BRITISH COLUMBIA, Canada, Jan. 27 /CNW/ -- InNexus Biotechnology Inc.
(OTC Bulletin Board: IXSBF; TSX VENTURE: IXS; http://www.ixsbio.com),
announced today that it has completed a second private placement on the same
terms and conditions as the private placement that was completed 12 December
The private placement, totaled $2,207,000 of 10% unsecured convertible
debentures. Each Debenture will be convertible into common shares of InNexus
at the rate of one common share for each $0.10 of debt converted. The
Debenture will have a term of 2 years. In the course of this private
placement, InNexus has redeemed $624,000 in value of preferred shares which
was reinvested by the holder of such redeemed preferred shares in the
Debenture. Net proceeds from the private placement which is approximately
$911,000 will be used by InNexus for research and development and general
In connection with the private placement, certain insiders of InNexus
comprised of the Chairman & CEO, some members of the Board and senior
management, participated on the same terms in the offering for an aggregate of
approximately 19% of the issued Debenture. InNexus paid a $7,000 finders' fee
or 7% of the proceeds was paid to an investment company from the sale of the
Debentures to purchasers referred by such finder in accordance with the
policies of the TSX Venture Exchange.
Participation in the private placement by insiders of InNexus is
considered to be a related-party transaction as defined under Multilateral
Instrument 61-101. The transaction is, however, exempt from the formal
valuation and minority shareholder approval requirements under the Instrument
as neither the fair market value of the securities being issued nor the
consideration paid exceeds 25 percent of InNexus' market capitalization.
Upon conversion of the Debenture, the common shares will be subject to a
four-month "hold period" from the date of conversion under the policies of the
TSX Venture Exchange and applicable securities legislation.
InNexus is a drug development company commercializing the next generation
of monoclonal antibodies based on its DXL technology, which improves the
potency of existing antibody products while opening new markets and disease
applications. DXL antibodies utilize unique, novel and patented methods and
technologies of InNexus.
InNexus is headquartered in British Columbia with principal management
based in Scottsdale, Arizona on the campus of Mayo Clinic and has its own
in-house developmental facilities. These development resources provide
validation of protein and peptide discoveries, enabling InNexus (and its
strategic partners) to advance novel drug therapeutics and diagnostics. To
learn more about InNexus, please visit www.ixsbio.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release. This news
release may contain assumptions, estimates, and other forward-looking
statements that involve inherent risks and uncertainties and are subject to
factors, many of which are beyond the Company's control, which may cause
actual results or performance to differ materially from those currently
anticipated in such statements.
For further information:
For further information: Wade Brooksby, Chief Financial Officer of
InNexus Biotechnology Inc., +1-480-862-7500 Web Site: http://www.ixsbio.com