Pivotal Therapeutics closes financing; receives over CDN $7.7 million to further VASCAZEN® commercialization
, March 4, 2014
/PRNewswire/ - Pivotal Therapeutics Inc. (OTCQX: PVTTF) (CSE: PVO),
a specialty pharmaceutical company with a focus on Omega-3 therapies,
announced today it has completed its previously announced debt
financing issuing a total of 7,744 units at a price of CDN $1,000
unit for total proceeds of CDN $7,743,580
. Pivotal experienced greater
demand than anticipated for the Financing and as a result was
oversubscribed by 2,744 units resulting in an increase of $2,743,580
over the CDN $5,000,000
previously announced. The financing was led by
Crossover Healthcare Fund, LLC, and included Broadfin Capital, LLC and
Porter Capital Management Co.
"This round of financing, combined with the proceeds from the previous
Crossover Healthcare Fund led equity financing, has brought over CDN
$10.4 million in new investor capital to Pivotal," stated Mrs. Rachelle
MacSweeney, President and COO. "The funds put us in a strong financial
position to execute on our near and longer term growth initiatives
towards commercializing VASCAZEN®. We look forward to working with our new financial partners to build
value at Pivotal."
Each unit will consist of CDN $1,000 of Convertible Promissory Notes
(the "Note" or "Notes") and warrants to purchase 1,200 shares of common
stock of the Company (the "Warrants"). The maturity of the Notes is two
(2) years from the date of issuance. Investors may convert their Notes
into common shares for CDN $0.20 per share at anytime prior to
maturity. The conversion price has been amended to include a change
from CDN $0.25 to CDN $0.20 for each common share of the Company issued
pursuant to the Notes. The Notes will accrue interest at a rate of 8%
per annum. Warrants may be exercised for a period of 60 months
following the date of issuance, at an exercise price of CDN $0.30 per
common share. Summer Street Research Partners acted as placement agent
for the transaction.
The proceeds from the financing are being used to expand sales and
marketing, advance ongoing clinical trials, and for general working
capital, including business development.
The financing will close tomorrow in accordance with the Canadian
Securities Exchange ("the CSE") policies. For more information please
refer to the Company Form 9 Filings on the CSE website (www.thecse.com) for the complete details of the financing.
About Pivotal Therapeutics Inc.
Pivotal Therapeutics is a publicly traded (OTCQX: PVTTF) (CSE: PVO)
specialty pharmaceutical company with a focus on cardiovascular disease
and overall health. Pivotal Therapeutics' lead product VASCAZEN® is a prescription only Medical Food formulated to meet the dietary
Omega-3 deficient needs of patients with cardiovascular disease through
elevating Eicosapentaenoic acid (EPA) and Docosahexaenoic acid (DHA) to
levels associated with reduced risk of cardiovascular complications. OMAZEN® is a pharmaceutical grade Omega-3 providing over 90% pure Omega-3 in
each capsule for the maintenance of good health. OMAZEN® is a patented product available for sale and distribution in Canada.
VASCAZEN® is currently available in the U.S. as a prescription only Medical Food
specifically formulated for the dietary management of an Omega-3
deficiency in cardiovascular patients. VASCAZEN® is a >90% pure Omega-3 with a proprietary 6:1 EPA:DHA fatty acid
formulation, protected by a series of both U.S. and foreign patents.
VASCAZEN® has been clinically shown to correct an Omega-3 deficiency within eight
weeks of treatment with positive concomitant effects on the lipid
profiles, mainly a 48% reduction of triglycerides and an increase of
HDL without negative impact on the LDL-C lipid profile. VASCAZEN®'s results were achieved with a dose of 3 grams of EPA and DHA per day
of a prescription grade, high purity Omega-3.
The information contained in this document is as of March 04, 2014. This
press release contains forward-looking statements. Such forward-looking
statements are subject to a number of risks, assumptions and
uncertainties that could cause Pivotal's actual results to differ
materially from those projected in such forward-looking statements.
These statements can be identified by the use of words such as "will",
"anticipate", "estimate", "expect", "project", "forecast", "intend",
"plan", "believe", "project", "potential", and similar expressions with
any discussion of future operating or financial performance or events.
In particular, factors that could cause actual results to differ
materially from those in forward looking statements include the
following: Pivotal's inability to obtain additional financing on
acceptable terms; growth in costs and expenses; inability to compete
with others who provide comparable products; risk that the Company's
products will not gain widespread market acceptance; risks relating to
the Company's ability to maintain its CSE listing. Forward-looking
statements speak only as of the date made and are not guarantees of
future performance. The Company undertakes no obligation to publicly
update or revise any forward-looking statements contained in this
document as a result of new information or future events or
developments. CSE has not reviewed and does not accept responsibility
for the adequacy or accuracy of this information.
SOURCE Pivotal Therapeutics Inc.