LONDON, ONTARIO and BOSTON, MASSACHUSETTS--(Marketwired - Oct. 18, 2017) - Critical Outcome Technologies Inc. (TSX VENTURE:COT)(OTCQB:COTQF) ("COTI" or the "Company"), a clinical stage biopharmaceutical company advancing a pipeline of targeted therapies for the treatment of cancer, today announced the closing of the second tranche of a $2 million non-brokered private placement announced September 20, 2017. In the second tranche, the Company issued 482,686 units (the "Units") at a price of CAD $1.16 per Unit, for additional gross proceeds of approximately CAD $560,000 and aggregate gross proceeds of CAD $2,054,504. COTI plans to use the net proceeds from this private placement to support the progression of its Phase 1 clinical trial of COTI-2 in head and neck squamous cell carcinoma (HNSCC), to continue the analysis of the recently completed dose escalation portion of its Phase 1 clinical trial of COTI-2 in gynecological malignancies, and to support the preclinical development of COTI-219, its novel, small molecule compound that targets mutant forms of KRAS.
"The funds raised in this tranche further strengthen our balance sheet, and provide additional capital to advance our primary corporate objective of progressing our Phase 1 clinical programs, executing on our strategic initiative to broaden the indication scope for COTI-2," said Alison Silva, President and CEO. "We are pleased to have attracted new investors, who represented about a quarter of the private placement, and thank all of our shareholders for their continued support of the Company. We believe COTI-2 has the potential to meaningfully impact the treatment paradigm for patients with p53-driven malignancies, and we look forward to reporting secondary and exploratory endpoint data from the gynecological arm of the Phase 1 clinical trial of COTI-2 by year-end 2017, and top-line data from the HNSCC expansion arm in 2018."
Each unit consisted of one common share and one common share purchase warrant (each, a "Warrant") of the Company. Each Warrant is exercisable for one common share of the Company at an exercise price of $1.21 CAD per share for a period of 12 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 private placement 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 in this tranche are subject to restrictions on resale expiring on February 18, 2018, 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.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities or a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
About Critical Outcome Technologies Inc.
COTI is a clinical stage biotech company that uses proprietary artificial intelligence technologies to pursue a targeted and transformational approach to treating cancer and other unmet medical needs. COTI's CHEMSAS® technology accelerates the discovery and development of novel drug therapies, allowing the Company to build a pipeline of potential drug candidates faster and with a higher probability of success than traditional methods.
The Company's lead compound, COTI-2, has a novel p53-dependent mechanism of action with selective and potent anti-cancer activity. P53 mutations occur in over 50% of all cancers. COTI-2 is initially being evaluated for the treatment of gynecologic cancers and head and neck squamous cell carcinoma in a Phase 1 clinical trial at the MD Anderson Cancer Center at the University of Texas and the Lurie Cancer Center at Northwestern University. The Company has secured orphan drug status in the United States for COTI-2 for the treatment of ovarian cancer. Preclinical data suggests that COTI-2 could dramatically improve the treatment of cancers with mutations in the p53 gene.
The Company's second lead compound, COTI-219, is a novel oral small molecule compound targeting the mutant forms of KRAS without inhibiting normal KRAS function. KRAS mutations occur in up to 30% of all cancers and represent a tremendous unmet clinical need and a desirable drug target. COTI-219 is undergoing IND-enabling studies to support a regulatory submission in early 2018.
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For more information, visit www.criticaloutcome.com.
Notice to Readers:
Information contained in this press release may contain certain statements which constitute "forward- looking statements" as such term is defined under applicable securities laws. For example, the statements "COTI plans to use the net proceeds from this private placement to support the progression of its Phase 1 clinical trial of COTI-2 in head and neck squamous cell carcinoma (HNSCC), to continue the analysis of the recently completed dose escalation portion of its Phase 1 clinical trial of COTI-2 in gynecological malignancies, and to support the preclinical development of COTI-219, its novel, small molecule compound that targets mutant forms of KRAS" and "We believe COTI-2 has the potential to meaningfully impact the treatment paradigm for patients with p53-driven malignancies, and we look forward to reporting secondary and exploratory endpoint data from the gynecological arm of the Phase 1 clinical trial of COTI-2 by year-end 2017, and top-line data from the HNSCC expansion arm in 2018" are forward-looking statements. Forward‐looking statements by their nature are not guarantees of future performance and are based upon management's current expectations, estimates, projections and assumptions. COTI operates in a highly competitive environment that involves significant risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward‐looking statements. Management of COTI considers the assumptions on which these forward‐looking statements are based to be reasonable, but as a result of the many risk factors, cautions the reader that actual results could differ materially from those expressed or implied in these forward-looking statements. Information in this press release should be considered accurate only as of the date of the release and may be superseded by more recent information disclosed in later press releases, filings with the securities regulatory authorities or otherwise.
Contact Information:
President and CEO
1-800-798-8680
asilva@criticaloutcome.com
www.criticaloutcome.com