looks like grants a are being awarded across the board today
HOUSTON--(BUSINESS WIRE)-- Bio-Path Holdings, Inc. (OTCBB: BPTH) (“Bio-Path”), a biotechnology company developing a liposomal delivery technology for nucleic acid cancer drugs, today announced that it has received a grant of $244,479 from the United States Government to help fund the Company’s Phase I clinical trial of its lead cancer drug candidate Liposomal Grb-2. The amount of funds awarded was the maximum allocation allowed under the program.
Bio-Path is developing a neutral lipid-based liposome delivery technology for nucleic acid cancer drugs (including antisense and RNAi molecules), a delivery technology that forms microscopic-sized vehicles to deliver these drugs safely to their intended target cancer cells. The Company’s lead product candidate, Liposomal Grb-2, is currently in a Phase I clinical trial for blood cancers including acute myeloid leukemia (AML), chronic myelogenous leukemia (CML), acute lymphoblastic leukemia (ALL) and myelodysplastic syndrome (MDS).
The grant will be made through the U.S. Government’s Qualifying Therapeutic Discover Project Program, established under the Patient Protection and Affordable Care Act. The Internal Revenue Service in consultation with the U.S. Department of Health and Human Services qualified investments attributable to the program. Bio-Path expects to receive the funds from the grant by the end of the year 2010.
Peter Nielsen, President and Chief Executive Officer of Bio-Path, commented, “We are very pleased to receive grant funding to support the on-going Liposomal Grb-2 clinical trial. This trial is an important step in providing clinical evidence that Bio-Path’s neutral lipid delivery technology will deliver antisense and RNAi substances safely and with high uptake to cancer cells, the missing link in making antisense and RNAi therapeutics a reality. The grant program was very competitive and being selected is a strong validation of the Company’s technology.”
Item 3.02 Unregistered Sales of Equity Securities. As of March 17, 2011, Bio-Path Holdings, Inc. (the "Company") has issued or has agreed to issue, in the aggregate since the date of filing its Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, more than 5% of its outstanding shares of common stock, par value $0.001 ("Common Stock"). Between December 22, 2010 and March 17, 2011, the Company entered into subscription agreements with certain accredited investors, pursuant to which the Company issued or has agreed to issue an aggregate of 2,500,000 shares (the "Shares") of Common Stock (exclusive of shares of Common Stock issued or to be issued to the Placement Agent as described below) in exchange for aggregate consideration of $750,000. The Company engaged ACAP Financial, Inc. (the "Placement Agent") as placement agent in connection with the sale of the Shares. As consideration for its services, the Company has agreed to pay to the Placement Agent 10% of the gross proceeds from the sale of the shares of Common Stock sold pursuant to such subscription agreements and to issue to the Placement Agent one share of Common Stock for each ten shares of Common Stock sold by the Placement Agent. The Shares were sold by the Company pursuant to Section 4(2) and/or Rule 506 of Regulation D promulgated under the Securities Exchange Act of 1933, as amended. The proceeds from the sale of the Shares are to be used to fund working capital to continue and expand the Company's ongoing business.