BASKING RIDGE, N.J., Oct. 24 /PRNewswire-FirstCall/ -- VioQuest Pharmaceuticals, Inc., (OTC Bulletin Board: VQPH.OB - News), a New Jersey-based biopharmaceutical company, announced today that it has completed a private placement of its securities resulting in total gross proceeds of approximately $4.0 million through the issuance of approximately 7.9 million shares of common stock at a price of $0.50 per share. Purchasers also received five- year warrants to purchase an additional approximately 2.8 million shares of common stock at an exercise price of $0.73 per share. Paramount BioCapital, Inc. acted as the exclusive placement agent.
Daniel Greenleaf, President and CEO of VioQuest, said, “We are gratified by the ongoing support from our existing shareholders and the confidence exhibited by new shareholders. We believe these funds, in addition to our ongoing exploration of strategic options for our Chiral Quest business, which may include receiving funds from its potential sale, will strengthen our balance sheet as we continue to meet our clinical goals. With two compounds in four clinical trials and a potential NDA filing in 2007 for one of our product candidates for a non-cancer application, our corporate targets are being met according to our planned objectives.”
VioQuest has agreed to file a registration statement under the Securities Act of 1933 covering the resale of the shares issued in the private placement within 30 days and to use its best efforts to have such registration statement declared effective within 120 days. The sale of the shares and warrants was made in reliance on the exemption from the registration requirements of the Securities Act provided by Regulation D of the Securities Act.
About VioQuest Pharmaceuticals, Inc.
VioQuest Pharmaceuticals, Inc. focuses on acquiring, developing, and commercializing targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. VioQuest has two targeted therapeutics in clinic trials: VQD-001, an inhibitor of specific protein tyrosine phosphatases, has shown compelling preclinical activity in both renal and melanoma cancers, and VQD-002 which inhibits the phosphorylation of Akt which can be seen in abnormal levels in breast, ovarian, colorectal, pancreatic, and liquid cancers.
VioQuest’s subsidiary Chiral Quest, Inc., a pioneer in asymmetric chemocatalysis and custom synthesis, offers its proprietary technology products to well-known pharmaceutical and fine chemical companies worldwide to improve their production efficiencies and, in some instances, to increase the overall safety and efficacy of the underlying drug.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest’s actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as anticipates, expects, plans, believes, intends, and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that VioQuest will receive any proceeds in connection with a sale or other disposition of its Chiral Quest division, that the FDA will approve VioQuest’s planned NDA submission relating to VQD-001 for the treatment of leishmaniasis, and even if approved, there is no assurance that VioQuest will be able to successfully commercialize VQD-001 for the treatment of leishmaniasis or any other indication. Other risks and uncertainties include the possibility that the results of clinical trials will not support VioQuest’s claims, the possibility that VioQuest’s development efforts relating to its product candidates, including VQD-001 and VQD-002, will not be successful, the inability to obtain regulatory approval of VioQuest’s product candidates, VioQuest’s reliance on third-party researchers to develop its product candidates, its lack of experience in developing and commercializing pharmaceutical products, and the possibility that its licenses to develop and commercialize its product candidates may be terminated. Additional risks are described in VioQuest’s Annual Report on Form 10-KSB for the year ended December 31, 2005. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
VioQuest Pharmaceuticals, Inc.: Noonan Russo: Diane Perry Investors: VP Corporate Communications & Sharon Weinstein 212-845-4271 Investor Relations Media: 908-766-4400 / 917-834-7526 Ben Carmichael 212-845-4242
Source: VioQuest Pharmaceuticals, Inc.
