Commitment of up to $100 Million in Total Proceeds
Transaction Subject to Definitive Agreement
WESTLAKE VILLAGE, Calif., March 17, 2017 (GLOBE NEWSWIRE) -- Inspyr Therapeutics (OTCQB:NSPXD), a clinical-stage biotechnology company developing a novel prodrug therapeutic for the treatment of cancer, announced today that the Company has signed an agreement [or “a preliminary agreement”] with Milost Global, Inc., a U.S. private equity firm, for a commitment of up to $100 million. Proceeds will be used to advance Inspyr’s clinical development plans and provide for working capital needs. The agreement includes an investment from Milost of up to $25 million in common stock, priced at a premium to the current share price, and up to $75 million in convertible notes. Over the coming weeks, Inspyr expects to finalize additional terms, including the amount and number of drawdowns and terms of each tranche, under a definitive agreement.
“This commitment from Milost greatly strengthens our capital structure and our ability to accelerate our clinical development plans,” said Peter Grebow, PhD, Chairman of Inspyr Therapeutics. “The debt and equity structure allows us to execute our near-terms goals to evaluate our lead asset Mipsagargin in several preclinical studies as well as consider strategic, longer-term opportunities to expand our pipeline. This financing enables us to execute our plans for Inspyr to emerge as a key player in developing new treatments for patients with cancer.”
“Weare excited to be partnering with Inspyr in their plans to become an industry leader. We look into companies that have such potential and come in as a cornerstone investor and take them where they need to be. At such a crucial moment in the life of Inspyr, our financing will help them propel forward to commercialization and beyond.” Said Egerton Forster, Milost Global Inc. Co-Founder and CEO.
About Milost Global Inc. Milost Global Inc. is a private equity firm that specializes in providing alternative capital, acquisition capital, mezzanine finance and alternative lending to a broad range of industries across the globe including technology, transportation, cannabis, education, distribution, mining, oil and gas, financial services, healthcare, pharmaceuticals and real estate.
About Inspyr Therapeutics Inspyr Therapeutics, Inc. develops therapies for cancer using a novel technology platform that combines a powerful therapeutic (thapsigargin) with a patented prodrug delivery system that targets the release of drugs within solid tumors. Mipsagargin, its lead drug candidate, has been studied in a Phase 2 clinical trial in patients with Nexavar-refractory hepatocellular carcinoma (HCC) and has been granted Orphan Drug designation by the U.S. Food and Drug Administration (FDA) in this indication. For additional information on Inspyr Therapeutics, visit www.inspyrtx.com.
Cautionary Statement Regarding Forward-Looking Information This communication may contain forward-looking statements. Investors are cautioned that statements in this document regarding potential applications of Inspyr's technologies or the future prospects of the company constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights and the acceptance of Inspyr’s proposed therapies by the health community. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties will be detailed from time to time in Inspyr's periodic reports filed with the Securities and Exchange Commission.