Aphton Corporation Announces Restructuring of Long-Term Debt; Restructuring Signifies Streamlined Capital Structure and Turning
November 09 2005 - 5:53PM
Business Wire
Aphton Corporation (NASDAQ:APHT) announced today that the Company
entered into a binding letter agreement with the holders of the
Company's $20 million Senior Convertible Notes, which were issued
to the holders in March and June of 2003. Under the terms of the
letter agreement, the holders agree to surrender the Senior
Convertible Notes for cancellation by the Company and exchange the
entire principal balance of $20 million due under the notes for $3
million in cash, shares of the Company's newly issued 0%
Non-participating Series A Convertible Preferred Stock with an
original Stated Value of $10 million and 6,500,000 shares of the
Company's common stock, of which 1,500,000 shares will be placed in
escrow at closing to be released upon the occurrence of certain
events. The parties anticipate closing the transaction on or prior
to November 18, 2005. "We are quite pleased with the outcome of our
negotiations with the noteholders," commented Patrick Mooney, M.D.,
Chairman and Chief Executive Officer of Aphton Corporation. "We
believe that the terms of the note exchange denote confidence from
the noteholders, simplify the Company's balance sheet and remove a
significant overhang on the Company. We further believe that the
retirement of this debt puts the Company in a stronger position
going forward to return shareholder value." Complete details of the
debt cancellation will be contained in the Company's Form 8-K filed
with the Securities and Exchange Commission. The Company will be
holding a conference call on Thursday, November 10, 2005 at 9:00
a.m. ET to discuss the terms of the exchange of the notes, as well
as other items related to the Company. -0- *T A live audio webcast
of the conference call can be accessed either by telephone at: Toll
Free in the US/Canada at 1-800-322-0079; Code Aphton Corporation
Outside the U.S. at 1-973-409-9258; Code Aphton Corporation Or via
the internet at http://viavid.net/dce.aspx?sid=00002AC7. *T A
replay of the presentation will be available via the website and
will begin approximately 2 hours after the conference call has
concluded and will be available for 14 days. About Aphton Aphton
Corporation, headquartered in Philadelphia, Pennsylvania, is a
clinical stage biopharmaceutical company focused on developing
targeted immunotherapies for cancer. Aphton's products seek to
empower the body's own immune system to fight disease. Through the
acquisition of Igeneon AG in March 2005, Aphton acquired late-stage
products, IGN101, a cancer vaccine designed to induce an immune
response against EpCAM-positive tumor cells, as well as IGN311.
Aphton has strategic alliances with Daiichi Pure Chemicals for the
development, manufacturing and commercialization of gastrin-related
diagnostic kits; and with Xoma for treating gastrointestinal and
other gastrin-sensitive cancers using anti-gastrin monoclonal and
other antibodies. Aphton's most advanced product, Insegia(TM),
targets the hormone, gastrin 17, in an attempt to treat
gastrointestinal cancers. For more information about Aphton or its
programs please visit Aphton's website at: www.aphton.com. Safe
Harbor This press release includes forward-looking statements,
including statements about: (1) the Company's belief that the terms
of the note exchange denote confidence from the noteholders,
simplify the Company's balance sheet and remove a significant
overhang on the Company; (2) the Company's belief that the
retirement of the debt puts the Company in a stronger position
going forward to return shareholder value; and (3) the Company's
expectation that it will close the debt exchange on or prior to
November 18, 2005, or at all. These forward-looking statements may
be affected by the risks and uncertainties inherent in the drug
development process and in Aphton's business. This information is
qualified in its entirety by cautionary statements and risk factor
disclosure contained in Aphton's Securities and Exchange Commission
filings, including Aphton's report on Form 10-K filed with the
Commission on March 16, 2005. Aphton wishes to caution readers that
certain important factors may have affected and could in the future
affect Aphton's beliefs and expectations and could cause the actual
results to differ materially from those expressed in any
forward-looking statement made by or on behalf of Aphton. These
risk factors include, but are not limited to: (1) Aphton's ability
to successfully close the debt exchange on or prior to November 18,
2005, or at all; (2) Aphton's ability to return shareholder value
if the debt exchange is consummated; (3) Aphton's ability to fund
the further development of its research and development programs;
(4) Aphton's ability to successfully identify and consummate
opportunities to broaden and progress its research and development
pipeline; (5) scientific developments regarding immunotherapy; (6)
Aphton's ability to successfully integrate Igeneon's operations and
product portfolio with Aphton's operations and product portfolio;
and (7) the actual design, results and timing of preclinical and
clinical studies for both companies' products and product
candidates.
Aphton (NASDAQ:APHT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Aphton (NASDAQ:APHT)
Historical Stock Chart
From Jul 2023 to Jul 2024