Xenetic Biosciences Completes $3,000,000 Bridge Note Financing
(Thomson Reuters ONE) -
LEXINGTON, Mass., July 08, 2015 (GLOBE NEWSWIRE) -- Xenetic Biosciences, Inc.
("Xenetic" or the "Company") (OTCQB:XBIO), a biopharmaceutical company focused
on developing next-generation biologic drugs and novel orphan oncology
therapeutics, today announced that it has completed a $3,000,000 bridge note
financing. The financing was concluded with OJSC Pharmsynthez ("Pharmsynthez"),
a collaborative partner of Xenetic and an affiliate of Xenetic's largest
shareholder SynBio LLC ("Synbio") and was arranged directly between the
managements of Xenetic and Pharmsynthez on a commission free basis.
The $3,000,000 was received from the sale of a ten percent (10%) senior secured
collateralized convertible promissory note due July 1, 2016 (the "Note"). The
Note is convertible, in whole or in part, into shares of Common Stock of the
Company at the option of Pharmsynthez. In addition, in connection with the sale
of the Note, Pharmsynthez received certain five year warrants to purchase shares
of Common Stock of the Company. Please refer to SEC form 8-K filed on July
8, 2015 for further material information regarding the bridge note financing.
"We are very pleased to have completed this important bridge note financing with
a company that has been associated with Xenetic for fifteen years," said Scott
Maguire, Chief Executive Officer of Xenetic. "Pharmsynthez is an important
collaborator with Xenetic. The partnership covers six drug candidates currently
in development in Russia which include indications for cystic fibrosis and
obesity with the intention that the Company will eventually seek approval of
these drug candidates in the global markets."
"These funds will allow us to continue with our plan to seek a listing of the
Company's shares on a national U.S. securities exchange that offers greater
liquidity and will allow Xenetic to trade alongside its peers, therefore
allowing greater exposure to the life science investment community. We believe
that this financing, which was concluded with an affiliate of our single largest
shareholder, reflects a belief in the potential of the Company's core
technologies. Our primary focus remains to improve the human condition by
developing and offering safer and more effective treatments via the development
of our portfolio of proprietary products. We are looking forward to the future
with great confidence."
About Xenetic Biosciences
Xenetic Biosciences is a biopharmaceutical company developing next-generation
biologic drugs and novel oncology therapeutics. Xenetic's proprietary drug
technology platforms include PolyXen®, designed to develop next generation
biologic drugs by extending the efficacy, safety and half-life of biologic drugs
and OncoHist® for the development of novel oncology drugs focused on orphan
indications.
Xenetic's lead product candidates include ErepoXen®, a polysialylated form of
erythropoietin (EPO) for the treatment of anemia in pre-dialysis patients with
chronic kidney disease, and OncoHist®, a novel recombinant human histone H1.3
molecule for the treatment of refractory Acute Myeloid Leukemia (AML) with
potential to treat numerous other cancer indications. Xenetic is collaborating
with Russian-based OJSC Pharmsynthez (who is an affiliate of a significant
shareholder in Xenetic) and the Serum Institute of India to test additional drug
and vaccine candidates and to de-risk the development process with clinical data
generated in Russia and India before Xenetic takes these candidates into the
clinic in the Western markets.
Xenetic is also developing a broad pipeline of clinical candidates for next
generation biologics and novel oncology therapeutics in a number of orphan
disease indications. For more information, please visit the company's website
atwww.xeneticbio.com.
Baxter Healthcare:
Xenetic is working together with Baxter International Inc. to develop a novel
series of polysialylated blood coagulation factors, including a next generation
Factor VIII. This collaboration relies on the PolyXen technology to conjugate
PSA to therapeutic blood-clotting factors, with the goal of improving the
pharmacokinetic profile and extending the active life of these biologic
molecules. Baxter is one of the Company's largest shareholders having invested
in a number of rounds with the most recent investment of $10M last year. The
agreement is exclusive research, development and license agreement grants Baxter
a worldwide, exclusive, royalty-bearing license to Xenetic's PSA patented and
proprietary technology in combination with Baxter's proprietary molecules
designed for the treatment of blood and bleeding disorders. Under the agreement,
Xenetic may receive regulatory and sales target receipts for total potential
milestones of up to $100 million plus royalties on sales.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including but not limited to,
the potential safety, tolerability and efficacy of our product candidates and
the advancement of our clinical trials. Forward-looking statements can be
identified by terminology such as "anticipate," "believe," "could," "could
increase the likelihood," "estimate," "expect," "intend," "is planned," "may,"
"should," "will," "will enable," "would be expected," "designed to," "look
forward," "may provide," "would" or similar terms, variations of such terms or
the negative of those terms. Any forward-looking statements in this press
release are based on management's current expectations of future events and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially and adversely from those set forth in or implied by such
forward-looking statements. These risks and uncertainties include, but are not
limited to, the risk of cessation or delay of any of the ongoing or planned
clinical trials and/or our development of our product candidates, the risk that
the results of previously conducted studies involving similar product candidates
will not be repeated or observed in ongoing or future studies involving current
product candidates, the risk that our collaboration with Baxter will not
continue or will not be successful, and the risk that any one or more of our
product candidates will not be successfully developed and commercialized. For a
discussion of other risks and uncertainties, and other important factors, any of
which could cause our actual results to differ from those contained in the
forward-looking statements, see the section entitled "Risk Factors" in our
Annual Report on Form 10-K, as well as discussions of potential risks,
uncertainties, and other important factors in our subsequent filings with the
Securities and Exchange Commission. All information in this press release is as
of the date of the release, and Xenetic undertakes no duty to update this
information unless required by law.
Contact:
Xenetic Biosciences Inc.
www.xeneticbio.com
M. Scott Maguire, Chief Executive Officer
781 778 7720
j.mccusker(at)xeneticbio.com
UK/European contact:
Arlington Group Asset Management Limited
Ross Ainger
+44 (0)207 389 5012
rainger(at)agam.co.uk
Walbrook PR
Mike Wort
+44 (0)20 7933 8780
mike.wort(at)walbrookpr.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Xenetic Biosciences, Inc. via GlobeNewswire
[HUG#1935756]
Unternehmensinformation / Kurzprofil:
Datum: 08.07.2015 - 18:53 Uhr
Sprache: Deutsch
News-ID 405556
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