Tikcro Technologies Allocates $2.5 Million of Funding into BioCancell.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel -- Tikcro Technologies Ltd. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: TIKRF), today announced that it has signed an agreement to provide BioCancell Therapeutics, Inc., a clinical-stage biopharmaceutical company, with $2.5 million in funding to continue development and clinical trials of its drugs for the treatment of bladder, ovarian ovarian /ovar·i·an/ (o-var´e-an) pertaining to an ovary or ovaries. ovarian pertaining to an ovary. ovarian agenesis and pancreatic cancers pancreatic cancer Malignant tumour of the pancreas. Risk factors include smoking, a diet high in fat, exposure to certain industrial products, and diseases such as diabetes and chronic pancreatitis. Pancreatic cancer is more common in men. . Total funding in this round, together with other existing investors, will amount to approximately $3.7 million. BioCancell is focused on the development and commercialization of an innovative therapeutic molecular platform for treating aggressive cancers. The company's lead drug candidate for the treatment of bladder cancer bladder cancer Malignant tumour of the bladder. The most significant risk factor associated with bladder cancer is smoking. Exposure to chemicals called arylamines, which are used in the leather, rubber, printing, and textiles industries, is another risk factor. is currently in Phase II trials, while its ovarian and pancreatic cancer compounds are preparing to begin Phase I. Aviv Boim, Tikcro's Chief Executive Officer, commented, "We are impressed by the progress that BioCancell has made in moving its product into clinical trials. We believe that BioCancell's novel mechanism, target gene technology, holds great promise in managing certain difficult-to-treat cancers. We are excited by BioCancell's prospects and pleased to partner with the company in aiming to accelerate its development and to create value for our shareholders." Under the agreement, Tikcro will provide BioCancell with $2.5 million in funding at the closing. Of this amount, $2.0 million will be allocated to a four-year convertible note bearing interest at 10% per year and $0.5 million will be in the form of BioCancell common stock. In addition, Tikcro will receive a five-year warrant, for an aggregate exercise price of approximately $2.5 million. The common stock of BioCancell is listed on the Tel Aviv Stock Exchange Tel Aviv Stock Exchange Israel's only stock exchange. (TASE TASE Tel Aviv Stock Exchange TASE The All Seeing Eye TASE Tactical Air Support Element TASE Thrust Assessment Support Environment TASE Telecontrol Application Service Elements (IEC communications protocol) ) under the symbol BICL. The conversion and exercise prices of BioCancell's stock will be based on the average closing price of BioCancell's common stock on the TASE over the 60-day period preceding the closing date with about 25% premium. The common stock issuable to Tikcro will be subject to resale restrictions under applicable securities laws. BioCancell has undertaken steps to register such stock for resale. Initially, Tikcro will hold approximately 5% of the outstanding capital stock of BioCancell. If it converts the note in full it will hold approximately 20% of BioCancell's outstanding capital stock. Additionally, if it exercises its warrants in full, it will hold an aggregate of approximately 34% of BioCancell's outstanding capital stock. In connection with the agreement, Tikcro reached a voting agreement with current major shareholders, Clal Biotechnology Ltd. ("CBI CBI abbr. cumulative book index CBI Confederation of British Industry CBI n abbr (= Confederation of British Industry) → C.E.O.E. "), Prof. Abraham Hochberg, Biocancell's Co-Founder and Chief Scientific Officer and Avi Barak, its CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Subject to certain conditions, the parties to the agreement will vote for one member of the board designated by Tikcro, for one member designated by CBI and for one member designated by Prof. Hochberg. Tikcro will also provide general consulting services to BioCancell. The closing is subject to the approval of BioCancell's shareholders and other customary conditions. More information about BioCancell is available on its website at: www.biocancell.com. About Tikcro Technologies: Tikcro identifies potential technologies with a view to acquiring stakes in, and directing the development of, one or more operating companies operating company A business that engages in transactions with outsiders. in the technology area. Tikcro is headquartered in Tel Aviv, Israel. For more information, visit the Tikcro website at: www.tikcro.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain of the statements contained herein may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties including, but not limited to, risks that the transaction described in the press release will not be consummated and risks related to the operations of the Company's portfolio companies early stage nature of operations and the need to raise additional funds to support these operations, including BioCancell Therapeutics, Inc., an early stage pharmaceutical company active in the development and trial of target gene-based drugs for the treatment of bladder, ovarian and pancreatic cancer. Please see the risks and uncertainties set forth in the Company's SEC reports including the Company's Form 20-F. Actual results may materially differ. Results of operations in any past period should not be considered indicative of the results to be expected for future periods. We undertake no duty to update any forward-looking information. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion