PASADENA, Calif., Oct. 5, 2017 /PRNewswire/ -- Heatwurx, Inc. (OTC: HUWX) ("Heatwurx") today announced that it has closed on an Asset Purchase Agreement (the "Acquisition") with Promet Therapeutics, LLC ("Promet"), a clinical stage biotechnology company that develops innovative drug products.
Following close Heatwurx intends to change its name to Processa Pharmaceuticals Inc. (Processa) and to apply for an appropriate new trading symbol to reflect the new Processa business focus of developing drug products that are intended to improve the survival and/or quality of life for patients who have a high unmet medical need or who have no alternative treatment. Until changed, the common stock will continue to trade on otcmarkets.com under the "HUWX" symbol.
David Young, Pharm.D., Ph.D., has been appointed CEO and interim CFO of Processa. The existing Promet Executive and Development teams have also joined HUWX. The Processa team includes well-seasoned professionals who have worked closely with Dr. Young at Promet, Questcor and other companies and have obtained over 30 FDA approvals.
After closing, as previously reported, the Promet equity holders as a group beneficially own 90% and Heatwurx shareholders as a group beneficially own 10% of the equity of the Company.
Dr. David Young added, "In our continued efforts to develop treatments for patients with high unmet medical needs, the closure of our agreement with Heatwurx is the first big event in many. We have put together an established team, experienced in adding value to companies as they develop the drugs to help patients who have no treatment options, patients who need better treatment options, and/or patients that are not of interest to or discussed by the general public. Since we believe it is important that we work toward helping each patient find appropriate drugs (or treatments) to improve their quality of life and add value for our investors, I am pleased to announce that we have signed an Option License Agreement with CoNCERT Pharmaceuticals for CTP-499, a drug having multiple pharmacological properties that is allowing us to develop it in two conditions where there are no approved treatments at this time."
Boustead Securities, a FINRA registered broker-dealer assisting middle market private and public companies in all areas of capital markets formation, is acting as adviser to the parties in connection with the Acquisition. The parties have raised $2.25 million to support operations and general working capital and will seek to raise a total of at least $8 million in a private equity placement solely to accredited investors, as that term is defined under federal securities laws.
This announcement is neither an offer to sell nor a solicitation to buy the foregoing securities, nor shall there be any offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities referenced in this release have not been registered under the Securities Act of 1933, as amended (the "Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws.
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Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange and Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created by those sections. All statements in this release that are not based on historical fact are "forward looking statements." These statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "proposes" or "planned," "seeks," "may," "will," "expects," "intends," "believes," "should," "would," "could" and similar expressions or the negative versions thereof and which also may be identified by their context, such as references to "products under development". All statements that address operating performance or events or developments that Heatwurx expects or anticipates will occur in the future, raising additional private placement funds, are forward-looking statements. While management has based any forward looking statements included in this release on its current expectations, we will operate in a complex and changing, heavily regulated, domestic and international competitive environment where new and unanticipated risks may arise, and consequently the information on which such expectations were based, such as expectations of Heatwurx's ability accurately to estimate expenses and cash utilization relating to the pre and post-acquisition operations, the ability to raise additional funds when necessary in the future; risks related to research and development activities; the projected size of the potential market for Promet's licensed and internally developed products; unexpected new data, safety and technical issues; regulatory and market developments impacting the pharmaceutical industry; competition; and market conditions, timing of planned and anticipated product deliveries or product introductions, may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements as a result of various factors. Following the Acquisition, we expect to include more information from time to time on potential factors that could affect Heatwurx's financial results in Heatwurx's filings and reports with the Securities and Exchange Commission. We urge you to consider the substantial risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, whether as a result of new information, future events, or otherwise.
SOURCE Heatwurx, Inc.