SOURCE: Critical Outcome Technologies Inc. (COTI)

Critical Outcome Technologies Inc. (COTI)

February 18, 2015 08:30 ET

Critical Outcome Technologies Closes Private Placement

Financing Adds Support for the Impending COTI-2 Clinical Trial

LONDON, ON--(Marketwired - February 18, 2015) - Critical Outcome Technologies Inc. (TSX VENTURE: COT) (OTCQB: COTQF) ("COTI" or the "Corporation") announced the closing of a non-brokered private placement of 2,129,374 units (the "Units") at a price of CAD $0.255 per Unit for gross proceeds of approximately $543,000.

"We are pleased to obtain this financing after recently repaying the $400,000 debenture that was due on February 5, 2015," said John Drake, Chairman of the Board. "These funds provide additional support for our operational focus on the clinical trial initiatives planned for COTI-2 in 2015."

"We have enjoyed considerable success with COTI-2 during pre-clinical development and we look forward to commencing our first Phase 1 clinical trial as soon as possible," added Dr. Wayne Danter, President & CEO. "In this regard, we are poised to achieve an important milestone for COTI-2 with the filing of the IND submission with the U.S. Food and Drug Administration for patients with cancers having p53 gene mutations in the near future." 

Each Unit consists of one common share and one common share purchase warrant of the Corporation. Each warrant is exercisable for one common share of the Corporation at an exercise price of $0.38 per share for a period of 60 months from the date of issue. The Corporation paid aggregate finder's fees of $41,399 and issued 162,350 compensation warrants exercisable to acquire one common share at an exercise price of $0.29 for a period of 60 months from the date of issue. The expiry date of both the warrants and compensation warrants will be reduced to a period of 21 days if, for any ten consecutive trading days during the unexpired term of the warrants or the compensation warrants (the "Premium Trading Days"), the closing price of the common shares listed on the TSX Venture Exchange equals or exceeds three times the exercise price of the respective warrants or compensation warrants issued in the Offering. The reduced exercise period will begin seven calendar days after the tenth Premium Trading Day.

The common shares and warrants comprising the Units, as well as the common shares issuable upon the exercise of the warrants are subject to a resale restriction expiring on June 18, 2015, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. 

The offering is subject to final acceptance by the TSX Venture Exchange.

About Critical Outcome Technologies Inc. (COTI)

COTI is a biopharmaceutical company using machine learning to rapidly develop targeted therapies. COTI's proprietary artificial intelligence platform, CHEMSAS®, utilizes a series of predictive computer models to identify compounds with a high probability of being successfully developed from disease specific drug discovery through chemical optimization and preclinical testing. These compounds are targeted for a variety of diseases, particularly those for which current treatments are either lacking or ineffective.

For more information, visit www.criticaloutcome.com.

Follow @CriticalOutcome on Twitter at http://twitter.com/CriticalOutcome

Notice to Readers
Information contained in this press release may contain certain statements, which constitute "forward- looking statements" within the meaning of the Securities Act (Ontario) and applicable securities laws. For example, the statement, "… funds provide additional support for our operational focus on the clinical trial initiatives planned for COTI-2 in 2015" and "…we are poised to achieve an important milestone for COTI-2 with the filing of the IND submission with the U.S. Food and Drug Administration for patients with cancers having p53 gene mutations in the near future" are forward-looking statement. Forward‐looking statements by their nature are not guarantees of future performance and are based upon management's current expectations, estimates, projections and assumptions. COTI operates in a highly competitive environment that involves significant risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward‐looking statements. Management of COTI considers the assumptions on which these forward‐looking statements are based to be reasonable, but as a result of the many risk factors, cautions the reader that actual results could differ materially from those expressed or implied in these forward-looking statements. Information in this press release should be considered accurate only as of the date of the release and may be superseded by more recent information disclosed in later press releases, filings with the securities regulatory authorities or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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