Securities commissions in three Canadian provinces _ Alberta,Ontario and British Columbia _ have approved the final prospectus ofReceptagen Ltd. (ASE:RCG). The approval allows for the distributionof 5 million special warrants, already privately placed, to the company.The offering raised Canadian $9.3 million (U.S. $6.7 million) net forReceptagen.Charles Morgan, Receptagen's president and chief technical officer,said these actions were a prelude to the company's seeking a listing onthe Toronto Stock Exchange. In the Canadian system, he explained, acompany seeking to raise money publicly arranges a private placement.Some of the funds raised are released to the company when theoffering is concluded. The rest are placed in escrow and released to thecompany after the provincial securities commissions have approved theprospectus. Usually one province's commission takes the lead role, butthe others involved must pass on the prospectus too.Founded in 1992, Receptagen has two products in development:growth blockers to treat cancer and other diseases marked byuncontrolled cell proliferation; and Coenzyme Q10 (CoQ10), amolecule needed for the body's cells to make energy. Morgan said thefunds raised will be used to support clinical trials of these products andto provide working capital for the next 24 months.Absence of CoQ10, which occurs naturally in the body, contributes tothe loss of immune cells and immune function, especially in AIDSpatients. Morgan said a progressive loss of CoQ10 has been observedin AIDS patients as the disease progresses. Receptagen is in Phase Itrials of its CoQ10 product.Receptagen's growth blockers are intended to be a replacement forchemotherapeutic drugs, Morgan said. They are being developed bothas monoclonal antibodies and as small molecule formulations. Thegrowth blockers are still in the pre-clinical phase.Receptagen has a holding company based in Vancouver, BritishColumbia. Its operating division is located in Seattle. _ PhilippaMaister
(c) 1997 American Health Consultants. All rights reserved.