GenSpera Announces $5 Million in Private Financing
SAN ANTONIO--(BUSINESS WIRE)-- GenSpera, Inc. (OTCBB:GNSZ) announced today it has entered into subscription agreements with accredited investors and qualified institutional buyers totaling approximately $5 million, in which the purchasers are acquiring 3,333,373 units for $1.50 per unit. GenSpera expects this offering to close on Monday, August 19, 2013. T.R. Winston & Company, LLC acted as Placement Agent for the offering.
"We intend to use these funds primarily to carry our G-202 Phase II hepatocellular carcinoma trial through to completion, which if successful, will position GenSpera well for partnering discussions and further development of G-202," said Craig Dionne, PhD, GenSpera CEO and President.
Each unit consists of: (i) one share of the company's common stock, and (ii) one common stock purchase warrant. The warrants have a term of 5 years and an exercise price of $1.75 per share. In connection with the transaction, the company also entered into registration rights agreements with the investors. Pursuant to the registration rights agreement, the company has agreed to register the common shares and the shares underlying the common stock purchase warrants. The registration rights agreement also provides for certain penalties in the event the company fails to file an initial registration statement, or the registration statement is not declared effective, within a specific time.
This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of GenSpera, Inc., nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
GenSpera's technology platform combines a powerful, plant-derived cytotoxin (thapsigargin) with a prodrug delivery system that provides for the targeted release of drug candidates within a tumor. Unlike standard chemotherapeutic agents, thapsigargin's mechanism of action results in cell death, irrespective of the rate of cell division, which may provide an effective approach to kill both fast- and slow-growing cancers. GenSpera's lead drug candidate, G-202, is activated by the enzyme PSMA which is found at high levels in liver cancer and in the vasculature of many other solid tumor types.
Data from the G-202 Phase Ib program in solid tumor patients demonstrated that G-202 is well-tolerated with prolonged disease stabilization observed in several hepatocellular carcinoma (liver cancer) patients whose disease had previously worsened on standard therapy. A Phase II clinical trial in patients with hepatocellular carcinoma is currently underway.
For more information, please visit the Company's website: www.genspera.com or follow us on Twitter @GenSperaNews.
Cautionary Statement Regarding Forward Looking Information
This news release may contain forward-looking statements. Investors are cautioned that such forward-looking statements in this press release regarding potential applications of GenSpera's technologies constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties will be detailed from time to time in GenSpera's periodic reports filed with the Securities and Exchange Commission.
Craig Dionne, 210-479-8112
Deanne Eagle, 917-837-5866
KEYWORDS: United States North America Texas
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