SAN DIEGO, CA, July 26 (dbusiness)� Maxim Pharmaceuticals received $20 million through a private placement of stock from undisclosed new and existing investors.
The money will be used to complete the company�s third phase of clinical trials on its flagship melanoma and leukemia drug product, Maxamine, other clinical studies and general purposes. The company is developing advanced drugs, therapies and vaccines for cancer and infectious diseases.
So is the $20 million placement good news or not quite such good news? The proxy statment indicated that "The Company currently anticipates issuing between $50 and $75 million of such Notes." Any indication whether the change is due to changed needs (unlikely) or an inability to raise more at this time (very possible)? $20 million is nice, but it doesn't seem like enough to support the current studies for very long. I assume the ambiguity of the situation is the reason the stock hasn't moved much.