Access Pharmaceuticals, Inc. Announces Closing of Private Placement Funding and Implementation of Reverse Stock Split
DALLAS--(BW HealthWire)--June 18, 1998--Access Pharmaceuticals, Inc. (OTC/BULLETIN BOARD:AXCS) today announced that it has concluded the first closing of a planned financing for up to $7.8 million. Sunrise Securities Corp. is the placement agent for this offering.
In this first closing Access raised approximately $2.9 million through the sale of 950,000 shares of common stock. The shares issued in the Private Placement have not been registered, however, the company has agreed to file a registration statement covering such shares within 30 days of the final closing.
Immediately prior to this financing, the Company implemented a 1-for-20 reverse stock split, previously approved by shareholders on April 14, 1998. The reverse split will take effect and the shares will begin trading on a post-split basis at the opening of business on Thursday, June 18, 1998. For 30 calendar days, the OTC Bulletin Board will attach the letter "D" to the Company's ticker symbol, which will become "AXCSD." The symbol will revert back to "AXCS" beginning on July 20, 1998.
With completion of the reverse split and the first closing of the Private Placement financing, the Company will have approximately 3.1 million common shares outstanding. Shareholders will be notified by the American Stock Transfer & Trust Company, Access' stock transfer agent, regarding the process for receiving new share certificates.
The funds from the Private Placement will be used principally for product development activities. These activities are focused on the advancement of the Polymer Platinate AP 5070 into clinical development, developing new dosage forms and line extensions of the approved product amlexanox and developing product candidates from our advanced drug delivery platforms.
Management believes that securing the necessary funding to advance product candidates into clinical development and implementing the reverse stock split will enable the Company to apply to the NASDAQ for a listing on the SmallCap Market, or alternate exchange listing, thereby increasing investor awareness of Access and its potential. The Company believes that a NASDAQ or exchange listing will position Access more attractively with the investment community, which generally has restrictions on investing in unlisted companies.
Commenting on the Private Placement Kerry P. Gray, President and CEO of Access, stated, "We are pleased with the progress of the technology development. By raising this initial portion of the funding to support operations for approximately 24-months, in conjunction with our development partners, it is anticipated that up to four clinical developments programs will be initiated during this period. These activities together with revenues projected from amlexanox, the FDA approved product, are expected to assist the Company to achieve its objective of near-term profitability."
Gray continued, "The reverse split brings the number of shares outstanding and the share price to a level more consistent with companies of our size and stage of development. Finalizing the financing and applying for a listing on NASDAQ or an exchange are important components of our plans to maximize shareholder value." |
