AVAX Technologies, Inc. Closes Bridge Financing

PHILADELPHIA, Dec. 16 /PRNewswire-FirstCall/ -- AVAX Technologies, Inc. (Pink Sheets: AVXT) ("AVAX" or the "Company") today announced that it recently closed a bridge loan financing (the "2009 Financing") pursuant to a Convertible Note and Warrant Purchase Agreement (the "Agreement") with Firebird Global Master Fund, Ltd., ("Firebird"). Pursuant to the Agreement, the Company sold a convertible promissory note, due June 30, 2010, in the aggregate principal amount of US$1,400,000, and issued a warrant to purchase an aggregate of 93,333,333 shares of the Company's common stock, par value $0.004 per share. Assuming the conversion of all shares underlying its convertible securities and the exercise of its warrants, Firebird would control a majority voting interest in the Company and it currently has a majority beneficial interest in AVAX.

The proceeds of the 2009 Financing are being used: (i) for working capital; (ii) to recertify and operate AVAX's vaccine manufacturing facility in Philadelphia, PA; and (iii) to pursue a recapitalization in an amount that would enable AVAX to undertake a planned interim assessment in connection with its pivotal Phase III clinical trial of M-Vax® for the treatment of Stage IV melanoma.  M-Vax® has been designated as an orphan drug by the Food and Drug Administration ("FDA") and AVAX has reached  agreement  with the FDA under its Special Protocol  Assessment for eligibility to receive accelerated approval of M-Vax®.

The Company has also announced the addition of two additional Board members: Howard S. Fischer, a former portfolio manager/research analyst with Silverback Asset Management's Life Sciences fund and previously a senior investment banker with UBS Global Healthcare Investment banking, and Anne T. Kavanagh, former head of healthcare investment banking at PaineWebber and Prudential Securities, CEO of Natwest Securities and a current Board of Directors member of Destination Maternity (Nasdaq: DEST).

John Prendergast , Chief Executive Officer and Chairman of the Company, stated, "We have always believed the data, science and economics surrounding M-Vax® to be compelling and we were disappointed in 2007 when the capital markets for cancer immunotherapies all but closed after the FDA did not approve Dendreon's Provenge®.  While the clinical data surrounding our technology had proved to be promising, and only months before the FDA's Dendreon decision we raised $10 million in support of our clinical program, we were forced thereafter to substantially scale back operations because of financing considerations.  We are grateful for Firebird's continued support, which will provide us the opportunity to pursue a capital raise allowing us to conduct our pivotal Phase III M-Vax® trial to its planned interim assessment point.  Recent and anticipated news by companies involved with cancer vaccines and immunotherapies has resulted in renewed interest in the sector by institutional investors, larger pharma, biotechnology companies and the medical and scientific communities at large.  We believe that once AVAX is reintroduced to those involved in our industry, they will find the opportunities presented by the Company to be quite compelling."  Dr. Prendergast further commented, "We are delighted to have Anne Kavanagh and Howard Fischer join our Board.  Their backgrounds and capabilities will greatly assist the Company reach its next important set of milestones, and to reestablish itself in the capital markets."