ChemGenex Pharmaceuticals Limited Completes Capital Raising A$10 Million, Announces Rights Issue
ChemGenex placed 23,255,814 fully paid ordinary shares in the Company at an issue price of A$0.43 per share to raise gross proceeds of A$10 million.
In addition to the placement, ChemGenex intends to offer eligible ChemGenex shareholders the opportunity to participate in a non-renounceable rights issue to acquire 1 new share for every 14 shares held to be issued at the same price as the placement, being A$0.43 per share, to raise up to an additional A$7.4 million.
The terms and conditions of the rights issue, along with the key dates for participants will be announced in due course.
The placement was anchored by substantial commitments from existing significant shareholders including GBS Venture Partners, the international pharmaceutical company Merck Serono, and Orbis Funds Management. The current investment will make Orbis Fund Management a substantial shareholder in the company.
The aggregate raising of a potential A$17.4 million will be applied to:
* complete the clinical development of omacetaxine in T315I positive CML; * complete the regulatory filings in the USA and Europe for omacetaxine in T315I positive CML; * progress pre-commercialization and partnering discussions concerning omacetaxine; and * prepare for the commercial launch of omacetaxine in the United States.
“We are delighted to have completed this capital raising in a difficult financial climate, and look forward to further consolidating our financial position through the rights issue,” said Greg Collier, Ph.D., Chief Executive Officer and Managing Director. “We look forward to completing the regulatory submissions for omacetaxine in the US and Europe over the coming months, and to preparing for the commercial launch of omacetaxine.”
ChemGenex anticipates immediate resumption of trading on ASX effective from market open on 9 April 2009.
ABN AMRO Morgans Corporate Limited acted as Manager to the placement and has agreed to act as Lead Manager for the rights issue.
An updated corporate presentation is available at the company’s website (http://www.chemgenex.com/wt/page/presentation_archive).
About ChemGenex Pharmaceuticals Limited (http://www.chemgenex.com)
ChemGenex Pharmaceuticals is a pharmaceutical development company dedicated to improving the lives of patients by developing personalized oncology medicines. ChemGenex harnesses the power of genomics both to discover novel targets and drug compounds, and in clinical trials to develop more individualized treatment outcomes. ChemGenex’s lead compound, omacetaxine mepesuccinate, is currently in phase 2/3 clinical trials for chronic myeloid leukemia (CML). ChemGenex has a second anticancer compound, amonafide dihydrochloride (Quinamed®) which is in phase 2 clinical development for various solid cancers, and a portfolio of assets in pre-clinical development. ChemGenex currently trades on the Australian Stock Exchange under the symbol "CXS" and on NASDAQ under the symbol "CXSP". For additional information on ChemGenex Pharmaceuticals, please visit our web site at http://www.chemgenex.com.
Details on the clinical trials can be accessed from the following websites; http://clinicaltrials.gov/ct2/show/NCT00375219?term=homoharringtonine&rank=9 and http://www.tkiresistantcmltrials.com
Safe Harbor Statement
Certain statements made herein (including for this purpose sites to which a hyperlink has been provided) that use the words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the company to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the development of the company’s technology, the ability to successfully market products in the clinical pipeline, the ability to advance promising therapeutics through clinical trials, the ability to establish our fully integrated technologies, the ability to enter into additional collaborations and strategic alliances and expand current collaborations and obtain milestone payments, the suitability of internally discovered genes for drug development, the ability of the company to meet its financial requirements, the ability of the company to protect its proprietary technology, potential limitations on the company’s technology, the market for the company’s products, government regulation in Australia and the United States, changes in tax and other laws, changes in competition and the loss of key personnel. These statements are based on our management’s current expectations and are subject to a number of uncertainties that could change the results described in the forward-looking statements. Investors should be aware that there are no assurances that results will not differ from those projected.
Contact:
ChemGenex Dr. Greg Collier CEO and Managing Director Cell (Australia): +61 419 897 501 Cell (USA): +1-650-200-8145 gcollier@chemgenex.com or Media Relations – Australia Buchan Consulting Therese Minehan, +61 2 9237 2800 Cell: + 61 (0) 414 388 955 tminehan@bcg.com.au or Media Relations - USA Kureczka/Martin Associates Joan Kureczka, +1-415-821-2413 Jkureczka@comcast.net