Bioaccelerate subsidiary Evolve Oncology to seek out private placements

By Sheri Kasprzak

New York, Feb. 10 - Evolve Oncology Inc. said it intends to conduct a private placement of stock or convert outstanding loans to help improve its liquidity.

In the company's latest form 10-QSB filed with the Securities and Exchange Commission, Evolve, which is a subsidiary of Bioaccelerate Holdings Inc., said it will seek out a convertible debenture or loan financing.

"To meet our present and future liquidity requirements, we will seek out additional funding through private placements, conversion of outstanding loans and payables into common stock, development of the business of our newly acquired subsidiaries, entering into loans and other types of financing arrangements such as convertible debentures and through additional acquisitions that have sufficient cash flow to fund subsidiary operations," said the report.

"The company receives financial support from a parent company, Bioaccelerate Inc. This provides funding for the working capital requirements of the company and it is intended that this will be the primary means of funding the company's operations for the foreseeable future.

"There can be no assurance that we will be successful in obtaining more debt and/or equity financing in the future or that our results of operations will materially improve in either the short- or the long-term."

For the quarter ended May 31, 2004 - the last available earnings record for the company - Evolve reported a net loss of $762,011. This is compared with a net loss $62,840 for the same period ended May 31, 2003.

Parent company Bioaccelerate is no stranger to the PIPE market. On Nov. 1, 2005 the company raised $1,024,008 in a private placement of series A convertible preferred stock and on Oct. 7, 2005 it raised another $18,772,580 in series A convertible preferreds. Each preferred, in both offerings, was convertible into four common shares at $1.50 each.

Based in New York, Evolve develops compounds used to treat cancer.

On Jan. 13, the company's last trade, Evolve's stock closed at $4.25 (Pink Sheets: EVON).

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