DURHAM, N.C., Sept. 22, 2010 (GLOBE NEWSWIRE) -- Patrick S. Smith, President and Chief Executive Officer of Curaxis Pharmaceutical Corp. (OTCBB:CURX) at www.curaxispharma.com , announced today that it has signed a $25 million equity line agreement with Southridge Partners, II ("Southridge"), an institutional investor.
"We are pleased to have secured this equity line with Southridge, a forward thinking institutional investor which provides future flexibility in capital raising," said Patrick Smith. "We plan to use proceeds, as needed from the agreement, to support our upcoming Phase IIb trial in women of our Alzheimer's disease candidate, Memryte.
Pursuant to a purchase agreement, the Company has the right, at its discretion, to sell to Southridge up to $25 million of its common stock from time to time over a thirty-six month period. Curaxis will have the right, but is not obligated, to sell stock to Southridge depending on certain conditions as set forth in the purchase agreement. "The equity line will be available to us after the related S-1 is declared effective by the Securities & Exchange Commission," stated Smith.
"We are excited to be Curaxis' investment banking partner in this new phase of the company's development. Southridge is committed to working with Curaxis in this vital research toward an Alzheimers disease treatment," said William Schloth, CEO, Southridge Investment Group LLC.
"We are thrilled to have the continued support of Southridge. It is our intent to commence work on the planned Phase IIb trial in the upcoming weeks with clinical site and patient enrollment to commence in early 2011," stated Smith.
About Curaxis
Curaxis is an emerging specialty pharmaceutical company with a hormone drug product candidate for the treatment of Alzheimer's disease and multiple cancers. Curaxis' therapeutic platform is based on the hypothesis that many diseases of aging may be caused by age-related changes in the function of the hypothalamic-pituitary-gonadal (HPG) axis. The HPG axis is a hormonal endocrine feedback loop that controls development, reproduction and aging in animals. This drug development platform is built on the premise that hormones associated with this feedback loop are beneficial early in life, when they promote growth and development, but are harmful later in life when the mechanism for feedback is compromised, thereby leading to disease processes, including pathologies associated with Alzheimer's disease and various cancers. We believe our discovery of similar hormonal signaling mechanisms at the cellular level in brain tissue from Alzheimer's patients and in multiple tumors will enable us to develop significant new treatments for Alzheimer's disease as well as many cancers. For more information, please visit www.curaxispharma.com
Notice Regarding Forward Looking Statements
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding potential results and future plans and objectives of Curaxis Pharmaceutical Corporation and Southridge are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the Securities and Exchange Commission. Other risk factors may include, but are not limited to, fluctuation in quarterly results, and increased competition in our operations, our ability to continue operations as scheduled, and our ability to protect the proprietary technology we use. Further, the company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the company's control, such as announcements by competitors and service providers.
The contents of this press release are presented as a general overview of the company. It is intended only to contain general information regarding the company and its business and does not purport to provide complete disclosure or analysis of all matters, which may be relevant to a decision to make an investment, including all risk factors or similar considerations. Although the information is believed current as of the date herein, the information may be subject to change, amendment or supplementation, and the company does not expect, and assumes no obligation, to update or otherwise revise the information herein.