Senesco Technologies Enters Into Agreements For Additional $700,000 In Financing
31 July 2009 - 6:01AM
PR Newswire (US)
NEW BRUNSWICK, N.J., July 30 /PRNewswire-FirstCall/ -- Senesco
Technologies, Inc. ("Senesco" or the "Company") (NYSE Amex: SNT)
today announced that, on July 29, 2009, the Company entered into
definitive purchase agreements with certain members of Senesco's
Board of Directors and certain accredited investors, including Cato
Holding Company, which is the venture capital affiliate of Cato
Research Ltd., a global contract research and development
organization currently assisting Senesco with its SNS-101
development program with the emphasis on initiating a Phase I
clinical trial for multiple myeloma. Pursuant to the respective
purchase agreements, Senesco will issue and sell (i) up to 783,332
shares of its common stock (the "Shares") at a price of $0.90 per
share, (ii) warrants to purchase an aggregate of up to 705,000
shares of common stock, which warrants are exercisable immediately
at an exercise price of $0.01 per share (the "Series A Warrants")
and (iii) warrants to purchase an aggregate of up to 714,794 shares
of common stock, which warrants are exercisable 6 months from the
date of issuance at an exercise price of $0.60 per share (the
"Series B Warrants"). In connection with the private placement, the
Company anticipates that it will receive aggregate proceeds,
excluding costs and expenses, in the amount of $530,000. In
addition, Cato Holding Company has agreed to cancel $175,000 of the
Company's indebtedness to Cato Research, Ltd., bringing the
proceeds of the offering, excluding costs and expenses, to
approximately $705,000. The closing of the foregoing transactions
is contingent upon Senesco receiving stockholder approval for
certain aspects of the transactions as well as other customary
closing conditions. There are no registration rights associated
with the securities to be issued and sold in the private placement
and no placement agent was used in connection with the private
placement. Senesco primarily intends to utilize the net proceeds of
these transactions to further advance its multiple myeloma research
and development program with the goal of initiating a Phase I
clinical trial. "We are excited by the potential of SNS-101 as a
novel treatment alternative for multiple myeloma," said Allen Cato,
MD, PhD, CEO of Cato Research. "Our recent investment reflects our
confidence in the Company's regulatory and development plans. We
look forward to significant progress in the months ahead." "We are
gratified by the confidence expressed in us by our CRO, the Board
members and accredited investors involved in this transaction,"
commented Joel Brooks, Chief Financial Officer. "This funding,
along with the $1 million in financing secured several weeks ago,
enables us to continue moving forward efficiently with our goal of
filing an Investigational New Drug Application and initiating a
Phase I clinical trial for SNS-01." Important Information This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state. The shares of common stock
have been sold pursuant to an exemption from state and federal
securities laws. In connection with the private placement, the
Company will prepare a proxy statement for the Company's
stockholders to be filed with the Securities and Exchange
Commission (the "SEC"). The proxy statement will contain
information about the Company, the private placement and related
matters. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT
CAREFULLY WHEN IT IS AVAILABLE, AS IT WILL CONTAIN IMPORTANT
INFORMATION THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING A
DECISION ABOUT APPROVING AN AMENDMENT TO THE COMPANY'S CERTIFICATE
OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED SHARES. In
addition to receiving the proxy statement from the Company by mail,
shareholders will be able to obtain the proxy statement, as well as
other filings containing information about the Company, without
charge, from the SEC's website (http://www.sec.gov/) or, without
charge, from the Company's website at http://www.senesco.com/ or by
directing such request to Senesco Technologies, Inc. 303 George
St., Suite 420, New Brunswick, New Jersey 08901 Attention: Joel
Brooks. The Company and its directors and executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies. Information concerning
the Company and its directors and executive officers is set forth
in the Company's proxy statement and Annual Report on Form 10-K
previously filed with the SEC. About Senesco Technologies, Inc.
Senesco Technologies, Inc. is a U.S. biotechnology company,
headquartered in New Brunswick, NJ. Senesco has initiated
preclinical research to trigger or delay cell death in mammals
(apoptosis) to determine if the technology is applicable in human
medicine. Accelerating apoptosis may have applications to
development of cancer treatments. Delaying apoptosis may have
applications to certain inflammatory and ischemic diseases. Senesco
takes its name from the scientific term for the aging of plant
cells: senescence. Delaying cell breakdown in plants extends
freshness after harvesting, while increasing crop yields, plant
size and resistance to environmental stress. The Company believes
that its technology can be used to develop superior strains of
crops without any modification other than delaying natural plant
senescence. Senesco has partnered with leading-edge companies
engaged in agricultural biotechnology and earns research and
development fees for applying its gene-regulating platform
technology to enhance its partners' products. Certain statements
included in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Actual results could differ materially from such
statements expressed or implied herein as a result of a variety of
factors, including, but not limited to: the Company's ability to
consummate this financing as well as additional financings; the
development of the Company's gene technology; the approval of the
Company's patent applications; the successful implementation of the
Company's research and development programs and joint ventures; the
success of the Company's license agreements; the acceptance by the
market of the Company's products; success of the Company's
preliminary studies and preclinical research; competition and the
timing of projects and trends in future operating performance, as
well as other factors expressed from time to time in the Company's
periodic filings with the SEC. As a result, this press release
should be read in conjunction with the Company's periodic filings
with the SEC. The forward-looking statements contained herein are
made only as of the date of this press release, and the Company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances. Company
Contact: Investor Relations Contact: Senesco Technologies, Inc. FD
Joel Brooks Brian Ritchie Chief Financial Officer (212) 850-5600
(732) 296-8400 Media Relations Contact: FD Irma Gomez-Dib (212)
850-5600 DATASOURCE: Senesco Technologies, Inc. CONTACT: Joel
Brooks, Chief Financial Officer, Senesco Technologies, Inc., (732)
296-8400, , or Investors, Brian Ritchie of FD, +1-212-850-5600, ,
or Media, Irma Gomez-Dib of FD, +1-212-850-5600, Web Site:
http://www.senesco.com/
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