SOURCE: Omni Bio Pharmaceutical, Inc.
DENVER, CO--(Marketwired - Apr 24, 2014) - Omni Bio Pharmaceutical, Inc. ("Omni Bio") (OTCQB: OMBP), a biopharmaceutical company focused on the commercialization of alternative uses of alpha-1 antitrypsin (AAT) for the treatment of a variety of indications and the development of next-generation recombinant forms of AAT, today announced finalization of a private financing arrangement led by its principal investor, Bohemian Investments LLC ("Bohemian"), that establishes a credit facility for up to $3 million to support ongoing operations and execution of the development plan for Omni Bio's lead Fc fusion recombinant AAT molecule (Fc AAT) that is being targeted for the treatment of Type 1 diabetes, graft versus host disease and various inflammatory conditions, including chronic gout. The most immediate use of proceeds will be for cell line optimization and product manufacturing scale-up work to be performed by a contract manufacturing partner soon-to-be announced.
The Company is also announcing the engagement of Dawson James Securities, Inc ("Dawson James") to advise and assist in the Company's capital market activities and ongoing capitalization strategies under the assumption of successful Fc AAT manufacturing scale-up efforts. Services to be provided will include options for further fund raising, strategic messaging, communications planning and pre-investment marketing.
Dr. Bruce E. Schneider, CEO of Omni Bio, commented, "We are extremely pleased to have secured the private financing deal with the Bohemian group. Their continuing support for the Company is very gratifying and now provides us with the means to execute critical next steps in the development of Fc AAT. We are also very fortunate to have entered into an advisory services agreement with Dawson James who are clearly among the leaders in early-stage life science company investment banking. We expect that their advice and counsel will result in an efficient strategy for meeting Omni Bio's future funding needs."
About the Private Financing
The newly announced credit facility secures up to $2 million in additional financing from Bohemian and enables an additional $1 million in like funding from other sources yet to be secured. Financing will be in the form of a one-year note that is convertible into common stock of Omni Bio. The Company will also issue Bohemian and certain of its affiliates warrants to purchase up to four million shares of common stock and has agreed to extend and reset the price of all warrants currently held by BOCO Investments LLC.
About Alpha-1 Antitrypsin (AAT)
AAT is the most abundant circulating serine protease inhibitor in the body and an acute phase reactant. Systemic deficiency in AAT due to genetic mutations can result in debilitating liver failure and chronic lung disease such as emphysema. Lifelong treatment with plasma-derived AAT, intravenously administered, is indicated for such patients. Recent evidence suggests that AAT plays an important role in modulating immunity, inflammation and apoptosis. AAT protects various cell types from cell death, inhibits caspases-1 and -3 activity and has been shown to be effective in a wide variety of animal models of human disease, including diabetes, graft versus host disease (rejection reactions following bone marrow or other transplantation procedures), refractory gout, myocardial infarction and inflammatory bowel disease.
About Omni Bio Pharmaceutical, Inc.
Omni Bio Pharmaceutical (www.omnibiopharma.com) is a biopharmaceutical company that is focused on alternative uses for AAT and on developing new recombinant forms that can be applied to the treatment of a broad range of indications as noted above. The Company holds licenses to patents and patent applications licensed from the University of Colorado and a privately held company. Since its formation, Omni Bio has supported research using animal models and human clinical studies that demonstrate that AAT is a promising agent for ameliorating these conditions. The Company is now focused on the development of a recombinant AAT Fc fusion molecule as a new biological entity.
Some of the statements made in this press release are forward-looking statements that reflect management's current views and expectations with respect to future events. These forward-looking statements are not a guarantee of future events and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. These risks and uncertainties are based on a number of factors, including but not limited to the business risks disclosed in our SEC filings, especially the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.