New Brunswick, New Jersey
August 7, 2007
Senesco Technologies, Inc. ("Senesco" or the "Company")
(AMEX:SNT) today announced that it has entered into definitive
agreements for the private placement with YA Global Investments,
LP ("YA Global") of an aggregate of up to $5 million, three-year
secured convertible debentures with an 8% coupon, pending
approval by the American Stock Exchange. The Company intends to
close on $1.5 million immediately upon AMEX approval and pending
other customary closing conditions, and $1.5 million upon the
filing of a registration statement, with the balance subject to
stockholder approval and the Company's fulfillment of other
covenants and milestones.
The Company plans on using the proceeds to advance a certain
cancer target with the goal of ultimately initiating a Phase I
clinical trial, as well as other human health and agricultural
research and general corporate purposes. In connection with the
potential clinical trial, the Company will be working towards
engaging a clinical research organization to assist the Company
through the process, completing a pre-clinical animal model of
the disease and evaluating potential delivery systems for the
Company's technology in the animal model, and contracting for
the supply of pharmaceutical grade materials. Toxicology and
human studies, and ultimately filing an investigational new drug
application with the U.S. Food and Drug Administration for their
review and consideration in order to initiate a clinical trial
will require additional financing.
The Company estimates that it will take approximately one year
to complete the above steps. The Company believes that the
proceeds from the financing will be sufficient to allow it to
complete some of the steps outlined as well as fund other
research projects and general and administrative expenses for
approximately twelve months.
The debentures are convertible at a fixed price of $0.90 a share
for the first two years, pending completion of certain corporate
operating milestones by January 31, 2008, and a floating
conversion rate for the third year. YA Global will also receive
five-year 100% warrant coverage, based upon the $0.90 conversion
price, and in connection with this private placement, Senesco
has agreed to file a registration statement on Form S-3 within
30 days of the signing date to register the shares of common
stock underlying YA Global's debentures and warrants.
The additional terms of this financing will be described in a
Current Report on Form 8-K filed subsequently hereto.
The Company cannot assure you that AMEX will approve this
financing, or if it does, that the Company's stockholders will
approve this financing, or that the Company will meet the agreed
upon milestones or covenants contained therein in order for it
to receive the additional funding.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. The shares of
common stock have been sold pursuant to an exemption from state
and federal securities laws.
Senesco Technologies, Inc. is a U.S. biotechnology company.
Senesco has initiated preclinical research to trigger or delay
cell death in mammals (apoptosis) to determine if the technology
is applicable in human medicine. Accelerating apoptosis may have
applications to development of cancer treatments. Delaying
apoptosis may have applications to certain diseases such as
glaucoma, ischemia and arthritis, among others. Senesco takes
its name from the scientific term for the aging of plant cells:
senescence. The Company has developed technology that regulates
the onset of cell death.
Delaying cell breakdown in plants extends freshness after
harvesting, while increasing crop yields, plant size and
resistance to environmental stress for flowers, fruits and
vegetables. In addition to its human health research programs,
the Company believes that its technology can be used to develop
superior strains of crops without any modification other than
delaying natural plant senescence. Senesco has partnered with
leading-edge companies engaged in agricultural biotechnology and
earns research and development fees for applying its
gene-regulating platform technology to enhance its partners'
products.
Senesco is headquartered in New Brunswick, New Jersey. |
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