ChemGenex Completes Capital Raising, Announces Rights Issue
09 April 2009 - 8:00PM
Business Wire
ChemGenex Pharmaceuticals Limited (ChemGenex) (ASX:CXS)
(NASDAQ:CXSP) is pleased to announce the successful completion of a
private placement to sophisticated and institutional investors in
Australia and internationally to raise A$10 million.
ChemGenex placed 23,255,814 fully paid ordinary shares in the
Company at an issue price of A$0.43 per share to raise gross
proceeds of A$10 million.
In addition to the placement, ChemGenex intends to offer
eligible ChemGenex shareholders the opportunity to participate in a
non-renounceable rights issue to acquire 1 new share for every 14
shares held to be issued at the same price as the placement, being
A$0.43 per share, to raise up to an additional A$7.4 million.
The terms and conditions of the rights issue, along with the key
dates for participants will be announced in due course.
The placement was anchored by substantial commitments from
existing significant shareholders including GBS Venture Partners,
the international pharmaceutical company Merck Serono, and Orbis
Funds Management. The current investment will make Orbis Fund
Management a substantial shareholder in the company.
The aggregate raising of a potential A$17.4 million will be
applied to:
- complete the clinical
development of omacetaxine in T315I positive CML;
- complete the regulatory filings
in the USA and Europe for omacetaxine in T315I positive CML;
- progress pre-commercialization
and partnering discussions concerning omacetaxine; and
- prepare for the commercial
launch of omacetaxine in the United States.
�We are delighted to have completed this capital raising in a
difficult financial climate, and look forward to further
consolidating our financial position through the rights issue,�
said Greg Collier, Ph.D., Chief Executive Officer and Managing
Director. �We look forward to completing the regulatory submissions
for omacetaxine in the US and Europe over the coming months, and to
preparing for the commercial launch of omacetaxine.�
ChemGenex anticipates immediate resumption of trading on ASX
effective from market open on 9 April 2009.
ABN AMRO Morgans Corporate Limited acted as Manager to the
placement and has agreed to act as Lead Manager for the rights
issue.
An updated corporate presentation is available at the company�s
website
(http://www.chemgenex.com/wt/page/presentation_archive).
About ChemGenex Pharmaceuticals Limited
(http://www.chemgenex.com)
ChemGenex Pharmaceuticals is a pharmaceutical development
company dedicated to improving the lives of patients by developing
personalized oncology medicines. ChemGenex harnesses the power of
genomics both to discover novel targets and drug compounds, and in
clinical trials to develop more individualized treatment outcomes.
ChemGenex�s lead compound, omacetaxine mepesuccinate, is currently
in phase 2/3 clinical trials for chronic myeloid leukemia (CML).
ChemGenex has a second anticancer compound, amonafide
dihydrochloride (Quinamed�) which is in phase 2 clinical
development for various solid cancers, and a portfolio of assets in
pre-clinical development. ChemGenex currently trades on the
Australian Stock Exchange under the symbol "CXS" and on NASDAQ
under the symbol "CXSP". For additional information on ChemGenex
Pharmaceuticals, please visit our web site at
http://www.chemgenex.com.
Details on the clinical trials can be accessed from the
following websites;
http://clinicaltrials.gov/ct2/show/NCT00375219?term=homoharringtonine&rank=9
and http://www.tkiresistantcmltrials.com
Safe Harbor Statement
Certain statements made herein (including for this purpose sites
to which a hyperlink has been provided) that use the words
�estimate�, �project�, �intend�, �expect�, �believe� and similar
expressions are intended to identify forward-looking statements
within the meaning of the US Private Securities Litigation Reform
Act of 1995. These forward-looking statements involve known and
unknown risks and uncertainties which could cause the actual
results, performance or achievements of the company to be
materially different from those which may be expressed or implied
by such statements, including, among others, risks or uncertainties
associated with the development of the company�s technology, the
ability to successfully market products in the clinical pipeline,
the ability to advance promising therapeutics through clinical
trials, the ability to establish our fully integrated technologies,
the ability to enter into additional collaborations and strategic
alliances and expand current collaborations and obtain milestone
payments, the suitability of internally discovered genes for drug
development, the ability of the company to meet its financial
requirements, the ability of the company to protect its proprietary
technology, potential limitations on the company�s technology, the
market for the company�s products, government regulation in
Australia and the United States, changes in tax and other laws,
changes in competition and the loss of key personnel. These
statements are based on our management�s current expectations and
are subject to a number of uncertainties that could change the
results described in the forward-looking statements. Investors
should be aware that there are no assurances that results will not
differ from those projected.
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