VANCOUVER and HOUSTON, Dec. 1st, 2016 /CNW/ - Medicenna Therapeutics Inc., the parent of wholly owned Medicenna BioPharma (the "Company" or "Medicenna"), developing novel targeted cancer immunotherapies, today announced that it has closed the fourth and final tranche of a private placement. The private placement of special warrants (the "Special Warrants" comprising the "Offering") included various institutional and individual accredited investors and certain of the Company's officers and directors. Medicenna raised total gross proceeds of approximately CDN $10 million, enough for Medicenna Biopharma to access the full USD $14.1 million in non-dilutive funds previously awarded by the Cancer Prevention & Research Institute of Texas (CPRIT), which required a matching financing of at least USD $7 million. The CPRIT funds are released to Medicenna in tranches as it achieves a series of product development milestones. Medicenna has received USD $2.2 million of the CPRIT funds to date.
"This is a significant achievement for Medicenna, as access to USD $21 million enables the Company to execute key clinical and regulatory milestones over the next two years," said Fahar Merchant, President & CEO of Medicenna. "Operating from our new base in Houston, we are in a strong position to deliver on our CPRIT objectives with our lead clinical candidate, MDNA55 for recurrent glioblastoma (a uniformly fatal form of brain cancer), and develop our next generation Empowered Cytokines for other solid tumours."
Each Special Warrant was priced at CDN $2.00 and is exercisable at the option of the holder, or automatically upon satisfying certain criteria, into one share of the Company's common stock for no additional consideration. Under certain circumstances, each Special Warrant will be exercisable into 1.333 shares of the Company's common stock for no additional consideration.
Medicenna plans to use proceeds from the Offering to conduct a Phase 2b clinical trial in adult patients with glioblastoma at first recurrence or progression following failure with the current standard of care. In addition, novel fusion proteins with enhanced targeting capabilities and associated companion diagnostics will be developed to expand Medicenna's immuno-oncology pipeline of personalized therapies. Medicenna is also planning to execute a go-public transaction in early 2017.
Bloom Burton & Co. Ltd. acted as sole placement agent for the Offering.
Beginning operations in 2009, CPRIT has to date awarded $1.64 billion in grants to Texas researchers, institutions and organizations. CPRIT provides funding through its academic research, prevention, and product development research programs. Programs made possible with CPRIT funding have reached all 254 counties of the state, brought more than 110 distinguished researchers to Texas, advanced scientific and clinical knowledge, and provided more than 3.0 million life-saving education, training, prevention and early detection services to Texans. Learn more at cprit.texas.gov.
About Medicenna Therapeutics
Medicenna Therapeutics is a clinical stage immuno-oncology company developing novel highly selective versions of IL-2, IL-4 and IL-13 Superkines™ and first in class Empowered Cytokines™ (ECs). Its wholly owned subsidiary, Houston-based Medicenna BioPharma, is specifically targeting the Interleukin-4 Receptor (IL4R), which is over-expressed by at least 20 different types of cancer affecting more than one million new cancer patients every year. Medicenna's lead IL-4EC, MDNA55, is entering Phase 2b clinical trials for glioblastoma, the most aggressive and common form of brain cancer. MDNA55 has completed three clinical trials in 72 patients with recurrent glioblastoma, demonstrated compelling efficacy and obtained Fast-Track and Orphan Drug status from USFDA. Unlike most other cancer therapies, Medicenna's IL-4 ECs have the potential to purge both the tumor and the immunosuppressive tumor microenvironment, offering a unique treatment paradigm for a large majority of cancer patients. For more information, please visit www.medicenna.com.
The information in this press release may contain certain forward-looking statements, including the quote of Medicenna's President and CEO and any expectations relating to the Company's clinical development program, achievement of product development milestones, a go-public transaction, and/or the timing of these. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Medicenna's current beliefs as well as assumptions made by and information currently available to Medicenna and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, clinical trial results, market acceptance, ability to raise capital and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including those identified by Medicenna, actual events may differ materially from current expectations. Medicenna disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Medicenna Therapeutics Inc.