Trading Symbol: QPT: TSX Venture Exchange
- $960,000 in equity financing
EDMONTON, March 5 /CNW/ - Quest PharmaTech Inc. ("Quest" or the
"Company") announces that further to its January 24, 2007 news release, and
subject to TSX Venture Exchange approval, the Company has closed its
non-brokered private placement with the sale of 9,600,000 units ("Units") for
gross proceeds of $960,000, including $165,000 raised from insiders of the
Company. Originally, the Company expected to raise $800,000 (including
$300,000 from our strategic partner KMH Co., Ltd.) through the sale of
8,000,000 units. However, due to an increase in demand, the Company has
increased the size of the private placement. The Company still anticipates
receiving an additional $1,300,000 of equity investment from KMH Co. Ltd. upon
reaching certain milestones related to commercialization of SL017 for hair
The Company is pleased to announce that it has already achieved one such
milestone by successfully registering SL017 as a cosmetic ingredient with the
International Nomenclature of Cosmetic Ingredient as well as with the
Cosmetic, Toiletry and Fragrance Association. In addition, the Company has
registered SL017 in Canada as a new substance to allow import/export of the
The Units under the current private placement were sold at a price of
$0.10 per Unit. Each Unit consisted of one common share of the Corporation
("Common Share") and one-half of one non-transferable share purchase warrant
("Warrant"). Each whole Warrant entitles the holder to acquire one additional
Common Share at a price of $0.20. The warrants will expire 12 months from the
date of issue.
The Units were issued to qualified purchasers in Alberta, British
Columbia and outside of Canada in reliance upon exemptions from the applicable
registration and prospectus requirements of securities legislation. The Common
Shares and Warrants comprising the Units and the Common Shares issued upon
exercise of the Warrants are subject to a restricted period which expires
4 months from the date of issuance of the Units. The funds raised will be used
for general corporate purposes over the coming 6 months including completion
of the ongoing 50 patient hair removal clinical trial in Canada.
"I am very pleased with the overwhelming response we received for this
round of equity financing. In addition, I am excited to welcome new investors
into the Company including a few from Europe" said Dr. Madi R. Madiyalakan,
CEO of the Company.
About Quest PharmaTech Inc.
The Corporation is a publicly traded (TSX Venture Exchange: QPT),
Alberta-based drug development company committed to the development and
commercialization of new pharmaceutical products. It is developing a series of
products for the treatment of cancer and dermatological conditions based on
its unique photodynamic and sonodynamic therapy platform.
Except for historical information, this press release may contain
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
For further information:
For further information: Dr. Madi R.Madiyalakan, CEO, Tel.: (780)
448-1400 (Ext. 204), email@example.com, Web site: