SOLBEC SECURES EQUITY STANDBY FACILITY Summary: • Solbec has secured a 5 year standby funding facility of $5 million from Cornell Capital Partners of the USA. • The facility provides Solbec flexibility in funding its 2005-2006 budget for product development Perth, Australia. 14 April 2005. Solbec Pharmaceuticals Ltd (ASX:SBP) has announced details of a $5,000,000 Standby Equity Agreement with the US-based investment fund, Cornell Capital Partners. Under the facility, Cornell Capital has committed to provide up to $5,000,000 to Solbec at any time over the next 5 years and to be drawn down at Solbec’s discretion by the issue of shares to Cornell Capital. Solbec has the right but not the obligation to utilize the facility and determines the timing of any draw down which unless the parties agree otherwise is limited to $100,000 in any ASX 10 business day period. The price of the shares is 98% of the lowest daily average over the 10 day ASX trading period following a draw down notice, however Solbec sets the minimum price at which the shares are to be issued. A commission of 5% is payable to Cornell Capital upon issue. The innovative facility allows Solbec to further advance and expand its capital projects with financial confidence and without an immediate dilution to existing shareholders. Solbec is likely to activate the facility during 2005 as it progresses into Phase II trials of Coramsine in cancer. The facility allows Solbec to take advantage of a favourable stock price during the term of the facility with access to capital rapidly.
SBP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
