Updated on 6 June 2012
The funding will be used to accelerate the company's clinical trial programs
Singapore: Canada-based Quest PharmaTech, a pharmaceutical company developing and commercializing products for the treatment of cancer, has signed an investment agreement worth $8 million to primarily support the company's clinical trial programs.
Quest has signed an investment agreement with parties from South Korea to provide up to $8 million over the next 12 months to fund the company's clinical trial programs and for operational expenditures, in return for the issuance of up to 15 million common shares and undisclosed terms associated with successful commercialization.
The funding is to be used to accelerate the company's ongoing Italian and pending US oregovomab clinical trial, and to re-initiate the anti-MUC1 clinical trial program. As the shares to be issued may create a control person (an investor holding greater than 20 percent of Quest's shares), shareholder approval will be sought for the investment arrangement at Quest's upcoming AGM to be held on July 26, 2012.
In the interim, Quest has received a $500,000 interest free loan from Mr Gi Ho Park, an insider of Quest. As funding under the $8 million investment arrangement is received, Quest will repay the $500,000 bridge loan, or the amount could be converted into Quest's common shares.