WALTHAM, Mass., Oct. 31 /PRNewswire/ -- AltaRex Corp. (AXO.TO, ALXFF.OTC),
today announced it has closed a previously announced private placement of 7.2
million Special Units at a price of C$1.75 per unit, resulting in gross
proceeds to the Company of C$12.6 million. The net proceeds of the offering
will be used for the continued funding of OvaRex(R) MAb, which is in
late-stage clinical development for the treatment of ovarian cancer, and for
working capital purposes.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
The financing was led by Yorkton Securities Inc. and the syndicate
included Wells Fargo Van Kasper. Each Special Unit entitles the holder to
acquire, for no additional consideration, one common share of the Company and
one warrant. Each warrant is exercisable at a price of C$2.00 into one common
share of the Company for a period of 24 months. Twenty-five percent of the
gross proceeds, net of agents fees and expenses, have been deposited in
escrow. In the event that the Company does not obtain a receipt for a
prospectus qualifying the distribution of common shares and warrants upon
exercise of the Special Units prior to January 29, 2002, such proceeds will be
used by the Company to repurchase up to twenty-five percent of the Special
Units, if holders so elect.
The warrants and the common shares issuable upon exercise of the Special
Units and the common shares issuable upon exercise of the warrants have not
been and will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or applicable exemption from registration requirements.
More about AltaRex Corp. can be found on the website http://www.altarex.com.
This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. For this purpose, any statements that are contained
herein that are not statements of historical fact may be deemed to be forward-
looking statements. Without limiting the foregoing, the words "believes,"
"anticipates," "plans," "intends," "expects" and similar expressions are
intended to identify forward-looking statements. Such risks and uncertainties
include, but are not limited to our need for capital and the risk that the
Company can not raise funds on a timely basis on satisfactory terms or at all,
changing market conditions, uncertainties regarding the timely and successful
completion of clinical trials, patient enrollment rates, uncertainty of pre-
clinical, retrospective, early and interim clinical trial results, which may
not be indicative of results that will be obtained in ongoing or future
clinical trials, whether the Company will file for regulatory approval on a
timely basis, uncertainties as to when, if at all, the FDA will approve the
Company's regulatory filings for its products, the need to establish and
scale-up manufacturing processes, the need to obtain and maintain corporate
alliances, uncertainty as to the timely development and market acceptance of
the Company's products, uncertainty as to whether patents will issue from
pending patent applications and, if issued, as to whether such patents will be
sufficiently broad to protect the Company's technology, and other risks
detailed from time-to-time in the Company's filings with the United States
Securities and Exchange Commission and Canadian securities authorities.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN
SOURCE AltaRex Corp.
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Related links:
http://www.altarex.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call:
http://www.prnewswire.com/comp/128163.html
CONTACT:
Sondra Henrichon, Director, Investor
Relations and Corporate Communications of AltaRex Corp.,
+1-781-672-0138, ext. 1510, or shenrichon@altarex.com; or Wayne
Hendry, Investor Relations of The Equicom Group Inc.,
+1-416-815-0700, ext. 238, or whendry@equicomgroup.com
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