IsoRay Inc. (AMEX: ISR) has entered a securities purchase agreement with an investor to sell $2.25 million in common stock with the potential of $2,075,000 additional funding through two subsequent short term warrant tranches of 90 days and 180 days assuming an average exercise price of $1.40 and that all Series A and B warrants are exercised. Additional funding will occur if Series C or D warrants are exercised. This funding is in addition to the previously announced grant award of $526,910 from the IRS Qualifying Therapeutic Discovery Program as well as the sale of over $600,000 in common stock and exercised warrants. The IRS Qualifying Therapeutic Discovery Program provides financial support for innovative projects that the U.S. Department of Health and Human Services believes could well result in a new therapy, reduce health care costs, or represent an important advance in finding a cure for cancer.
IsoRay expects to advance a number of significant initiatives with a portion of the net proceeds from the financing. Some of the funds will be used to support the Company's manufacturing and inventory of the GliaSite® radiation therapy system, the world's only FDA-cleared balloon catheter device used in the treatment of brain cancer. The Company expects to bring it to market in mid-year 2011.
Funding will also be used to enhance data collection for the multi-institutional study of Cesium-131 internal radiation therapy, which is expected to further the groundbreaking therapy's use in treating Non Small Cell Lung Cancers (NSCLC). The potential is noteworthy as lung cancer remains the leading cause of cancer deaths worldwide.
On another front, the Company expects funding to spur progress in the application of Cesium-131 for the treatment of breast cancer. IsoRay recently completed an initial feasibility study which demonstrates the ability to use its patented Cesium-131 internal radiation therapy in accelerated partial breast irradiation (APBI) for breast cancer treatment. APBI is one of the most exciting, emerging treatments available, today, for early stage, localized breast cancer. This new application of Cesium-131 is expected to have a significant impact in the treatment of breast cancer and improve the quality of life for many women who have been diagnosed with the disease.
With established CMS codes, Cesium-131 is FDA-cleared for use in the treatment of cancers throughout the body including breast cancer. More than 100 centers across the country are using Ceium-131 to treat brain, colon, head and neck, lung, ocular melanoma, and prostate cancers.
LifeTech Capital, a Division of Aurora Capital, LLC, acted as the exclusive placement agent in connection with this offering.