Houston Based Biotech Company Oncolix Goes Public


On Monday, Oncolix a biotech company that is developing a treatment for ovarian cancer announced it has completed a reverse merger with Advanced Environmental Petroleum Producers (OTCMKTS: AEPP), now making it a public company.
The Houston-based Oncolix currently has continuing a Phase I clinical trial in ovarian cancer patients for its prospective therapy, G129R (Prolanta). Oncolix reported it plans to target other solid tumor signals such as breast, prostate, and other cancers. The FDA has approved an orphan drug designation for the drug, the company added.
There is a total of 71.8 million shares of AEPP common stock that was issued to the former common stock holders of Oncolix and 62.1 million shares of AEPP Series A preferred stock were issued to the former preferred stock holders of Oncolix. Each share of Series A preferred stock issued by AEPP is convertible into one share of AEPP common stock. With the merger and recapitalization, Oncolix has become a wholly-owned subsidiary of AEPP.
Also, the company announced that it has secured $2 million private placement of debt securities. Newbridge Securities, through LifeTech Capital, acted as lead placement agent for the offering and as financial advisor for the merger. Before to the merger, Oncolix had raised more than $15 million in venture funding.
The reverse merger is a non-traditional way for companies to go public and has been a path chosen by many Texas biotech companies as of late. Last month, Opexa therapeutics was the target of a such a transaction with Acer Therapeutics, a privately held pharmaceutical company in Boston, MA. In May, Synologic took over Austin, TX-based Mirna Therapeutics, whose drugs did not make it past Phase I trials.


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