Quest PharmaTech receives $8 million investment for oregovomab trials
Quest PharmaTech, an Alberta-based biotech developing and commercializing products for the treatment of cancer, has received an $8 million investment from parties of South Korea to support its clinical trial programs.
The investment agreement, which ensures funding for the next 12 months, will be used to accelerate the Quest’s ongoing Italian and pending U.S. oregovomab clinical trial, and to re-initiate the anti-MUC1 clinical trial program. Oregovomab is a high affinity monoclonal antibody for the treatment of advanced ovarian cancer that targets the circulating tumor associated antigen CA125.
The agreement also issues up to 15,000,000 common shares to the South Korean parties and undisclosed terms associated with successful commercialization. As the shares to be issued may create a “control person” (an investor holding greater than 20% 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 meantime, Quest has received a $500,000 interest free loan from 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 at the higher of $0.40 per share or the market price of Quest's common shares at the time of conversion, less than a 10% discount.
The issuance of Quest common shares will be subject to TSX Venture Exchange approval.