Allon Therapeutics Arranges $6.2 million Financing
http://www.allontherapeutics.com
Vancouver, BC, August 15, 2005--(T-Net)--Allon Therapeutics Inc. announced that it has arranged a $6.2-million private placement of common shares to a group of largely institutional investors at a price of $1.05 per share. The placement funds have been received and closing is expected in the immediate future upon formal TSX Venture Exchange acceptance.
Gordon McCauley, President and CEO of Allon, said the placement proceeds will be used to fund the ongoing clinical development of the Company's two clinical stage products, including AL-108, now being evaluated in Phase I trials as a treatment for Alzheimer's disease, and AL-208, about to start Phase I trials as a treatment for mild cognitive impairment (MCI) associated with cardiac artery bypass graft (CABG) surgery.
"This financing is important because it allows Allon to accelerate the clinical development momentum built over the last year," said McCauley. "We are now in the enviable position of having the financial resources to undertake Phase IIa clinical trials for both of our lead products, and increasing our opportunities to demonstrate success with this class of compounds."
Allon's broad class of neuroprotective compounds has been extensively validated in numerous models of neurodegenerative conditions such as Alzheimer's disease, stroke, traumatic brain injury, multiple sclerosis and neuropathy. These extensive data represent a solid foundation for the existing human clinical trials in Alzheimer's disease and MCI post-CABG, as well as a variety of other potential indications. These diseases, disorders and injuries represent large markets for which there are no disease-modifying treatments. For example, MCI post-CABG is a $3 billion market for which there is no available treatment today.
As part of the consideration for the shares approximately 2.6 million of the Company's four million warrants outstanding were redeemed for $0.05 each. No commissions are payable in connection with the placement. The shares purchased will be subject to a four-month hold period from the date of closing.
The TSX Venture Exchange has neither approved nor reviewed the contents of this press release.
For further information
Investor contact: Gordon McCauley, President & CEO, Allon Therapeutics Inc., P: (604) 736-0634, C: (604) 218-4742, E: gmccauley@allontherapeutics.com
Media contact: Maria LoScerbo, C: (604) 732-6221, E: mloscerbo@allontherapeutics.com