TSX Venture: QPT
EDMONTON, Nov. 21, 2013 /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 plans to close a non-brokered private placement of 10,000,000
units of the Company at a price of $0.10 per unit. Each unit will be
comprised of one common share and one common share purchase warrant.
Each whole warrant will be exercisable into common shares at a price of
$0.15 per common share. The warrants will expire two years from the
date of issuance. The private placement will be made to Mr. Hong-Gul
Cheong, 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. Cheong currently does not own any Quest's common shares. Upon
issuance of the shares under this private placement, and including
exercise of the warrants, Mr. Cheong will own approximately 18% of the
common shares of Quest on a fully diluted basis, 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. Cheong as one of Quest's
significant shareholders, 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
approved by the Company's Board of Directors.
The Company plans to use the proceeds of the $1,000,000 financing
primarily for its drug development program and general corporate
purposes. During the second quarter of this year, $2,000,000 of
funding was also received under the Company's $12,000,000 Investment
Agreement dated May 13, 2013.
About Quest PharmaTech Inc.
Quest PharmaTech is a publicly traded, Canadian based clinical stage
company developing a portfolio of product candidates for the treatment
of cancer by combining immunotherapeutic antibodies with chemotherapy,
immune-adjuvants and photodynamic therapy. Quest has a body of clinical
experience and a new appreciation of the obstacles and potential of
combinatorial immunotherapeutic approaches to cancer by using either
immunoglobulin G or E as immune modulators to enhance tumor specific
immunity and clinical outcome.
The most advanced of its product candidates is oregovomab, an anti-CA125
monoclonal antibody, in combination with front-line chemotherapy for
the treatment of advanced ovarian cancer which is currently undergoing
a phase IIb clinical trial in 12 centers in Italy and the U.S. The
Company's MUC1 program that has already undergone a phase I clinical
trial has the potential to permit tumor specific immunization in more
than 70% of all cancers that kill. Quest is also conducting a phase I
clinical trial for the treatment of prostate cancer, with its
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.
SOURCE: Quest PharmaTech Inc.
For further information:
Dr. Madi R. Madiyalakan, Chief Executive Officer, Quest PharmaTech Inc., Tel: (780) 448-1400 Ext. 204, Email: firstname.lastname@example.org, Internet: www.questpharmatech.com