HOUSTON, TX / ACCESSWIRE / June 5, 2018 / Oncolix, Inc., (OTCQB: ONCX) a clinical-stage biotechnology company (“Company”) developing Prolanta™ for the treatment of ovarian cancer, today announced the restructuring of its existing debt issued in August 2017 and the issuance of new debt in the principal amount of approximately $1.2 million.
“This financing was supported by the current noteholders and there was 100 percent participation,” stated Michael T. Redman, CEO of Oncolix. “Furthermore, the debt restructuring extended the maturity date to provide further runway for the Company to reach its clinical milestone goals.”
The Company issued secured notes in the principal amount of $1,217,293 for a cash investment of $1,034,674. The convertible notes bear interest at a rate of 10% per annum, with accrued interest payable commencing April 1, 2019, then on the first day of each calendar month thereafter until maturity. The maturity of the convertible notes is August 1, 2019, but commending on April 1, 2019 and on the first day of each calendar month thereafter until maturity, the Company is required to redeem an amount of the convertible notes equal to 1/5th of the original principal amount, plus 10% of such monthly redemption amount. The notes and accrued interest are convertible by the holders into ONCX common stock at a conversion price of $0.03 per share. The purchasers also received warrants at acquiring 49.5 million shares of Company common stock at an exercise price of $0.036 per share. These new notes are secured by all the assets of the Company, pari passu with the holders of the August 2017 notes.
The Company also restructured the terms of its existing securities issued in August 2017. In the restructuring, the principal amount was increased by 30% to an aggregate of $5.4 million, with principal and interest payment terms extended to be identical to the new notes. The principal amount of the notes and accrued interest thereon are now convertible by the holders into Company common stock at the conversion price of $0.03 per share, adjusted pursuant to their terms. These notes, along with the newly issued notes, continue to be secured by all the assets of the Company. The warrants previously issued to the holders of these notes were adjusted pursuant to their terms to increase the number of shares of Company common stock to 176 million and to reduce the exercise price to $0.03 per share.
Oncolix is a clinical-stage biotechnology company developing Prolanta™ for the treatment of ovarian, uterine, breast and other cancers. The Company has a US FDA-cleared IND to commence human testing of Prolanta™ in its first indication, the treatment of ovarian cancer. Prolanta™ is a prolactin receptor antagonist (or blocker) that has demonstrated efficacy in xenograft models through a unique mechanism of action, autophagy. In addition to ovarian cancer, there is strong preclinical evidence Prolanta™ may be effective in breast, prostate and other cancers. In the current Phase 1 dose-escalation safety trial for the treatment of ovarian cancer, to date there have been no observed serious adverse events and no dose-limiting toxicities. The FDA has approved the designation of Prolanta™ as an Orphan Drug for the treatment of ovarian cancer, which may result in reduced filing fees (currently $2 million), federal tax credits and marketing exclusivity.
This press release above may contain forward‐looking statements about the business, financial condition and prospects of the Company. Forward looking statements can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “may,” “goal,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” or “anticipates,” or the negative thereof, or other variations thereon, or comparable terminology, by discussions of strategy or objectives. Forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.
Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in the press release speak only as of the date of the press release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in the press release. Investors are urged to consider closely the disclosures in our Forms 10-K, 10-Q, and 8-K and other filings with the SEC, which can be electronically accessed from the SEC’s website at http://www.sec.gov/.
SOURCE: Oncolix, Inc.