Access Pharmaceuticals Completes $5.0 Million Convertible Note Offering

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Ask Centralassd	LSE:AKCA	London	Ordinary Share	GB0034031905	ORD 5P(ASSD CITY CENTRE REST SHS & CASH)

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

Ask Centralassd (LSE:AKCA)
Historical Stock Chart

From May 2019 to May 2024

Click Here for more Ask Centralassd Charts.

DALLAS, Feb. 17 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (OTC Pink Sheets: AKCA) announced today that it has completed an offering of 7.5% convertible notes due March 31, 2007 and common stock warrants, resulting in gross proceeds of $5.0 million. The notes and warrants were sold in a private placement to a group of investors led by SCO Capital Partners LLC. The notes mature on March 31, 2007, are convertible into company common stock at a fixed conversion rate of $0.22 per share, bear interest of 7.5% per annum and are secured by the assets of the Company. The notes may be converted at the option of the holders or the Company under certain circumstances as defined in the notes. The investors also received a 6 year warrant to purchase an aggregate number of shares of common stock equal to 75% of the total number shares of common stock convertible pursuant to the notes at an exercise price of $0.26 per share. SCO Capital has the right to designate two individuals to serve on the Company's Board of Directors while the notes are outstanding. The proceeds from this financing, together with funds expected in October 2006, will allow the clinical development of Access' lead product candidate, AP5346, to proceed as planned. As reported previously, extensive preclinical and clinical data have shown better tolerability and efficacy profile of AP5346 over oxaliplatin, which is the only currently approved DACH platinum agent for the treatment of cancer. As reported previously, Access has explored a number of strategic possibilities including mergers, financings and licensing opportunities over the past seven months. The Company believes that this financing is the best alternative available for the Company and its shareholders at the current time. In connection with the private placement the Board of Directors agreed to amend the Company's Shareholder Rights Plan and agreed to submit to the Company's stockholders for approval a 1 for 5 stock split. SCO Securities LLC acted as placement agent in connection with the private placement. About AP5346 Utilizing the biocompatible water-soluble polymer HPMA as a drug carrier, AP5346 links DACH platinum to the polymer in a manner which permits the selective release of platinum in tumors. The polymer capitalizes on the biological differences in the permeability of blood vessels at tumor sites versus normal tissue. In this way, tumor selective delivery and platinum release is achieved. Preclinical studies of the delivery of platinum to tumors in an animal model have shown that, compared with oxaliplatin at equitoxic doses, AP5346 delivers in excess of 16 times more platinum to the tumor. An analysis of tumor DNA, which is the main target for anti-cancer platinum agents, has shown that in excess of 13 times more platinum tumor DNA complexes were formed from AP5346 than oxaliplatin in these studies. Results from preclinical efficacy studies conducted in the B16 and other tumor models have also shown that AP5346 is superior to oxaliplatin in inhibiting the growth of tumors. Access Begins Trading on Over-The-Counter Pink Sheets On February 1, 2006, Access's common stock began trading on the Over-The- Counter Market in the "Pink Sheets" under the trading symbol "AKCA". Access also expects that its common stock will be quoted in the future on the OTC Bulletin Board, provided that a market maker files the necessary application with the NASD and such application is cleared. The OTCBB is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter (OTC) equity securities. OTCBB securities are traded by a community of market makers that enter quotes and trade reports. Quotations and trading information can still be accessed via websites such as Yahoo! and other quotation services or through a securities broker. Access Pharmaceuticals, Inc. is an emerging pharmaceutical company developing unique polymer linked cytotoxics for use in the treatment of cancer. Its lead product AP5346 is in Phase II clinical testing. The Company also has other advanced drug delivery technologies including vitamin-mediated targeted delivery and oral drug delivery. This press release contains certain statements that are forward-looking within the meaning of Section 27a of the Securities Act of 1933, as amended, and that involve risks and uncertainties, including but not limited to statements made relating to our liquidity, the transaction being the best alternative for our stockholders at this time, funds expected in October 2006 and the clinical development of our AP5346 product. These statements are subject to numerous risks, including but not limited to the risks detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 and other reports filed by us with the Securities and Exchange Commission. DATASOURCE: Access Pharmaceuticals, Inc. CONTACT: Stephen B. Thompson, Vice President & CFO of Access Pharmaceuticals, Inc., +1-214-905-5100; or investor relations, Donald C. Weinberger of Wolfe Axelrod Weinberger LLC, +1-212-370-4500, for Access Pharmaceuticals, Inc.

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

AKCA Ask Centralassd