MELBOURNE, AUSTRALIA / ACCESSWIRE / November 10, 2015 / Propanc Health Group Corporation (OTCQB: PPCH) (“Propanc” or “the Company”), an emerging healthcare company focusing on development of new and proprietary treatments for cancer patients suffering from pancreatic and colorectal cancers, today announced the Company has secured $4 million from an institutional investor in order to progress their lead product, PRP, towards human trials.
Under the terms of the Agreement, a $1.2 million promissory note entered into by the investor on September 24th has now been included in the investment amount under the new purchase agreement. A further $2.8 million of the investment amount will be paid (totaling $4 million), pending the achievement of certain milestones and equity conditions set forth in the agreement.
The aggregate deal size provides sufficient capital to cover future research and development activities leading up to the preparation and commencement of human trials for their lead product, PRP, and is expected to sufficiently cover the Company’s operations over the next 12 months.
Management worked closely with its advisors to establish important, yet achievable milestones in order to draw on the remaining funds in the near term, including reporting on positive animal efficacy data for their lead product, PRP, which the Company expects to deliver in the very near future.
“We are delighted to complete this important capital raising and welcome our new investor to the Company,” said James Nathanielsz, Propanc’s Chief Executive Officer, “Our investor proved to be flexible in negotiating terms which are fair and reasonable, providing invaluable support for the Company’s long term plans. I firmly believe this financing puts the Company in a position to rapidly progress PRP towards human trials. Further announcements are imminent, but we remain excited about the potential of PRP as a long term solution to the prevention and treatment of metastatic cancer.”
The Company understands shareholders are anticipating further news about ongoing research and development activities and management assures investors they are very keen to report results to the market as soon as possible. As of now, scientific experts are evaluating the data to determine what may be patentable, as well as assisting with preparing for regulatory agency meetings early next year in order to confirm the clinical development pathway for PRP.
After completing this important financing for the Company, management will now focus its attention towards up-listing onto a National Exchange, most likely in 2016.
“We believe that up-listing onto a top tier Exchange like the NASDAQ is an important step for the Company to realize value and become a recognized player in the biotech sector. Nevertheless, we will continue to focus on achieving our near term milestones and remain hopeful that market conditions will present an opportunity for up-listing, which shareholders will view positively and welcome as part of the Company’s overall growth strategy.”
The Company provided further information regarding this recent financing in a Form 8-K filed with the SEC on November 3rd, 2015.