Adherex Technologies Closes on $6.5 Million in New Financing
Posted May 11, 2006 10:47 a.m. EDT
RESEARCH TRIANGLE PARK, N.C. — Adherex Technologies
, a developer of oncology products, has closed on $6.5 million in new financing.
Among the investors is Quintiles Transnational. The RTP-based firm made the investment through its partnership group, which has been renamed as NovaQuest.
Adherex (Amex: ADH) issued 7,752,853 units at a purchase price of 84 cents each to the investors. Each unit includes one common share and .30 percent of a common share purchase warrant. Whole warrants can be exercised at a price of 97 cents over a period of four years.
Adherex shares traded at 92 cents, up 2 cents, in mid-day trading Thursday.
"This financing will help us maintain the momentum we've achieved in the development of ADH-1 and eniluracil by providing important additional resources and brings new, high quality investors such as Quintiles PharmaBio Development to our company," said William Peters, chairman and chief executive officer of Adherex.
ADH-1, which is called Exherin, targets a protein found in certain tumor cells and blood vessels that feed solid tumors. Eniluracil, which tracks oncology indicators, was licensed from GlaxoSmithKline.
The funds will be used to support operates and further research and development, the company said.