PHILADELPHIA--(BUSINESS WIRE)--AVAX Technologies, Inc., (“AVAX” or “The Company”) (AVXT – OTCMKTS), a leading developer of proprietary cancer immunotherapy products, has signed a Settlement & Release Agreement with Cancer Treatment Centers of America Inc. (“CTCA”) to positively resolve the existing debt obligations owed to CTCA.
Under the terms of the Settlement Agreement, CTCA has agreed to settle its $5,826,464.73 Judgment against AVAX in exchange for 860,000 Series A Convertible Preferred Shares at a consideration of $5.00 per share, and a one-time payment of $1.5 million in cash. Firebird Management, a shareholder and a creditor of AVAX, has agreed to swap its outstanding debt for the Series A Convertible Preferred Shares also at a consideration of $5.00 per share.
Andrew Dahl, AVAX Board Member noted, “we are extremely happy to be able to move forward with the reorganization of AVAX’s balance sheet and look forward to re-commencing the important planned clinical trials at AVAX. Our previous work with CTCA on clinical programs has been very successful.”
Richard Rainey, Acting Chief Executive Officer of AVAX, stated, “We are pleased that throughout the development of our AC Vaccine® platform, all of our data has remained consistently positive and has supported further development of the treatment. We feel our immunotherapy platform is consistent with recently approved products and could be additive to the benefits achieved in helping patients with cancer.”
SGC Canada Inc., is acting on behalf of AVAX with its creditors in negotiating its informal restructuring plan. David Holden, the Senior Corporate Advisor of SGC states that “AVAX will be effectively debt-free once the Financial Restructuring & Refinancing Plan is completed.” The Board of AVAX has previously approved the engagement of Phoenix Corporate Finance Inc., a corporate finance firm which specializes in alternative financing, to advise, structure, and facilitate the distribution of a proposed Private Placement financing. through select securities dealers in the US and Canada. AVAX intends to raise $45 million to fund its next round of clinical testing through the issuance of the Series A Convertible Preferred Shares.
About AVAX Technologies Inc.
AVAX Technologies, Inc. is a Philadelphia based biotechnology company engaged in the research, clinical and commercial development of biological products and cancer therapeutics. AVAX’s AC Vaccine platform is a therapeutic cancer vaccine. AVAX previously submitted a protocol for its planned Phase 3 pivotal registration trial of M-Vax, its AC Vaccine® product candidate for the treatment of Melanoma. AVAX has met with the United States Food and Drug Administration (“FDA”) on the study design and has plans to continue to work with FDA to be able to focus and re-launch this pivotal clinical study. The company completed enrollment of its Phase 1/2 Trial for O-Vax, its AC Vaccine® product candidate for the treatment of Ovarian Cancer. Early results from this promising clinical study were presented at the Society of Gynecologic Oncology’s 19th Annual Winter Meeting, which AVAX announced in January 14, 2014. The Company plans to obtain all of the follow-up data and meet with the FDA to discuss further clinical development plans regarding this program.
About Cancer Treatment Centers of America Inc.
Cancer Treatment Centers of America Global (CTCA) is a national network of five hospitals that specialize in the treatment of patients fighting complex or advanced-stage cancer. CTCA offers an integrative approach to cancer treatment that combines surgery, radiation, and chemotherapy with nutritional counseling, naturopathic medicine, mind-body therapy, and spiritual support to enhance quality of life and minimize side effects during treatment. The company serves patients from around the world at hospitals located in Atlanta, Chicago, Philadelphia, Phoenix and Tulsa. Known for delivering the Mother Standard® of care and Patient Empowerment Medicine®, CTCA provides patients with comprehensive information about their treatment options so they can participate in their treatment decisions.
Statements in this press release that are not historical facts, including statements about future expectations of AVAX Technologies, Inc., such as statements about potential clinical trial results with M-Vax and O-Vax, advancement of other program products, potential actions by regulatory agencies in the United States relating to M-Vax and O-Vax, regulatory plans, development programs and the market potential of M-Vax and O-Vax are "forward-looking statements" within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and as that term is defined in the Private Securities Litigation Reform Act of 1995. AVAX intends that such forward-looking statements be subject to the safe harbors created thereby. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause AVAX's actual results to be materially different from its historical results or from any results expressed or implied by such forward-looking statements. AVAX's actual results may differ materially from those discussed in the forward-looking statements for reasons including, but not limited to, AVAX’s ability to raise additional financing or financing on terms favorable to current and existing shareholders, result of clinical trials, regulatory actions by the FDA and other regulatory agencies and the need for regulatory approvals, AVAX's ability to fund development of its technology and establish and successfully complete clinical trials, the Company's ability to maintain its rights under license agreements and to meet funding requirements under its license agreements, the length of time and cost required to complete clinical trials and submit applications for regulatory approvals, products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies, commercial acceptance of AVAX's products, and other factors discussed in AVAX's previous public filings with the SEC. AVAX undertakes no obligation to update these forward-looking statements in light of actual results or events that occur after the date of this press release.