0:29 AM ET, 12/05/2019 - GlobeNewswire
MIRAMAR, Fla., Dec. 05, 2019 (GLOBE NEWSWIRE) -- Generex Biotechnology Corporation (OTCQB: GNBT) is pleased to announce that the company has finalized agreements to provide significant funding for ongoing operations, launching new businesses, and advancing the commercial development of new products from the NuGenerex family of companies. As discussed on the shareholder conference call last Friday, Generex yesterday signed definitive documents to secure a short-term bridge financing of $2.2 million dollars. Generex also signed documents for 40 million in an equity investment instrument that will close once the company has an effective registration statement covering the shares issued under that instrument. With these funding initiatives complete and definitive, Generex plans to move forward immediately to establish our Arizona operations for diabetes and chronic care management, including our podiatry, ophthalmology, neurology, and pharmacy practices in partnership with the Arizona Endocrinology Center and Paradise Valley Family Practice. The funds will be used to build out facilities, hire the medical and clinical staff, and to secure the licenses and accreditation for our MSO/HMO network that will make our vision a reality. Additionally, the funds will be used to complete the acquisition of Altucell and to fund human clinical trials of Altsulin® encapsulated Sertoli cells for Type I diabetes and encapsulated stem cells in Altucaps® for autoimmune and inflammatory disorders. The funds will also support the ongoing clinical development efforts with AE37 in combination with Merck’s Keytruda for the treatment of triple negative breast cancer, as well as clinical trials of Regentys ECMH for the treatment of ulcerative colitis, which are expected to begin shortly. In addition, the funds will allow us to also expand the product portfolios of our subsidiary companies, Medisource, Pantheon, and Olaregen, particularly in the regenerative medicine space, where we will be announcing new product introductions in the coming weeks. Finally, the funding will allow Generex to re-start the MSO with a new, fully compliant operating structure that will enable us to execute our strategy to provide an end-to-end patient-focused solution our partners, the orthopedic surgeons and podiatrists in the MSO. Also, in the coming days, Generex will file 8K’s on these investments, and will provide guidance on the next steps for reinstating the postponed dividend.
Joe Moscato, President & CEO of Generex stated, “These equity investments are key to building out many of our new businesses and solidifying our subsidiary partnerships to further the clinical development and commercialization of a wide array of new products. After much work, Generex is excited to receive funding for our enterprise that will enable us to realize real revenues and further the science that forms the foundation for our valuable assets to build considerable value into the future. Further, this funding is expected to cover our one-year plus operational costs, allowing the removal of the going concern by our auditors. and enabling us to once again move toward a Nasdaq listing, building value to bring our share price back to a qualifying level for the up-list. With these investments in hand that will fund Generex over the next 2 to 3 years, we are excited for 2020 and beyond.”
