COLUMBIA, Md., March 24 /PRNewswire/ -- A&G Pharmaceutical, Inc. today announced that it has closed a convertible debt financing, resulting in gross proceeds to A&G of $750,000. This financing has been provided to A&G by New England Partners, with follow-on financing by the Maryland Department of Business and Economic Development and ASM Resources, Inc.
Under the terms of the investment, A&G has issued a secured convertible debenture with a face amount of $750,000 that bears interest at a rate of 8% per annum and is due December 2006. Participants in this bridge loan will convert their investment into an equity position in A&G's Series B round of funding and may participate with additional capital. A&G is currently building a syndicate of investors for the Series B round.
A&G intends to use the net proceeds from the convertible note coupled with an SBIR grant from the National Cancer Institute to support ongoing clinical and research and development efforts on the Company's serum diagnostic kit for breast cancer. A&G is developing the kit, which is based on a new theranostic biomarker found in circulating blood, as a simple and inexpensive blood test for monitoring cancer recurrence in breast cancer patients.
ABOUT A&G PHARMACEUTICAL, INC.
A&G Pharmaceutical (http://www.agrx.net/) is a privately held theranostics company focused on the rapid development of monoclonal antibodies to disease-specific antigens as a basis for novel therapeutic and diagnostic products addressing a broad range of diseases. A&G is currently pursuing a near-term opportunity based on a patented and proprietary growth factor discovered by A&G researchers to develop and commercialize a line of diagnostic test kits that will improve early detection, diagnosis, and treatment of breast cancer. The Company has established a partnership with MedImmune, Inc. to co-develop the same biomarker as a novel breast cancer therapeutic.
This press release is available at http://www.agrx.net/.
CONTACT: Michael Keefe of A&G Pharmaceutical, Inc., +1-410-884-4100, or firstname.lastname@example.org.
A&G Pharmaceutical, Inc.
CONTACT: Michael Keefe of A&G Pharmaceutical, Inc., +1-410-884-4100, email@example.com