NEW BRUNSWICK, N.J., July 30 /PRNewswire-FirstCall/ -- Senesco Technologies, Inc. ("Senesco" or the "Company") (NYSE Amex: SNT) today announced that, on July 29, 2009, the Company entered into definitive purchase agreements with certain members of Senesco's Board of Directors and certain accredited investors, including Cato Holding Company, which is the venture capital affiliate of Cato Research Ltd., a global contract research and development organization currently assisting Senesco with its SNS-101 development program with the emphasis on initiating a Phase I clinical trial for multiple myeloma.
Pursuant to the respective purchase agreements, Senesco will issue and sell (i) up to 783,332 shares of its common stock (the "Shares") at a price of $0.90 per share, (ii) warrants to purchase an aggregate of up to 705,000 shares of common stock, which warrants are exercisable immediately at an exercise price of $0.01 per share (the "Series A Warrants") and (iii) warrants to purchase an aggregate of up to 714,794 shares of common stock, which warrants are exercisable 6 months from the date of issuance at an exercise price of $0.60 per share (the "Series B Warrants"). In connection with the private placement, the Company anticipates that it will receive aggregate proceeds, excluding costs and expenses, in the amount of $530,000. In addition, Cato Holding Company has agreed to cancel $175,000 of the Company's indebtedness to Cato Research, Ltd., bringing the proceeds of the offering, excluding costs and expenses, to approximately $705,000.
The closing of the foregoing transactions is contingent upon Senesco receiving stockholder approval for certain aspects of the transactions as well as other customary closing conditions. There are no registration rights associated with the securities to be issued and sold in the private placement and no placement agent was used in connection with the private placement.
Senesco primarily intends to utilize the net proceeds of these transactions to further advance its multiple myeloma research and development program with the goal of initiating a Phase I clinical trial.
"We are excited by the potential of SNS-101 as a novel treatment alternative for multiple myeloma," said Allen Cato, MD, PhD, CEO of Cato Research. "Our recent investment reflects our confidence in the Company's regulatory and development plans. We look forward to significant progress in the months ahead."
"We are gratified by the confidence expressed in us by our CRO, the Board members and accredited investors involved in this transaction," commented Joel Brooks, Chief Financial Officer.
