NEW YORK, NY / CRWEPRESSRELEASE / September 21, 2015 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update note on DelMar Pharmaceuticals, Inc. (OTCMKTS:DMPI), a biotechnology company focused on proven cancer therapies in new orphan drug indications where patients are failing modern targeted or biologic treatments.
The note is available here: DMPI September 2015 Update. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
“The raise included existing investors and new investors, consisting of 4.3mn common shares priced at $0.60, which we estimate increases the company’s total shares outstanding to 43.7mn. Additionally, the placement has the potential for further cash, with participating investors also acquiring 4.3mn 5-year warrants with a strike price of $0.75. Although we acknowledge the potential dilution from the warrants, in our view it was necessary for DelMar to secure funding for its 2016E operating plan to ensure that it can continue to advance its lead product, VAL-083 into a registration-directed Phase II/III trial for the treatment of refractory GBM, the most deadly form of brain cancer. We are maintaining our 12 month price target of $4.53 per share,” commented Ajay Tandon, CEO of SeeThruEquity.
Additional highlights from the update note are as follows:
$2.6mn placement shores balance sheet
On August 20, 2015, DelMar announced that it had completed a $2.6mn registered direct placement. The move shores up the company’s balance sheet, which had $1.8mn in cash and no debt at the end of the June quarter. The placement consisted of 4.3mn shares priced at $0.60, and offers potential future funding in the form of 4.3mn warrants, which have a five-year term and a strike price of $0.75.
Proceeds to be used for registration-directed Phase II/III trial
DelMar management noted that the offering should provide the company with capital to help fund operations in 2016E, allowing DelMar to maintain its focus on advancing its lead product, VAL-083, into a registration-directed Phase II/III clinical trial for the treatment of GBM, the most common and deadly form of brain cancer. The move is consistent with the plans outlined by management to expand its cohort following the encouraging clinical data released earlier this year from its ongoing Phase I/II trial, which suggested that VAL-083 may be highly efficacious against both stem and non-stem GBM cell cultures.
Expansion of Non-dilutive funding from NRC-IRAP
The completion of the $2.6mn direct placement followed positive news announced on August 13, 2015, that DelMar had received an increase in funding of up to CDN$287,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP). The funding is non-dilutive for DelMar, and is intended to support and expands an ongoing project studying potential applications of VAL-083 in other cancerous tumor types beyond its current Phase I/II refractory GBM clinical trial into non-small cell lung cancer (NSCLC) and other solid tumors. We see the announcement as a positive step for DelMar and note that it brings total funding from NRC-IRAP to CDN$420,000 – following earlier funding used in collaboration with University of British Columbia, the Vancouver Prostate Center, and the B.C. Cancer Agency.
DelMar to investigate VAL-083 as treatment for ovarian cancer
This week DelMar announced that it was expanding the potential treatment areas of VAL-083 to include ovarian cancer. The company has conducted new research with researchers at MD Anderson, and expects to present its findings at American Association for Cancer Research’s October conference: Advances in Ovarian Cancer Research: Exploiting Vulnerabilities.
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About DelMar Pharmaceuticals, Inc.
DelMar Pharmaceuticals was founded in 2010 to develop and commercialize proven cancer therapies in new orphan drug indications where patients are failing modern targeted or biologic treatments. The Company’s lead asset, VAL-083, is currently undergoing clinical trials in the United States as a potential treatment for refractory glioblastoma multiforme (GBM), the most common and aggressive form of brain cancer. VAL-083 benefits from extensive clinical research sponsored by the U.S. National Cancer Institute (NCI), and is currently approved for the treatment of chronic myelogenous leukemia (CML) and lung cancer in China. Published pre-clinical and clinical data suggest that VAL-083 may be active against a range of tumor types via a novel mechanism of action. For more information, please visit http://www.delmarpharma.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.