Argos Provides Financial Update
November 28 2017 - 8:00AM
Argos Therapeutics Inc. (NASDAQ:ARGS), an immuno-oncology company
focused on the development and commercialization of individualized
immunotherapies based on the Arcelis® precision immunotherapy
technology platform, today announced that TKC Properties, the
landlord of the facility in Durham County, NC that Argos had
previously intended to utilize as its primary manufacturing
facility (“Centerpoint”), has, with Argos’ full consent,
successfully completed the sale of this facility to a third party.
In connection with this transaction, Argos has entered into a lease
termination agreement with TKC pursuant to which Argos received
cash proceeds of approximately $1.8 million. Additionally, Argos is
no longer required to maintain restricted cash of approximately
$0.7 million as a security deposit under the lease.
Argos today also reported that it has raised
approximately $6.8 million of net proceeds under its at-the-market
stock issuance facility with Cowen & Company subsequent to the
close of the third quarter on September 30, 2017. The Company also
announced that it has entered into a satisfaction and release
agreement with one of its principal vendors, pursuant to which the
Company restructured a $4.0 million deferred payment obligation by
issuing an unsecured amortizing convertible note with a maturity
date of September 30, 2020 in the approximate amount of $2.4
million, transferring ownership to the vendor of certain equipment
developed by the vendor for Argos and valued at approximately $1.0
million, and making a payment of approximately $0.6 million as a
combination of cash and common stock.
As a result of these transactions, the Company
believes it now has sufficient cash to execute its business plan at
least through June 2018. Jeff Abbey, president and chief executive
officer of Argos, stated, “We are pleased to have significantly
extended our cash runway through these recent transactions. As
noted previously, we expect the next interim data analysis of the
ADAPT clinical trial of Rocapuldencel-T in combination with
sunitinib for the treatment of metastatic renal cell carcinoma to
occur during the first half of 2018, subject to agreement with the
FDA on an amended protocol. We therefore believe that we now have
sufficient funding to achieve this important milestone, as well as
to continue to support the ongoing Phase 2 clinical trial of
AGS-004 in combination with vorinostat targeting HIV eradication in
adult patients.”
About Argos Therapeutics
Argos Therapeutics is an immuno-oncology company
focused on the development and commercialization of individualized
immunotherapies for the treatment of cancer and infectious diseases
using its Arcelis® technology platform. Argos' most advanced
product candidate, Rocapuldencel-T, is being evaluated in the
pivotal ADAPT Phase 3 clinical trial for the treatment of
metastatic renal cell carcinoma (mRCC). Argos is also developing a
separate Arcelis®-based product candidate, AGS-004, for the
treatment of human immunodeficiency virus (HIV), which is currently
being evaluated in combination with vorinostat, a latency-reversing
drug, in an investigator-initiated Phase 2 clinical trial aimed at
HIV eradication in adult patients. Funding for the development of
AGS-004 has been provided by the National Institutes of Health, the
National Institute of Allergy and Infectious Diseases, and the
Collaboratory of Research for AIDS Eradication.
Forward Looking Statements
Any statements in this press release about
Argos' future expectations, plans and prospects, including
statements about Argos’ cash resources and other financial results,
the clinical development of Argos' product candidates and other
statements containing the words "believes," "anticipates,"
"estimates," "expects," "intends," "plans," "predicts," "projects,"
"targets," "may," "potential," "will," "would," "could," "should,"
"continue," and similar expressions, constitute forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from
those indicated by such forward-looking statements as a result of
various important factors, including whether Argos' cash resources
will be sufficient to fund its continuing operations for the period
anticipated; whether preliminary or interim clinical data will be
indicative of the final data from a clinical trial; whether results
obtained in clinical trials will be indicative of results obtained
in future clinical trials; whether Argos' product candidates will
advance through the clinical trial process on a timely basis;
whether the results of such trials will warrant submission for
approval from the United States Food and Drug Administration or
equivalent foreign regulatory agencies; whether Argos' product
candidates will receive approval from regulatory agencies on a
timely basis or at all; whether, if product candidates obtain
approval, they will be successfully distributed and marketed;
whether Argos can successfully establish commercial manufacturing
operations on a timely basis or at all; and other factors discussed
in the "Risk Factors" section of Argos' Form 10-Q for the quarter
ended September 30, 2017, which is on file with the SEC, and in
other filings Argos makes with the SEC from time to time. In
addition, the forward-looking statements included in this press
release represent Argos' views as of the date hereof. Argos
anticipates that subsequent events and developments will cause
Argos' views to change. However, while Argos may elect to update
these forward-looking statements at some point in the future, Argos
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Argos' views as of any date subsequent to the date
hereof.
Investor contact: Richard Katz, MD, MBAChief
Financial Officer Argos Therapeutics, Inc. 919-287-6315
rkatz@argostherapeutics.com
Media Contact:Adam DaleyBerry & Company
Public Relations212.253.8881adaley@berrypr.com