AVAX plans $45 million private placement of convertible preferreds

Proceeds to fund next round of clinical testing; aiming for zero debt

New York, Aug. 4 – AVAX Technologies, Inc. said it plans to raise $45 million through a private placement of series A convertible preferred shares.

Proceeds will be used to fund its next round of clinical testing, according to a news release.

Phoenix Corporate Finance Inc. will advise on the preferreds, structure the offering and facilitate its distribution.

The securities will be sold through dealers in the United States and Canada.

AVAX also announced that it has signed a settlement and release agreement to resolve debt owed to Cancer Treatment Centers of America Inc.

Under the agreement, Cancer Treatment Centers will settle its $5,826,464.73 judgment for AVAX in exchange for 860,000 series A convertible preferred shares at a consideration of $5.00 per share and $1.5 million in cash.

In addition, Firebird Management, a shareholder and a creditor of AVAX, has agreed to swap its outstanding debt for the series A convertible preferreds, also at a consideration of $5.00 per share.

“We are extremely happy to be able to move forward with the reorganization of AVAX’s balance sheet and look forward to re-commencing the important planned clinical trials at AVAX,” said Andrew Dahl, a board member of AVAX, in a news release.

“Our previous work with CTCA on clinical programs has been very successful.”

SGC Canada Inc. is negotiating with AVAX’s creditors with the goal of making the company free of debt.

AVAX is a Philadelphia-based developer of cancer immunotherapy products.

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