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
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: email@example.com, Internet: www.questpharmatech.com