CALGARY, Jan. 4 /PRNewswire-FirstCall/ -- Patch International Inc. (PAII: OTCBB, PQG: Berlin Bremen Stock Exchange), reported that Pharmaxis (PXS: Australian Stock Exchange) announced approval by a shareholder general meeting of the $16.5 million share placement, and closure of its Share Purchase Plan (SPP). The placement and the SPP were originally announced on November 3, 2004. Patch holds 11.2 million shares in Pharmaxis and is the company’s second largest shareholder behind the Rothschild Group.
The $16.5 million placement of 22 million shares was made to institutions and sophisticated investors at 75 cents per share. Shareholders have approved this placement.
Shareholders demonstrated strong support for the Share Purchase Plan, which closed on December 3, 2004 and resulted in Pharmaxis raising over $3 million. Under the SPP, shareholders were given the opportunity to purchase shares at the same price ($0.75) paid by institutional investors.
A total of 738 shareholders participated in the SPP, under which the company will issue 4,362,092 new shares and receive approximately $3.27 million.
The company had reported that the proceeds of the placement and the share purchase plan will give the company cash reserves of more than $39 million, allowing the company to embark on the international Phase III clinical trial for Bronchitol and at the same time prepare for the marketing of their asthma management test Aridol(TM).
The placement follows successful results from Pharmaxis’s Phase II clinical trial of Bronchitol in bronchiectasis and its Phase III Aridol asthma trial. Aridol is the first management tool for asthma and offers an improved health outcome for asthma patients. Bronchitol is a patented, inhalable, dry powder that can be administered by a convenient, hand-held, pocket sized device.
Bronchitol is being developed for the management of various chronic obstructive lung diseases, in particular bronchiectasis, chronic bronchitis and cystic fibrosis. It is manufactured by Pharmaxis in the company’s TGA approved manufacturing facility in Sydney.
ABOUT PHARMAXIS
Pharmaxis is a specialist pharmaceutical company committed to the research, development, and commercialization of human therapeutic products for chronic respiratory and autoimmune diseases.
Pharmaxis is focused on the development of its two leading technologies. The first technology includes Bronchitol(TM) and Aridol(TM), which are inhaled non-ionic osmolytes. Bronchitol(TM) is being developed for the treatment of respiratory diseases - in particular, cystic fibrosis, bronchiectasis and chronic bronchitis. Aridol(TM) is an improved lung function test and is currently in a 600 subject multicentre Phase III study and over 250 subjects have been enrolled to date.
The second technology focuses on new immune response modifiers - PXS25 and PXS2000 - for the treatment of multiple sclerosis and rheumatoid arthritis. The company has a pipeline of products in different stages of development, including four projects at clinical study stage (in patients), two projects in pre-clinical evaluation, and one research project to identify a compound for development.
Pharmaxis operates a first class, TGA-licensed manufacturing facility at Frenchs Forest, near Sydney, Australia.
Pharmaxis was founded in 1998 and is chaired by Denis Hanley, former Chairman, and CEO of Memtec Limited. He has extensive experience in growing Australian technology corporations to become successful global entities.
Pharmaxis was listed on the Australian Stock Exchange in November 2003. For additional information on Pharmaxis, please visit the corporate website at http://www.pharmaxis.com.au/.
ABOUT PATCH INTERNATIONAL
Patch International was a private corporation acquired by publicly traded Praxis Pharmaceuticals early this year. Patch trades under the symbol PAII. It is also listed on the Berlin Bremen Stock Exchange where it trades under the symbol PQG.
In addition to Patch’s major investment interest in Pharmaxis (PXS: Australian Stock Exchange) where it is the company’s second largest shareholder with 11.2 million shares. Others include CIBC, HSBC, and the Rothschild Group; Patch is involved in oil and gas projects in Saskatchewan, Texas, and the East Corning area in Northern California. Additionally, Patch has made significant progress on oil and gas opportunities in Algeria and Libya.
For further information visit our corporate website at http://www.patchenergy.com/.
Contact: Investor Relations Tel: (604) 688-2790 Fax: (604) 688-5390 Email: info@patchenergy.com
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by Patch International Inc. may differ materially from these statements due to a number of factors. Patch International Inc. assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before you make investment decisions.
Patch International Inc.
CONTACT: Investor Relations, Tel: (604) 688-2790, Fax: (604) 688-5390,Email: info@patchenergy.com