Critical Outcome Technologies Inc. (TSX Venture: COT; OTCQB: COTQF) (“COTI” or the “Company”) announced today, the completion of a non‐brokered private placement of 4,841,102 units (the “Units”) at a price of CAD $0.30 per Unit for gross proceeds of USD $1,100,000 (or approximately CAD $1,437,150) with a successful U.S. life science investor.
“We were very pleased to attract this investment from the family offices of a successful U.S. life science investor with numerous academic, national, and international awards for leadership and contributions to the biopharmaceutical industry,” said Dr. Wayne Danter, President & Chief Executive Officer. “The investor’s understanding of p53 and COTI‐2’s potential clinical benefit for cancer patients led them to make this investment in the Company. We look forward to using their experience in drug development and in building successful biotech companies to assist us in advancing COTI‐2 through the clinical development process and growing a successful product pipeline. This funding, combined with the recently announced funding of approximately $1,450,000 from warrant exercises, and the potential for further warrant exercises in the next few months, has us well‐positioned to move COTI‐2 through the Phase 1 gynecologic trial and supports the development of additional clinical indications for COTI‐2 to add value to this asset.”
Each Unit consists of one common share and one half warrant of the Company. Each whole warrant is exercisable for one common share of the Company at an exercise price of CAD $0.38 per share for a period of 24 months from the date of issue. The expiration date of the warrants is subject to acceleration by the Company in certain circumstances. The common shares and warrants issued by the Company pursuant to the offering are subject to restrictions on resale in accordance with applicable Canadian and U.S. securities laws and the policies of the TSX Venture Exchange. In this regard, under Canadian securities laws, the common shares and warrants comprising the Units are subject to restrictions on resale expiring on July 31, 2016, as are any common shares issued upon the exercise of the warrants prior to the end of this restricted sale period. The offering is subject to final acceptance by the TSX Venture Exchange.
About Critical Outcome Technologies Inc.
COTI is a clinical stage biopharmaceutical company advancing the treatment of cancer through targeted therapeutics. The Company’s lead compound, COTI‐2, has a novel p53‐dependent mechanism of action with selective and potent anti‐cancer activity. The initial therapeutic indication is in gynecologic cancers, which includes ovarian, cervical, and endometrial cancers; a Phase 1 clinical trial began at MD Anderson Cancer Center in December 2015. The Company has secured orphan drug status for the Press Release Page | 2 ovarian indication in the U.S. and is planning additional studies in other cancer indications such as head and neck, Li‐Fraumeni Syndrome, and acute myelogenous leukemia, based upon more than ten animal xenograft models showing both single and combination agent activity of COTI‐2 with other leading cancer drugs. Preclinical data provides evidence to suggest a potentially dramatic change in the treatment of cancers with mutations of the p53 gene.