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TORONTO, May 8, 2012 /CNW/ - Amorfix Life Sciences Ltd. (Amorfix or the
Company) announced today that it intends to complete, subject to
regulatory approval, a non-brokered private placement of up to
2,500,000 units (Units) at a price of $0.40 per Unit, for gross
proceeds of $1,000,000, of which commitments to subscribe for 2,200,000
units have been received.
Each Unit will consist of one common share of Amorfix (a Share) and
one-half common share purchase warrant of Amorfix (a Warrant). Each
Warrant will entitle the holder to purchase one Share at a price of
$0.80 for a period of 24 months following the closing date of the
Offering, subject to earlier expiry in the event (a trigger event)
that, following the expiry of the four month hold period, the
volume-weighted average price of Amorfix's common shares on the Toronto
Stock Exchange (TSX) over a period of twenty consecutive trading days
exceeds $1.00. On the occurrence of a trigger event, Amorfix may give
notice to holders to accelerate the expiry to a date which is not less
than 30 calendar days after such notice is sent to the holders.
In connection with the Offering, Amorfix may pay finder fees of up to 8%
of the gross proceeds and issue finder warrants, having the same terms
as the Warrants, to acquire Shares equal to up to 8% of the Units sold.
"This financing will enable us to reach several important project
milestones as we continue to build our product pipeline of innovative
diagnostics and antibody therapeutics" said Dr. Robert Gundel, Amorfix
President and Chief Executive Officer. "We are moving forward to
complete our proof of concept studies of our lead PrP antibody in
animal models of ovarian cancer. We expect the results of these
studies to be available in Q3 of this year. In addition, we are
evaluating the specific binding of the antibodies we developed that
target the Fas receptor, a protein that is known to be associated with
many types of cancer, to a number of cancer cells and comparing this
binding to normal cells. We expect to have our lead candidate
identified this quarter."
All securities issued in connection with the Offering will be subject to
a four month hold period from the date of issuance in accordance with
applicable securities law. The closing of the Offering is subject to
receipt of TSX approval.
The Company intends to use the net proceeds of the Offering to continue
the development and of its research programs including its cancer
therapeutic program, ProMIS, its Alzheimer's disease and ALS diagnostic
programs and for general corporate purposes.
Amorfix Life Sciences Ltd. (TSX:AMF) is an early-stage product
development company developing therapeutic antibodies and diagnostics
targeting misfolded protein diseases. Amorfix utilizes its
computational discovery platform, ProMIS™, to predict novel Disease
Specific Epitopes (DSEs) on the molecular surface of misfolded
proteins. Using this technology, Amorfix is developing novel antibody
therapeutics and companion diagnostics for cancer and amyotrophic
lateral sclerosis (ALS). In addition, Amorfix has developed two
proprietary technologies to specifically identify very low levels of
misfolded proteins in a biological sample: Epitope Protection™ and
AMFIA™, an ultra-sensitive dual-bead immunoassay. Use of these
technologies has generated a cerebrospinal fluid (CSF) screening test
for Alzheimer's disease (AD), and an ultrasensitive method for
detecting the hallmark of AD, aggregated beta-Amyloid, in brain tissue,
CSF and blood from animal models of AD. For more information about
Amorfix, visit www.amorfix.com.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
This news release contains certain forward-looking information, which
involves known and unknown risks, uncertainties and other factors that
may cause actual results, performance or achievements to be materially
different from those implied by statements herein, and therefore these
statements should not be read as guarantees of future performance or
results. All forward-looking statements are based on the Company's
current beliefs as well as assumptions made by and information
currently available to it, such as the commitments of potential
subscribers that are not binding legal obligations, as well as other
factors, that are subject to change. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Due to risks and
uncertainties, including the risks and uncertainties identified by the
Company in its public securities filings, actual events may differ
materially from current expectations. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, unless required by law.
ProMIS™, Epitope Protection™ and AMFIA™ are trademarks of Amorfix Life
SOURCE Amorfix Life Sciences Ltd.
For further information:
Dr. Robert Gundel
President and Chief Executive Officer
Amorfix Life Sciences Ltd.
Tel: (416) 847-6957
Fax: (416) 847-6899
Acting Chief Financial Officer
Amorfix Life Sciences Ltd.
Tel: (416) 847-6926
Fax: (416) 847-6899