AVAX Technologies, Inc. Closes Bridge Financing
Published: Dec 17, 2009
PHILADELPHIA, Dec. 16 /PRNewswire-FirstCall/ -- AVAX Technologies, Inc. ("AVAX" or the "Company") today announced that it recently closed a bridge loan financing (the "2009 Financing") pursuant to a Convertible Note and Warrant Purchase Agreement (the "Agreement") with Firebird Global Master Fund, Ltd., ("Firebird"). Pursuant to the Agreement, the Company sold a convertible promissory note, due June 30, 2010, in the aggregate principal amount of US$1,400,000, and issued a warrant to purchase an aggregate of 93,333,333 shares of the Company's common stock, par value $0.004 per share. Assuming the conversion of all shares underlying its convertible securities and the exercise of its warrants, Firebird would control a majority voting interest in the Company and it currently has a majority beneficial interest in AVAX.
The Company has also announced the addition of two additional Board members: Howard S. Fischer, a former portfolio manager/research analyst with Silverback Asset Management's Life Sciences fund and previously a senior investment banker with UBS Global Healthcare Investment banking, and Anne T. Kavanagh, former head of healthcare investment banking at PaineWebber and Prudential Securities, CEO of Natwest Securities and a current Board of Directors member of Destination Maternity .
The 2009 Financing triggered the anti-dilution provisions in the definitive agreements from a 2008 bridge funding involving the sale of convertible promissory notes and warrants ("the 2008 Financing") to certain accredited investors (including Firebird) and current and then existing insiders of the Company. The Company now has approximately 143 million common shares outstanding. This number does not include approximately 564 million common shares underlying convertible securities and the exercise of all outstanding options and warrants, which assumes an amendment to the Company's charter to increase the number of authorized shares. The holders of the notes issued in the 2008 Financing have agreed to extend the maturity date of those securities to June 30, 2010.
The Note and the Warrant were sold without registration under the Securities Act of 1933, as amended (the "Act") and may not be resold unless subsequently registered under the Act or pursuant to an exemption from registration under the Act.
AVAX Technologies, Inc. is a biotechnology company with operations in the United States and France. The Company is engaged in the research and clinical and commercial development of biological products and cancer therapeutics. The Company's AC Vaccine platform is a therapeutic cancer vaccine.
Media contact: Jamie Bittenbender +1-215-241-9760
CONTACT: Jamie Bittenbender of AVAX Technologies, Inc., +1-215-241-9760