockholders at this
time, funds expected in October 2006 and the clinical development
of our AP5346 product. These statements are subject to numerous
risks, including but not limited to the risks detailed in the
Company's Annual Report on Form 10-K for the year ended December
31, 2004, Quarterly Report on Form 10-Q for the quarter ended
September 30, 2005 and other reports filed by us with the
Securities and Exchange Commission. DATASOURCE: Access
Pharmaceuticals, Inc. CONTACT: Stephen B. Thompson, Vice President
& CFO of Access Pharmaceuticals, Inc., +1-214-905-5100; or
investor relations, Donald C. Weinberger of Wolfe Axelrod
Weinberger LLC, +1-212-370-4500, for Access Pharmaceuticals, Inc.
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