Quest PharmaTech Announces $500,000 Non-Brokered Private Placement
TSX Venture: QPT
EDMONTON, May 14, 2012 /CNW/ - Quest PharmaTech Inc. (TSX-V: QPT) ("Quest" or the "Company"), a pharmaceutical company developing and commercializing products for the treatment of cancer, announced today that it has closed a non-brokered private placement of 5,000,000 common shares of the Company at a price of $0.10 per common share. The private placement will be made to Mr. Gi Ho Park, a resident of South Korea, in reliance upon applicable exemptions from the registration and prospectus requirements of such jurisdiction and is subject to regulatory approval, including approval of the TSX Venture Exchange. The shares issued will be subject to a four month hold period.
Mr. Park currently owns approximately 5% of Quest's common shares. Upon issuance of the shares under this private placement, Mr. Park will own approximately 10.4% of the common shares of Quest, and therefore will be considered an insider of Quest by virtue of owning greater than 10% of the Company's outstanding common shares.
"I personally would like to welcome Mr. Park as Quest's first significant shareholder, and thank him for the confidence he has shown in the Company by purchasing the shares at a premium price," said Dr. Madi Madiyalakan, CEO of Quest. This transaction, that may be considered to be a related party transaction, has been reviewed and unanimously approved by the Company's Board of Directors.
The Company will use the proceeds of the financing primarily for its drug development program and general corporate purposes.
About Quest PharmaTech Inc.
Quest is a publicly traded, Alberta-based biotechnology company committed to the development and commercialization of oncology product candidates. It is developing a series of products for the treatment of cancer based on its pipeline of SonoLight compounds, and monoclonal antibodies that target certain tumor antigens that are presented in a variety of cancers. Quest believes that by combining these antibodies with other cancer therapies such as chemotherapy or photodynamic therapy, it can potentially further complement and enhance treatment outcomes compared to antibody treatment alone.
The Company's lead product candidate, Oregovomab, an immunotherapeutic product for the treatment of ovarian cancer is currently undergoing a multi-center Phase IIb clinical trial in Italy. This is the first of three carefully planned proof-of-concept clinical trials to establish the superiority of combinatorial immunotherapy either with front-line chemotherapy consisting of carboplatin/paclitaxel in ovarian cancer, gemcitabine in pancreatic cancer, or with the addition of an immunoadjuvant. The Company hopes that successful results from these studies will lead to the design of a definitive product registration study.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.For further information: