VANCOUVER, British Columbia and MENLO PARK, Calif., Jan. 25, 2013 /PRNewswire/ -- DelMar Pharmaceuticals, Inc. (OTCQB: BRRY) ("DelMar") today announced the successful acquisition (the "Acquisition"), through a share exchange agreement, of all of the outstanding shares of Del Mar Pharmaceuticals (BC) Ltd., a clinical and commercial stage drug development company with a focus on the treatment of cancer. Concurrent with the Acquisition, DelMar completed the first closing in a private placement consisting of approximately 6.7 million units of its securities to qualified accredited investors, for total gross proceeds of approximately $5.4 million.
DelMar will be quoted on the OTC QB under the symbol "BRRY" beginning January 25th, 2013; the symbol will be changed to "DMPI" on or about January 31, 2013.
Charles Vista LLC acted as the company's placement agent in the unit offering. Each unit consists of one share of common stock and one common stock purchase warrant.
"DelMar is pleased to achieve this important milestone," stated Jeffrey Bacha, Chief Executive Officer of DelMar. "Becoming a publicly traded company will allow for broad and diversified investor exposure and access to the capital markets. These funds will position us to expand and accelerate our drug development activities with our lead drug candidate, VAL-083. Our company and our management are committed to creating shareholder value by executing on our mission to rapidly develop and commercialize proven cancer therapies in new orphan drug indications in areas of significant unmet medical need, particularly where patients have failed modern targeted medicines."VAL-083, represents a "first in class" small-molecule chemotherapeutic, which means that the molecular structure of VAL-083 is not an analogue or derivative of other small molecule chemotherapeutics approved for the treatment of cancer. VAL-083 has been assessed in multiple clinical studies sponsored by the National Cancer Institute (NCI) in the United States as a treatment against various cancers including lung, brain, cervical, ovarian tumors and leukemia. Published pre-clinical and clinical data suggest that VAL-083 may be active against a range of tumor types. VAL-083 is approved as a cancer chemotherapeutic in China for the treatment of chronic myelogenous leukemia and lung cancer. DelMar is currently conducting a Phase I/II clinical trial with VAL-083 as a potential new treatment for glioblastoma multiforme (GBM), the most common and aggressive form of brain cancer. In April 2012, DelMar presented data at the American Association of Cancer Research (AACR website: http://www.aacr.org) annual meeting demonstrating that VAL-083 maintains activity in tumors resistant to the current front-line GBM therapy, Temodar ®. In November 2012, DelMar presented interim data from the ongoing GBM clinical trial at the Annual Meeting of the Society for NeuroOncology (SNO website: http://www.soc-neuro-onc.org) demonstrating that VAL-083 can shrink or halt the growth of tumors in brain cancer patients who have failed other approved treatments. Currently, there is no approved therapy for these patients. In addition to the Company's clinical development activities in the United States, DelMar has obtained exclusive commercial rights to VAL-083 in China. In October 2012, DelMar announced a collaboration agreement with the only manufacturer presently licensed by the Chinese State Food and Drug Administration (SFDA) to produce VAL-083 for the China market. This agreement provides DelMar with exclusive commercial rights and the potential to generate near-term revenue through product sales or royalties for the approved indications in China while seeking global approval in new indications. DelMar will continue the business of DelMar Pharmaceuticals (BC) Ltd., headquartered in Vancouver, British Columbia with clinical operations in Menlo Park, CA, as a subsidiary under the leadership of DelMar Pharmaceuticals (BC) Ltd.'s current management team, headed by Chief Executive Officer Jeffrey Bacha. In connection with the Acquisition, DelMar issued to the former shareholders of DelMar Pharmaceuticals (BC) Ltd. the equivalent of 13,070,000 shares of its common stock. Details of the transaction will be filed on a Form 8-K with the United States Securities and Exchange Commission. The securities sold in the private placement have not been registered under the Securities Act of 1933 and may not be resold absent registration under or exemption from such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933.