Spectral Diagnostics Inc., has provided an update on a number of corporate and clinical activities.
On June 27, 2011, the Company mailed the management proxy circulars to its shareholders for a special meeting to be held on August 26, 2011.
At this meeting, shareholders will be asked to approve a plan of arrangement with Medwell Capital Corp. ("Medwell"), whereby Spectral will issue 33,333,333 common shares at a subscription price of $0.30 per share for a total financing of $10 million.
As part of the arrangement, Medwell will distribute approximately 54 million shares of Spectral directly to its shareholders, thereby reducing its ownership position from approximately 45% to just over 13%.
This transaction will provide the Company with sufficient funds to complete and expand its pivotal EUPHRATES trial, significantly increase its shareholder base, and provide an opportunity to increase the trading liquidity of its shares.
In addition, the Company has just received approval from the U.S. FDA to increase the total number of clinical sites in its EUPHRATES trial from the current 15, to a total of 30. International sites may now also be included in the trial.
"These two developments are very important for Spectral," said Dr. Paul Walker, President and CEO of Spectral Diagnostics.
Dr. Walker continued, "The increased number of sites gives us the capability and flexibility to better manage patient enrolment and meet our targeted timelines. We can also now add sites in Canada, where Spectral has the exclusive distribution rights for Toraymyxin, and expand clinical activities in Europe if we choose. The $10 million financing will provide the necessary funds for this expanded clinical development program, which is key to accessing a market opportunity for Toraymyxin in North America alone that is in excess of $1 billion."