NEW YORK, July 30, 2010 (GLOBE NEWSWIRE) -- Laxai Pharma Ltd. (the "Company") (OTCBB:LAXAF), an international pharmaceutical contract research organization ("CRO"), recently reached an agreement with UTA Capital LLC ("UTA") to extend the terms of an existing secured promissory note issued by the Company in favor of UTA on March 3, 2010 in the aggregate principal amount of $1.44 million ("Note").
Among other things, the parties agreed to extend the term of the Note through December 15, 2010, and to reduce the interest rate on the Note to 15% simple interest per annum. In consideration for these favorable modifications, the Company has agreed to grant to UTA an additional 5-year warrant, which generally would allow UTA to purchase up to 400,000 common shares in consideration for the extension and up to an additional 1,620,000 common shares pro- rated based on the average principal balance outstanding during the remaining term of the Note, all with an exercise price of $.05 per share.
"We are very pleased that UTA has shown such confidence in our business model and in the growth story of Laxai and has chosen to continue to support our efforts to build a fully integrated, international CRO for drug development," said Ram Ajjarapu, Executive Chairman of Laxai.
About Laxai Pharma Ltd.
Laxai is a Contract Research Organization providing integrated services across the drug discovery and development spectrum. The company has steadily evolved, with global facilities in the United States and India. Laxai provides services in Medicinal Chemistry, Biology, Process R&D and Analytical Services, Clinical Research, Strategic Resourcing and Training to the Biopharmaceutical and Agrochemical Companies. Laxai offers a unique value proposition to clients in their drug discovery and development initiatives through innovative global partnership models.
SAFE HARBOR: This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward looking statement made by or on behalf of Laxai Pharma Ltd. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Management's judgment based on assumptions as of the date hereof which may or may not prove to be correct. Readers are referred to the documents filed by the company with the United States Securities and Exchange Commission, that identify important risks which could cause actual results to differ from those contained in the forward looking statements.