The financing will take place in two closings. In the first closing, investors will purchase $2,000,000 of Series D preferred stock and warrants. The second closing, for which Nasdaq rules requires receipt of shareholder approval, shall cover the remaining $4,500,000 of Series D preferred stock and warrants.
GlycoGenesys intends to use the proceeds from this transaction primarily for funding the costs of enrolling and conducting its phase I/II dose ranging clinical trial for GCS-100LE in multiple myeloma, funding the initiation of its phase I/II dose ranging clinical trial for GCS-100LE in chronic lymphocytic leukemia, manufacturing drug supplies of GCS-100LE for its clinical trial needs through 2005, amongst others.
GCS-100LE is a low ethanol formulation of the drug candidate GCS-100, a unique compound to treat cancer. It is currently being evaluated in a phase I dose escalation trial at Sharp Memorial Hospital, Clinical Oncology Research in San Diego, California and the Arizona Cancer Center in both Tucson and Scottsdale, Arizona.