After signing up, you'll start to receive regular news updates from us.
Critical Outcome Technologies Completes Financing
Complete the form below to unlock access to ALL audio articles.
Critical Outcome Technologies Inc. has announced that it completed the first tranche of a non-brokered private placement and issued 8,152,500 units at a price of $0.16 per Unit for gross proceeds of $1,304,400. The second tranche of the private placement is expected to close by the end of March 2011.
Each Unit consists of one common share and one warrant of the Corporation. Each warrant is exercisable into one common share of the Corporation at an exercise price of $0.30 per share for a period of 18 months from the date of issue.
The Corporation paid finders' fees to arm's length third parties in connection with this tranche of the private placement in the aggregate amount of $61,680 in cash and issued an aggregate of 385,500 compensation warrants. Each compensation warrant is exercisable into one common share of the Corporation for a period of 18 months from the date of issue at an exercise price of $0.30 per share.
The securities issued by the Corporation under the private placement are subject to restrictions on resale in accordance with applicable securities laws and the policies of the TSX Venture Exchange, which expire on July 26, 2011.
The private placement and finder's fees are subject to final regulatory approval.
"We are very pleased to have secured this financing which strengthens our balance sheet," said John Drake, Chairman of the Board.
Drake continued, "We intend to use the net proceeds of the offering to achieve specific developmental milestones for our lead compound, COTI-2. These milestones consist of finalizing the optimal oral formulation, completing an Akt pharmacodynamics animal study and the completion of a 28 day GLP toxicity study that is part of the final series of studies required for filing an investigational new drug application with the U.S. Food and Drug Administration. The data generated from these experiments is intended to address risk reduction points identified by potential licensees. Consequently, this will be a key value building inflection point for the compound."
Funds will also be used by COTI for moving its acute myelogenous leukemia project forward and for continued research and development of its drug candidate pipeline, for general corporate purposes and for working capital.
