BEVERLY, MA–(Marketwire – May 14, 2012) – Cellceutix Corporation (OTCBB: CTIX) (the “Company”), a biopharmaceutical company developing a novel drug to treat cancers and cancers which have proven resistant to today’s cancer therapies (drug-resistant cancers), is pleased to report that it has successfully negotiated terms and entered into a subscription agreement for Series A Convertible Preferred shares with an accredited investor for an aggregate of $1,000,000. Initial funding from the financing was $100,000 for the purchase 10,000 Series A Convertible Preferred Shares and was closed on May 8, 2012.
The proceeds will be used for expenses associated with the planned Phase I clinical trial for Kevetrin™, the Company’s flagship anti-cancer compound. In laboratory tests Kevetrin™ has shown the potential to be a breakthrough drug in the treatment of cancers by demonstrating potent anti-tumor activity through the re-activation of p53, “the Guardian Angel Gene;” resulting in significant tumor size reduction and growth delay.
The Company would also like to inform shareholders that the Quality Control testing and stabilities studies required to file an amended Investigational New Drug (“IND”) application with the Food and Drug Administration (“FDA”) are completed. The new data is being added to the amended IND and undergoing a final review by the Company and then will be collated and submitted to the FDA.
“I am very pleased with the terms of the financing and the nearing of submission of the IND to the FDA,” commented Leo Ehrlich, Chief Executive Officer at Cellceutix. “We have always held our capital structure in the highest regard to preserve shareholder value and we feel that the terms of the agreement are very favorable. We are in a very enviable position. In Kevetrin, we have a new class of drug that in the laboratory shrunk every cancer tumor it was tested against; plan for Phase 1 clinical trials to begin shortly at DFCC; Beth Israel Deaconess Hospital is covering the costs of their research on Kevetrin™ in combination studies with Pfizer drugs; and we have a meeting coming in June with the FDA regarding guidance to advance Prurisol™ into advanced clinical trials as an indication for psoriasis. Add in Jim Boeheim joining our team and 2012 is aligning to be a banner year for Cellceutix and its shareholders.”