InNexus Biotechnology Inc. - Private Placement Completion
October 07 2005 - 3:19PM
PR Newswire (US)
TSX.V: IXS OTC BB: IXSBF VANCOUVER, Oct. 7 /PRNewswire-FirstCall/
-- InNexus Biotechnology Inc. (the "Company") is pleased to
announce the completion of a private placement with institutional
investors led by SDS Capital of Greenwich, Connecticut. The funds
will allow InNexus to complete one or more monetized partnerships
for its SuperAntibody technology and initiate development of a lead
SuperAntibody therapeutic candidate. The private placement
consisted of 27,500 Units, each of which is comprised of 1 Series A
Convertible Preferred Share (a "Convertible Preferred Share") and
400 Warrants, at a price of $100.00 per Unit for gross proceeds of
$2,750,000. These proceeds include conversion of the principal
amount of $250,000 owing to one of the Placees under an outstanding
Bridge loan. Each Convertible Preferred Share will bear a
cumulative 8% dividend increasing to 12% in the third and
succeeding years and will be convertible, at the option of the
holder, for a period of five years into 400 common shares of the
Company. Each of the Warrants will entitle the holder to purchase
one additional common share of the Company at a price of $0.25 for
five years. The Company will have the right to redeem any
outstanding Convertible Preferred Share at a price of $120 per
share, plus any accrued but unpaid dividends, if after the fifth
anniversary from the date of issuance, or if prior to that date, at
a price of $100 per share, plus any accrued but unpaid dividends,
provided that the prevailing market price of the Company's common
shares is less than $0.25. The holder will have a "follow on"
conversion right for 20 days after notice of redemption at a price
of $0.25, if prior to the fifth anniversary after issuance, or if
after that date, at the market price, if such shares are issued
without a four month hold period or, at the discount to the market
price permitted under TSX-V rules, if issued with a four month hold
period. The common shares of the Company issuable upon conversion
of the Convertible Preferred Shares or which may be exercised upon
exercise of the Warrants comprising the Units will be subject to a
hold period expiring on January 31, 2006 (as to 23,665 Units),
February 4, 2006 (as to 3,245 Units) and February 5, 2006 (as to
590 Units). A finders fee equal to 8% of the gross proceeds of the
Placement plus 660,000 Warrants will be payable to E.B. Coxe &
Co. LLC. About InNexus InNexus is developing the next generation of
therapeutic, monoclonal antibodies using its SuperAntibody
Technology Platform. InNexus intends to apply this technology to
improve the potency of existing antibody products while opening new
markets and disease applications with other forms of
SuperAntibodies. InNexus will develop the technology through
partnerships with biotechnology and pharmaceutical companies while
pursuing development of its own products for unmet medical needs.
To learn more about InNexus please visit the Company's website:
http://www.innexusbiotech.com/ This news release contains certain
"forward-looking statements". These statements are not historical
facts and are subject to risks and uncertainties which could cause
actual results and the timing of certain events to differ
materially from those set forth in or implied herein including,
without limitation, risks associated with clinical development,
regulatory approvals, product commercialization, intellectual
property claims litigation and other risks associated with the
Company's proposed activities. On behalf of the Board of Directors
of InNexus Biotechnology Inc. "ALTON C. MORGAN" Dr. A. Charles
Morgan President and CEO Contacts Business Development: Investor
Relations: Telephone (toll-free): 1-877-990-8382 Toll-free:
1-866-990-8382 Email: The TSX Venture Exchange has neither approved
nor disapproved of the information contained herein. DATASOURCE:
InNexus Biotechnology, Inc. CONTACT: Business Development:
Telephone (toll-free): 1-877-990-8382, Email: ; Investor Relations:
Toll-free: 1-866-990-8382,
Copyright