Cellceutix Enters Into New $20 Million Common Stock Purchase Agreement With Aspire Capital Fund, LLC
October 28 2013 - 7:00AM
Marketwired
Cellceutix Enters Into New $20 Million Common Stock Purchase
Agreement With Aspire Capital Fund, LLC
Company Receives Full $10 Million Under First Agreement With
Aspire Capital
BEVERLY, MA--(Marketwired - Oct 28, 2013) - Cellceutix
Corporation (OTCQB: CTIX) (the "Company"), a clinical stage
biopharmaceutical company focused on discovering, developing and
commercializing drugs to treat unmet medical conditions, today
announced that it has entered into a new $20 million common stock
purchase agreement (the "Purchase Agreement") with Aspire Capital
Fund, LLC ("Aspire Capital"), an Illinois limited liability
company. Under the new agreement, Aspire Capital has committed
to purchase up to $20 million of Cellceutix's common stock over the
next three years at prices based on the market price at the time of
each sale. Cellceutix intends to use the net proceeds from the
Purchase Agreement primarily for ongoing clinical trials and
initiation of new clinical trials, as well as general working
capital.
On December 6, 2012, the Company had entered into a similar $10
million common stock purchase agreement with Aspire
Capital. Pursuant to that agreement, the Company sold the full
$10 million of its shares to Aspire Capital and it has been
terminated in accordance with its terms. The combination of
cash on hand from a prior $10 million agreement with Aspire Capital
and this new $20 million Purchase Agreement, significantly enhance
the financial strength and flexibility for Cellceutix to meet its
goals in conducting clinical trials in 2014 and beyond for its
anti-cancer drug Kevetrin, anti-psoriasis drug Prurisol, and
antibiotic Brilacidin.
"We are extremely pleased with the favorable financing terms
from Aspire Capital and the long-term, committed interest that they
have taken in our Company," says Leo Ehrlich, Chief Executive
Officer at Cellceutix. "As with the first agreement, we are in
control as to when shares are purchased by Aspire, providing us
with a valuable tool for accessing capital as we further develop
our pipeline. This gives our Company solid financial footing
heading into 2014, a year which we are optimistic that we will be
exploring partnering opportunities."
"Cellceutix has continued to impress us with the strength of its
pipeline and the savvy business sense of the management team,"
commented Steven G. Martin, Managing Member of Aspire
Capital. "Cellceutix's acquisition of the assets of PolyMedix
in September came at what we consider an incredibly low purchase
price, one that we feel has yet to be fully factored into the
Company's valuation. The timing was right for us to increase
our commitment to and investment in Cellceutix as we believe 2014
will represent a transformational year for the Company."
Key aspects of Purchase Agreement include:
- The Company controls the timing and amount of any sales of
common stock to Aspire Capital at a known price;
- Aspire Capital cannot require the Company to make sales,
but is obligated to make purchases as the Company directs
in accordance with the terms of the agreement; and
- No limitations on use of proceeds, financial covenants,
restrictions on future financings, rights of first
refusal, participation rights, penalties or liquidated
damages.
A more complete and detailed description of the transaction is
set forth in the Company's Current Report on Form 8-K, filed today
with the U.S. Securities and Exchange Commission.
About Cellceutix:
Headquartered in Beverly, Massachusetts, Cellceutix is a
publicly traded company under the symbol "CTIX". Cellceutix is a
clinical stage biopharmaceutical company developing and
commercializing innovative therapies in oncology, dermatology and
antibiotic applications. Cellceutix believes it has a world class
portfolio of compounds and is now engaged in advancing its existing
portfolio of clinical compounds and strategic partnerships.
Cellceutix's anti-cancer drug Kevetrin is currently in a Phase 1
clinical trial at Harvard Cancer Centers' Dana Farber Cancer
Institute and Beth Israel Deaconess Medical Center. Kevetrin in the
laboratory has been shown to induce activation of p53, often
referred to as the "Guardian Angel Gene" due to its crucial role in
controlling cell mutations. Cellceutix is planning a Phase 2
clinical trial with its novel compound Brilacidin-OM for the
prevention and treatment of Oral Mucositis. Brilacidin-OM, a
defensin mimetic compound has shown in the laboratory to reduce the
occurrence of severe ulcerative oral mucositis by more than 94%
compared to placebo. Cellceutix's anti-psoriasis drug Prurisol is
being readied for a Phase 2/3 clinical trial at sites in the U.S.
and Europe. Prurisol is a small molecule that acts through immune
modulation and PRINS reduction. Cellceutix's key antibiotic,
Brilacidin, is set to begin a Phase 2b trial in the first half of
2014 for Acute Bacterial Skin and Skin Structure Infections, or
ABSSSI. Brilacidin has the potential to be a single-dose or shorter
dosing regimen therapy for multi-drug resistant bacteria than what
is currently on the market. Cellceutix has a diverse portfolio of
novel technologies and has formed research collaborations with
world renowned research institutions in the United States and
Europe, including MD Anderson Cancer Center, Beth Israel Deaconess
Medical Center, and the University of Bologna. More information is
available on the Cellceutix web site at www.cellceutix.com.
Forward-Looking Statements
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that involve risks, uncertainties and
assumptions that could cause Cellceutix's actual results and
experience to differ materially from anticipated results and
expectations expressed in these forward looking statements.
Cellceutix has in some cases identified forward-looking statements
by using words such as "anticipates," "believes," "hopes,"
"estimates," "looks," "expects," "plans," "intends," "goal,"
"potential," "may," "suggest," and similar expressions. Among other
factors that could cause actual results to differ materially from
those expressed in forward-looking statements are Cellceutix's need
for, and the availability of, substantial capital in the future to
fund its operations and research and development; including the
amount and timing of the sale of shares of common stock to Aspire
Capital; the fact that Cellceutix's compounds may not successfully
complete pre-clinical or clinical testing, or be granted regulatory
approval to be sold and marketed in the United States or elsewhere.
A more complete description of these risk factors is included in
Cellceutix's filings with the Securities and Exchange Commission.
You should not place undue reliance on any forward-looking
statements. Cellceutix undertakes no obligation to release publicly
the results of any revisions to any such forward-looking statements
that may be made to reflect events or circumstances after the date
of this press release or to reflect the occurrence of unanticipated
events, except as required by applicable law or
regulation.
INVESTOR AND MEDIA CONTACT: Cellceutix Corp. Leo Ehrlich (978)
236-8717 Email Contact
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