News | News By Subject | News by Disease News By Date | Search News
Get Our FREE
Industry eNewsletter
email:    
   

Allon Therapeutics, Inc. Announces Private Placement



4/16/2012 10:08:24 AM

VANCOUVER, April 16, 2012 /PRNewswire/ - Allon Therapeutics Inc. (TSX: NPC) announced today that it plans to complete a brokered private placement equity offering to raise approximately $10.0 million. The placement is substantially committed. The proceeds will be used for the completion of Allon's ongoing pivotal clinical trial, testing lead product candidate davunetide as a potential treatment for progressive supranuclear palsy (PSP) and general corporate purposes. Allon expects to complete the pivotal trial in Q4 2012.

The Company is offering equity units and subscription receipts, both priced at $0.25 each for a total of approximately 40,000,000 units. Each unit consists of one common share and one half of one common share purchase warrant. Each share purchase warrant will entitle the holder to acquire one common share at a price of $0.40 for a period of 60 months from the closing date of the offering. The subscription receipts which are expected to be about half the placement, are required by TSX rules pertaining to insider participation and dilution triggers, convert into identical units subject to shareholders approval which the Company will seek at its June 13 annual meeting. The funds for the subscription receipts will be advanced into escrow pending the shareholders meeting. Neuro Discovery II LP, an insider, is participating in the placement through the purchase of at least $2.5 million of subscription receipts which will be partially funded by the proceeds from the concurrent repayment of the $2.5 million convertible debenture it subscribed for in February, 2012.

The private placement is subject to all necessary regulatory approvals including the approval of the TSX. The Company intends to close this placement on or about April 19, 2012.

Bloom Burton & Co., a healthcare-specialized investment banking group based in Canada, is acting as the placement agent for this offering and will receive cash commission and agent's warrants on a portion of the placement. A news release will be issued on completion disclosing the final placement participation details.

About Allon
Allon Therapeutics Inc. is a clinical-stage biotechnology company focused on bringing to market innovative central nervous system therapies. Allon's lead drug davunetide is proceeding in a pivotal clinical trial in an orphan indication, in progressive supranuclear palsy (PSP), under a Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). The trial is fully enrolled and is expected to complete patient dosing and release top-line data by late 2012. This pivotal trial is based upon statistically significant human efficacy demonstrated in patients with amnestic mild cognitive impairment (a precursor to Alzheimer's disease), cognitive impairment associated with schizophrenia, and in positive biomarker data.

The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC".

Forward Looking Statements
Statements contained herein, other than those which are strictly statements of historical fact may include forward-looking information. Such statements will typically contain words such as "believes", "may", "plans", "will", "estimate", "continue", "anticipates", "intends", "expects", and similar expressions. While forward-looking statements represent management's outlook based on assumptions that management believes are reasonable, forward-looking statements by their nature are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by them. Such factors include, among others, the inherent uncertainty involved in scientific research and drug development, Allon's early stage of development, lack of product revenues, its additional capital requirements, the risks associated with successful completion of clinical trials and the long lead-times and high costs associated with obtaining regulatory approval to market any product which Allon may eventually develop. Other risk factors include the limited protections afforded by intellectual property rights, rapid technology and product obsolescence in a highly competitive environment and Allon's dependence on collaborative partners and contract research organizations. These factors can be reviewed in Allon's public filings at www.sedar.com and should be considered carefully. Readers are cautioned not to place undue reliance on such forward-looking statements. Similarly, nothing in this press release is meant to promote a pharmaceutical product or make a regulated claim of efficacy.

Rick Smith
Allon Therapeutics Inc.
Director, Investor Relations
(604) 742-2543
info@allontherapeutics.com
www.allontherapeutics.com

SOURCE Allon Therapeutics Inc.


Read at BioSpace.com


comments powered by Disqus
   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES