Access Pharmaceuticals, Inc. Concludes First Closing of Planned $8 Million Private Placement
- Completes Merger with Virologix Corporation -
- Will Expand Board of Directors from 5 to 8 -
DALLAS, July 21 /PRNewswire/ -- Access Pharmaceuticals, Inc. (OTC Bulletin Board: AXCS) ("Access") today announced that it has concluded the first closing of a planned financing for up to $8 million.
In this first closing Access raised gross proceeds of approximately $3.0 million through the sale of 1,500,000 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.
In connection with the financing, Access will add three new members to its Board of Directors, increasing the number of Board members from five to eight. Joining the Board are Howard Milstein, a prominent New York developer and financier, Richard B. Stone and Preston Tsao, both Managing Directors at Sunrise Securities Corp. Howard Milstein's group and Richard Stone invested in this financing and are the Company's largest stockholders.
Commenting on the Private Placement, Kerry P. Gray, President and CEO of Access, stated, "We appreciate Howard Milstein and Richard Stone's participation in this round and look forward to their contribution to the Company's growth. Access will have four programs in pivotal or Phase III studies in the next 12 months including a study of amlexanox for the treatment of mucositis, a severe condition affecting approximately 400,000 cancer patients in the United States each year. The funds from this placement will be instrumental in expeditiously completing those trials."
The Company further noted that concurrent with the closing, it has completed its previously announced acquisition of Virologix Corporation, a private company developing treatments for HIV and other viral diseases.
Mr. Gray continued, "The acquisition of Virologix brings to Access a totally new approach to HIV, with a drug candidate which has significant potential comparable to that of other AIDS treatments."
Access Pharmaceuticals, Inc. is an emerging pharmaceutical company focused on developing both novel low development risk product candidates and technologies with longer-term major product opportunities. In conjunction with Block Drug Company, Access has developed Aphthasol(TM), the only FDA- approved product for the treatment of canker sores, and is developing amlexanox for mucositis. Access is currently developing a unique polymer platinate for use in the treatment of cancer and is developing in conjunction with its partner Strakan, Ltd., ResiDerm(TM) a topical zinc delivery system that provides rapid delivery and reservoir of a drug in the skin. |
