Bioasis Announces Proposed Private Placement

Bioasis Announces Proposed Private Placement
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BIOASIS TECHNOLOGIES INC., a pre-clinical, research-stage biopharmaceutical company developing its proprietary xB3 TM platform technology for the delivery of therapeutics across the blood-brain barrier (“BBB”) and the treatment of central nervous system (“CNS”) disorders in areas of high unmet medical need, including brain cancers and neurodegenerative diseases, today announced that it intends to complete a brokered private placement financing (the “Offering”) of units (the “Units”) for gross proceeds of approximately US$4 million.

Each Unit will consist of one common share of the company (a “Common Share”) and one warrant to purchase one Common Share (a “Warrant”) offered at CA$0.225, a 20% discount to the volume weighted average price per share of the company’s common shares on the TSXV over the 20 trading day period ending on September 20, 2019. Each Warrant will have a five year term and an exercise price equal to 120% of the Offering Price.

Boustead Securities, LLC are acting as the placement agent for U.S. investors participating in the Offering on a “best efforts” basis. The Agents will be paid a cash commission equal to 8% of the gross proceeds from the Offering and will also be issued broker warrants to purchase that number of Common Shares equal to 8% of the total number of Units sold in the Offering at a price equal to the Offering Price for a period of three years from the closing date of the Offering.

An initial closing of the Offering is expected to occur on or before September 27, 2019 and is subject to the satisfaction of waiver of certain conditions, including the delivery of definitive subscription agreements and TSX Venture Exchange approval. All the securities issued pursuant to the Offering will be subject to a hold period in Canada expiring four months and a day after the closing date and will be restricted securities for the purposes of United States securities laws.

The company intends to use the net proceeds from the Offering for manufacturing, IND enabling studies, legal expenses (including for patent and other intellectual property work) and for general working capital purposes.

“This financing will provide additional support to Bioasis as we progress xB3-001 as a treatment for HER2+ breast cancer and brain metastases. It follows the positive response we received from the FDA to our recent pre-IND submission and recognizes the strength of the company’s intellectual property covering xB3-001,” said executive chair Deborah Rathjen, Ph.D.

“We believe that xB3-001, an xB3-Herceptin construct, may be an effective treatment for HER2+ brain metastases with the potential for accelerated approval,” Dr. Rathjen continued. “Herceptin continues to be the backbone of treatment of HER2+ breast cancer despite its lack of brain penetrance. In preclinical animal models xB3-001 has demonstrated a 10-fold increase in brain penetrance and efficacy in the treatment of HER2+ brain tumors.”