Biotech Values

[reaper247]

Hey their kei.

Hope you are well. I just wanted to throw this one out there again.

AEPP/Onolix reverse merger is a done deal. Its been a long interesting journey down that rabbit hole.

AEPP PR.

Oncolix, Inc. Completes Merger with Advanced Environmental Petroleum Producers and $2 Million Financing

"Houston, Texas – Aug 7, 2017 – Oncolix, Inc., a clinical-stage biotechnology company developing Prolanta™ for the treatment of ovarian cancer, today announced the completion of a merger between Oncolix and a wholly-owned subsidiary of Advanced Environmental Petroleum Producers, Inc. (OTCQB: AEPP), whereby Oncolix became a wholly-owned subsidiary of AEPP.

“Oncolix has come a long way since the initial collaboration with The University Texas MD Anderson Cancer Center that published the efficacy data demonstrating Prolanta’s™ novel mechanism of action of induced autophagy, and the synergy of Prolanta™ with chemotherapy”, stated Michael T. Redman, Chairman of the Board of AEPP. “With an ongoing Phase I human clinical trial in ovarian cancer patients and the FDA granting Prolanta™ Orphan Drug status for the treatment of ovarian cancer, our strategy is to develop Prolanta™ not only to target ovarian cancer but other solid tumor indications such as breast, prostate and other cancers.”

Mr. Redman continued, “we believe the Oncolix merger offers AEPP shareholders the opportunity to participate in the exciting field of biotechnology and new cancer drug development.”

In conjunction with the merger, AEPP consummated a private placement of debt securities, resulting in gross proceeds of $2.0 million. Newbridge Securities Corporation, through LifeTech Capital, acted as lead placement agent for the offering and as financial advisor for the merger.

Terms of the Merger and Recapitalization
Pursuant to the terms of the Oncolix merger and recapitalization, a total of 71.8 million shares of AEPP common stock were issued to the former common stock holders of Oncolix and 62.1 million shares of AEPP Series A preferred stock were issued to the former preferred stock holders of Oncolix. Each share of Series A preferred stock issued by AEPP is convertible into one share of AEPP common stock, has voting rights, a liquidation preference, and other customary rights and preferences. As a result of the merger and recapitalization, Oncolix became a wholly-owned subsidiary of AEPP, and the shares of AEPP owned by Oncolix were cancelled. As of the closing of the merger, a total of 103.5 million shares of AEPP common stock are issued and outstanding. All of the AEPP capital stock issued to the holders in conjunction with the Oncolix merger and recapitalization are restricted from trading in the public market pursuant to Rule 144 for 12 months following the closing of the transaction.

Terms of Debt Financing
As part of the transaction, AEPP issued $4,190,464 aggregate principal amount of 10%, senior secured notes due November 2018. The $2,352,942 aggregate principal amount of such notes were issued at discount for $2 million in cash proceeds. Furthermore, $1,837,522 of such notes were issued in exchange for existing Oncolix debt obligations in the amount of $1,561,894. The notes are initially convertible at a fixed price into 55,932,836 shares of AEPP common stock subject to future adjustment. AEPP is required to make monthly amortization payments of 1/7th of the principal amount of the notes, commencing on the 9-month anniversary of issuance. The notes are secured by all the assets of AEPP and Oncolix and guaranteed by Oncolix. Additionally, five-year warrants to purchase 55,932,836 shares of AEPP common stock at an exercise price of $0.09 per share, were issued in connection with the debt financing. In connection with the issuance of these notes and warrants, the Company granted registration rights to register the resale of the shares underlying both the notes and warrants.

The Company will file a Form 8-K with the Securities and Exchange Commission describing in detail this debt financing (including the transactional documents issued in connection with the debt financing) as well as providing the “Form 10 Information” regarding Oncolix no later than Wednesday, August 9, 2017".

IMO and FWIW.