Callisto Pharmaceuticals Raises $11.2 Million in Series B Preferred Stock Financing
07 Agosto 2007 - 7:00AM
PR Newswire (US)
NEW YORK, Aug. 7 /PRNewswire-FirstCall/ -- Callisto
Pharmaceuticals, Inc. (Amex: KAL; FWB: CA4), a biopharmaceutical
company primarily focused on the development of new drugs to treat
cancer and gastrointestinal diseases, announced today that it has
closed a private placement of 1,124,550 shares of Series B
Convertible Preferred Stock and 22,491,000 warrants for aggregate
gross proceeds of approximately $11.2 million. The Series B
Convertible Preferred Stock is convertible into shares of common
stock of the Company at $0.50 per share. The warrants are
immediately exercisable at $0.70 per share and are exercisable at
any time within three years from the date of issuance. The private
placement was co-led by RAB Special Situations (Master) Fund
Limited, which is managed by RAB Capital plc, a multi-strategy
absolute return investment management company with $6.7 billion
under management as of June 30, 2007, and by Absolute Octane Master
Fund Limited which is managed by Absolute Capital Management
Holdings Limited with $3.25 billion under management as of June 30,
2007. Absolute Capital Management Holdings Limited and RAB Capital
plc were joint winners of the "Best Overall Group" category in the
Hedge Fund Review European Performance Awards in June 2006. RAB
Capital plc won this award again in 2007. The proceeds from the
financing will be used to continue to fund Callisto's clinical
development of Atiprimod and L-Annamcyin, which are currently in
clinical trials, and the development of Guanilib, Callistro's drug
for gastrointestinal diseases. Atiprimod, Callisto's lead drug in
the clinic, is presently in a Phase II clinical trial in low to
intermediate grade neuroendocrine carcinoma patients -
predominantly advanced carcinoid cancer patients - at five clinical
sites in the U.S. L-Annamycin is in Phase I trials in both adults
and children with relapsed or refractory acute leukemia. "Our two
co-leads, RAB Capital and Absolute Capital Management, are highly
regarded long term fundamental investors who have specifically
mandated that 50% of the funds raised in this financing be used to
advance development of Guanilib," said Gabriele M. Cerrone,
Chairman of Callisto. "Up until now, Callisto has not had the
financial wherewithal to take this drug into the clinic. This marks
the first time in our history that we will be able to unlock
Guanilib's true value, and should provide us with the means to take
the drug all the way into Phase II clinical testing." Mr. Cerrone
went on to say, "Callisto's focus these past two years has been on
the development of cancer therapies for small markets. In contrast,
Guanilib, a proprietary drug developed and patented by Callisto
scientists, provides us with an opportunity to target much larger
markets represented by gastrointestinal diseases which affect the
lives of literally millions of patients." The securities issued in
the private placement have not been registered under the Securities
Act of 1933, as amended. Accordingly, these securities may not be
offered or sold in the United States, except pursuant to the
effectiveness of a registration statement or an applicable
exemption from the registration requirements of the Securities Act.
Callisto has agreed to file a registration statement covering
resale of the securities by the private placement investors. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities. About Atiprimod
Atiprimod is an orally bio-available small molecule drug that
displays multiple mechanisms of action. The drug has been shown to
be antiangiogenic, inhibit secretion of VEGF and IL-6, elicit an
apoptotic response (programmed cellular death), and inhibit
phosphorylation of key kinases involved in tumor progression and
survival including Akt and STAT3. The drug is presently in two
clinical trials: a Phase II trial in advanced carcinoid cancer
patients, and a Phase I/IIa human clinical trial in relapsed or
refractory multiple myeloma patients. About Guanilib Guanilib (also
called SP-304) is a potent analog (synthetic molecule) of
uroguanylin developed by Callisto scientists, and is proprietary to
Callisto. Guanilib has been demonstrated to be superior to
uroguanylin in its biological activity, protease stability and pH
characteristics, and is currently undergoing pre-clinical animal
studies as a treatment for gastrointestinal (GI) diseases and GI
inflammation. Animal model data on Guanilib previously demonstrated
anti-inflammatory activity in a number of mouse-models of
ulcerative colitis. Callisto plans to initiate clinical trials of
Guanilib in early 2008. About Callisto Pharmaceuticals, Inc.
Callisto is a biopharmaceutical company focused on the development
of new drugs to treat various forms of cancer and gastrointestinal
diseases. Callisto's drug candidates in development currently
include anti-cancer agents in clinical development, in addition to
drugs in pre-clinical development for other significant health care
markets, including gastrointestinal disorders. One of the Company's
lead drug candidates, Atiprimod is presently in a Phase II clinical
trial in advanced carcinoid cancer patients, a neuroendocrine
tumor, and in a Phase I/IIa human clinical trial in relapsed or
refractory multiple myeloma patients. Another anti-cancer drug,
L-Annamycin, is being developed as a treatment for forms of
relapsed or refractory acute leukemia, a currently incurable blood
cancer. L-Annamycin is currently in a Phase I clinical trial in
adult relapsed or refractory acute lymphocytic leukemia, and in a
Phase I clinical trial in children and young adults with refractory
or relapsed acute lymphocytic leukemia or acute myelogenous
leukemia. L- Annamycin, a member of the anthracycline family of
proven anti-cancer drugs, has a novel therapeutic profile,
including potential activity against multi- drug resistant tumors
and significantly reduced cardiotoxicity, or damage to the heart,
compared to currently available drug alternatives. Callisto also
has a proprietary drug Guanilib in preclinical development for
gastrointestinal diseases. Callisto has exclusive worldwide
licenses from Genzyme Inc. and M.D. Anderson Cancer Center to
develop, manufacture, use and sell Atiprimod and L-Annamycin,
respectively. Callisto is also listed on the Frankfurt Stock
Exchange under the ticker symbol CA4. More information is available
at http://www.callistopharma.com/. Forward-Looking Statements
Certain statements made in this press release are forward-looking.
Such statements are indicated by words such as "expect," "should,"
"anticipate" and similar words indicating uncertainty in facts and
figures. Although Callisto believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no
assurance that such expectations reflected in such forward-looking
statements will prove to be correct. As discussed in the Callisto
Pharmaceuticals Annual Report on Form 10-K for the year ended
December 31, 2006, and other periodic reports, as filed with the
Securities and Exchange Commission, actual results could differ
materially from those projected in the forward-looking statements
as a result of the following factors, among others: uncertainties
associated with product development, the risk that products that
appeared promising in early clinical trials do not demonstrate
efficacy in larger-scale clinical trials, the risk that Callisto
will not obtain approval to market its products, the risks
associated with dependence upon key personnel and the need for
additional financing. DATASOURCE: Callisto Pharmaceuticals, Inc.
CONTACT: Gary Jacob of Callisto Pharmaceuticals, Inc.,
+1-212-297-0010, ; Investors: John Baldiserra of Barretto Pacific
Corporation, +1-800-368-1217, for Callisto Pharmaceuticals, Inc.
Web site: http://www.callistopharma.com/
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