Callisto Pharmaceuticals Announces $3.0 Million Financing by Its Synergy Pharmaceuticals Subsidiary and Related Transactions Leaving Callisto with a 68% Stake in Synergy
Published: Jul 21, 2008
NEW YORK--(BUSINESS WIRE)--Callisto Pharmaceuticals, Inc. (Pink Sheets: CLSP; FWB: CA4), announced today that its Synergy Pharmaceuticals, Inc. closed a $3.0 million private placement. The proceeds of the private placement will be used to fund the development of SP-304, its guanylate cyclase C (GC-C) receptor agonist, for chronic constipation (CC) and constipation-predominant irritable bowel syndrome (IBS-C). Simultaneously with the closing of the placement, Callisto and certain recipients of Synergy restricted stock awards exchanged all of the outstanding stock of Synergy for approximately 70% of the common stock of Pawfect Foods, Inc., a Florida corporation (PWFF.OB). Pawfect Foods has filed an amendment to its articles of incorporation to, among other things, change its corporate name to “Synergy Pharmaceuticals, Inc.” As a result of the financing, exchange of shares, cancellation of 1,981,503.650 of 2,000,000 outstanding shares of Pawfect common stock held by a principal stockholder and Pawfect effecting a 75.69060773 for one forward stock split approved by Pawfect’s board and principal stockholder expected to be effective within 10 days, Synergy became a wholly owned subsidiary of Pawfect and Callisto retains an approximately 68% interest in Synergy and its GC-C receptor agonist platform.