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TORONTO, Oct. 21, 2014 /CNW/ - Amorfix Life Sciences Ltd. (the "Corporation") announces today that it has closed the first tranche of a non-brokered private placement (the Offering) pursuant to which 1,260,000 common shares of Amorfix (Shares) and 1,260,000 Warrants were issued for gross proceeds of CDN$352,800.
The Company intends to use the net proceeds of the Offering to continue the development of its research programs including its cancer therapeutic program, ProMIS™ and its Alzheimer's disease and for general corporate purposes including the completion of on-going discussions with multiple partners for a variety of business deals focused on the formation of strategic alliances and partnerships to advance the Company's therapeutic and diagnostic programs.
Each Warrant entitles the holder to purchase one Share at a price of CDN$ 0.50 for a period of 36 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.
All securities issued in connection with the Offering are 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 securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
In addition, the Company announced that it will get the rights back for development and commercialization of the ALS antibody therapeutics originally licensed to Biogen-Idec effective January 14, 2015.
"We have had an excellent working relationship with Biogen-Idec over the last four years. They have added significantly to our understanding of the pathogenic role of misfolded SOD1 (mSOD1) in ALS and the potential for antibody therapeutics for treatment of ALS patients", said CEO Dr. Robert Gundel. "Based on extensive preclinical data and our expertise in the area of ALS and misfolded protein diseases, we are confident that this technology can be developed, commercialized and used to improve the health of those who suffer from this terrible disease. Now that the rights to the technology will revert back to Amorfix, the Company intends to continue this development project. This program, combined with our recently issued patent covering ALS treatment with any antibody that binds wildtype mSOD1 selectively and our blood test diagnostic in development, puts Amorfix in a leading position in this therapeutic area. "
"There is a growing body of evidence supporting the use of antibodies targeting mSOD1 for the treatment of ALS" said Dr. Neil Cashman. "We and others have demonstrated that mSOD1 acquires the ability to propagate and induce the misfolding of normal SOD1, which may explain how the disease progresses. We have shown that our antibodies inhibit this propagating effect and, as a result, could significantly slow down or arrest disease progression".
About Amorfix SOD1 Antibodies for the treatment of ALS
In ALS patients, the propagation of aggregated misfolded SOD1 protein kills the nerve cells that supply muscles. As a result, the patient becomes progressively paralyzed and unable to breathe. Neil Cashman, Amorfix CSO, discovered that misfolded SOD1 exposes regions of the protein that are buried in the properly folded form, and that specifically targeting these misfolded regions have the ability to neutralize the toxicity to nerve cells. Amorfix has developed therapeutic antibodies that recognize only the harmful, misfolded SOD1 and spare normal SOD1 protein to preserve its normal protective activity.
Amyotrophic lateral sclerosis (ALS) is a fatal neuromuscular disease that afflicts approximately 30,000 individuals in North America, with 5,000 new cases per year. ALS, also known as Lou Gehrig's disease, produces weakness and atrophy in the muscles that control movement, speech, swallowing, and respiration. These muscles weaken and atrophy due to degeneration of motor nerve cells in the spinal cord and brain. Half of affected individuals die within three years and survival over five years is less than 20%. There is currently no cure for ALS, and current treatments have limited effects.
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 both Alzheimer's disease (AD) and mild cognitive impairment (MCI), 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 information release may contain certain forward-looking information. Such information 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 as well as other factors. 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.
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, [email protected]; Warren Whitehead, Chief Financial Officer, Amorfix Life Sciences Ltd., Tel: (416) 644-7358, Fax: (416) 847-6899, [email protected]