SOURCE: Cellceutix

April 01, 2015 07:00 ET

Cellceutix Enters Into a $30 Million Common Stock Purchase Agreement

Cellceutix Meeting With FDA to Discuss Phase 2 Clinical Trial for Ulcerative Proctitis Treatment; Cellceutix's Abstract on Kevetrin to Be Presented at ASCO

BEVERLY, MA--(Marketwired - Apr 1, 2015) - Cellceutix Corporation (OTC: CTIX) (the "Company"), a clinical stage biopharmaceutical company developing innovative therapies with oncology, dermatology, and antimicrobial applications, is pleased to inform shareholders that Cellceutix has signed a $30 million stock purchase agreement with Aspire Capital Fund, LLC. Pursuant to the Agreement, Aspire has committed to purchase over the next 3 years up to $30 million of Cellceutix's common stock based on the prevailing market prices at the time of each sale. The timing of the purchases will be at the sole discretion of Cellceutix. Aspire Capital has previously provided the Company with $30 million in equity capital in two similar transactions. Additional details of the Agreement with Aspire Capital have been filed in a Report on Form 8-K with the U.S. Securities and Exchange Commission.

"We are pleased to continue our successful, long-term relationship with Cellceutix by entering into a new $30 million transaction," said Steven G. Martin, Managing Member of Aspire Capital Fund, LLC. "Over the last several years, Aspire Capital has completed two similar transactions with the Company totaling $30 million. During that time, Cellceutix has made tremendous progress in advancing the development of its key assets including Brilacidin, Kevetrin, and Prurisol. We were pleased with the results from the phase 2B trial of Brilacidin for ABSSSI. We are also pleased to see Kevetrin showing promising signs of activity and tolerability. We continue to believe in the Company's potential and are excited about the upcoming milestones in 2015." 

Cellceutix is pleased to announce that the Food and Drug Administration ("FDA") has approved the Company's request for a pre-Investigational New Drug ("IND") meeting to discuss the clinical development of a topical defensin-mimetic compound for the indication of induction of remission of ulcerative proctitis. Cellceutix intends to initiate a Phase 2 clinical trial of its unique defensin-mimetic compound for ulcerative proctitis, an idiopathic mucosal inflammatory disease and form of ulcerative colitis involving only the rectum or the distal colon and rectum (proctosigmoiditis). The meeting with the FDA is scheduled to take place at the end of April.

Additionally, Cellceutix announced that the Scientific Program Committee of the American Society of Clinical Oncology ("ASCO") has selected for presentation Cellceutix's abstract on the Phase 1 clinical trial of Kevetrin for treatment of advanced solid tumors being conducted at Harvard's Dana-Farber Cancer Institute and Beth Israel Deaconess Medical Center. The abstract was selected from nearly 6,000 abstracts and will be presented at the 2015 ASCO Annual Meeting, May 29 - June 2, 2015 at the McCormick Place Convention Center in Chicago, Illinois.

Cellceutix will provide shareholders with a comprehensive update on its NASDAQ uplisting status and clinical trials during April 2015.

"I am very satisfied by the continuity of developments across all aspects of our company, which I attribute to the efforts and quality of our pipeline, staff, and partners," commented Leo Ehrlich, Chief Executive Officer at Cellceutix. "Our lab studies have us extremely optimistic that a novel defensin-mimetic can have a meaningful effect for patients in the multi-billion-dollar gastrointestinal disorders market and the meeting with the FDA is an important step in initiating a clinical trial. We have a tremendous long-term investor in Aspire, who has been responsible for $30 million in capital raises previously and has now committed to another $30 million. Those funds, coupled with the more than $10 million we have in the bank puts Cellceutix in a strong financial position." 

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About Cellceutix:
Headquartered in Beverly, Massachusetts, Cellceutix is a publicly traded company under the symbol "CTIX". Cellceutix is a clinical stage biopharmaceutical company developing innovative therapies in oncology, dermatology and antimicrobial applications. Cellceutix believes it has a world-class portfolio of compounds and is now engaged in advancing its compounds and seeking strategic partnerships. Cellceutix's anti-cancer drug Kevetrin is currently in a Phase 1 clinical trial at Harvard Cancer Centers' Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center. In the laboratory Kevetrin has shown to induce activation of p53, often referred to as the "Guardian Angel Gene" due to its crucial role in controlling cell mutations. Cellceutix will soon begin a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention of Oral Mucositis in patients with head and neck cancer. Brilacidin-OM, a defensin mimetic compound, has shown in an animal model to reduce the occurrence of severe ulcerative oral mucositis by more than 94% compared to placebo. Cellceutix's anti-psoriasis drug Prurisol has recently completed a Phase 1 clinical trial and is being readied for a Phase 2 trial. Prurisol is a small molecule that acts through immune modulation and PRINS reduction. Cellceutix's lead antibiotic, Brilacidin, has completed a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infections, or ABSSSI. Top-line data have shown a single dose of Brilacidin to deliver comparable clinical outcomes to the FDA-approved seven-day dosing regimen of daptomycin. Brilacidin has the potential to be a single-dose therapy for certain multi-drug resistant bacteria (Superbugs). Cellceutix has formed research collaborations with world-renowned research institutions in the United States and Europe, including MD Anderson Cancer Center, Beth Israel Deaconess Medical Center, and the University of Bologna. More information is available on the Cellceutix web site at www.cellceutix.com.

Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that could cause Cellceutix's actual results and experience to differ materially from anticipated results and expectations expressed in these forward looking statements. Cellceutix has in some cases identified forward-looking statements by using words such as "anticipates," "believes," "hopes," "estimates," "looks," "expects," "plans," "intends," "goal," "potential," "may," "suggest," and similar expressions. Among other factors that could cause actual results to differ materially from those expressed in forward-looking statements are Cellceutix's need for, and the availability of, substantial capital in the future to fund its operations and research and development; including the amount and timing of the sale of shares of common stock to Aspire Capital; the fact that Cellceutix's compounds may not successfully complete pre-clinical or clinical testing, or be granted regulatory approval to be sold and marketed in the United States or elsewhere. A more complete description of these risk factors is included in Cellceutix's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. Cellceutix undertakes no obligation to release publicly the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.

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    Leo Ehrlich
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