OTTAWA, Feb. 24 /PRNewswire/ - StemPath Inc., a biotechnology company developing novel peptide-based pharmaceuticals to stimulate heart and skeletal muscle regeneration, today announced that it has entered into definitive agreements for a CDN $1 million private placement with New Generation Biotechnology Funds. StemPath expects to use the proceeds of this transaction to bring its first drug candidates, aimed at treating acute myocardial infarction and skeletal muscle myopathies, into the preclinical testing phase.
The financing involves Convertible Debentures purchased in two tranches. The first tranche debenture is for an aggregate principal amount of CDN $700,000 and the second tranche debenture, which is conditional upon StemPath meeting performance milestones, is for an aggregate principal amount of CDN $300,000.
"We are very pleased with the promising results we have obtained and the efficacy we have demonstrated to date," said Jan A. Alfheim, President of StemPath. "Our investors continue to share our excitement about the significant potential for regenerating damaged heart muscle in patients who have suffered myocardial infarction or other heart conditions."
Genesys Capital Partners Inc. (manager of the New Generation Biotechnology family of funds) is continuing to support the Company in its research efforts. "We are excited about the results that are coming out of StemPath's research labs, and we believe that with this new investment, the company will be in a position to move to the next stage of development," commented Jamie Stiff, Principle at Genesys.
The Ottawa Health Research Institute (OHRI) is a major shareholder in the company and a key collaborator. "StemPath is an important extension of the OHRI's vision to become the premier centre for stem cell research and regenerative medicine in Canada," said Robert Hanlon, Chief Operating Officer of the OHRI and Board Chair of StemPath. "We are very pleased that the company continues to have the support of the investment community."
StemPath Inc.CONTACT: Jan A. Alfheim, President, StemPath Inc., (613) 798 5555 ext.13430, cell: (613) 853 6080, fax: (613) 761 4920, jalfheim@stempath.com;www.StemPath.com
