MabCure closes private placement, converts bridge loan into equity securities

Mar 8 2010

MabCure, Inc. (OTCBB:MBCI) (“MabCure”), a biotechnology company using its proprietary technology to create highly specific monoclonal antibodies (MAbs) for the early detection of cancer, today announced that it has recently completed a private placement in the aggregate amount of $1 million. The amount is comprised of a $500,000 cash investment and the conversion of a $500,000 bridge loan that was made in September 2009, into equity securities (together, the “Investment Transactions”).

“We are very pleased to close this private placement and to convert our bridge loan into equity securities, particularly during challenging times for raising private equity. The funds will provide us with the near-term liquidity we need to sustain our clinical trials program and to grow the business.”

Under the terms of the Investment Transactions, MabCure will issue 2,000,000 units to the investors at a price of $0.50 per unit. Each unit consists of: (i) one share of MabCure common stock; (ii) one two-year non-transferable common stock purchase warrant exercisable at a price of US$0.60 per share; and (iii) one two-year non-transferable common stock purchase warrant exercisable at a price of US$0.70 per share.

The new investment capital will be used by MabCure to pursue its clinical trials in Europe and Asia. Clinical trials to diagnose ovarian cancer are already underway after MabCure signed a clinical research agreement with the Ramathibodi Hospital, Mahidol University in Bangkok, Thailand. The study aims to evaluate MabCure’s panel of anti-ovarian MAbs in diagnosing ovarian cancer in the blood and urine of patients suspected of having the disease.

Dr. Amnon Gonenne, MabCure’s president and CEO commented, “We are very pleased to close this private placement and to convert our bridge loan into equity securities, particularly during challenging times for raising private equity. The funds will provide us with the near-term liquidity we need to sustain our clinical trials program and to grow the business.”