WORCESTER, Mass. and TORONTO, Jan. 25, 2012 /PRNewswire/ -- Generex Biotechnology Corporation (OTCBB: GNBT) announced today that it has secured two commitments for an aggregate capital raise of CA$3,600,000. This funding is structured as term loans of one year from private lenders secured by the Company's real estate. Interest on the loans is payable monthly at the rate of 10% per annum.
"This capital infusion will permit the Company to advance its redevelopment plans, and to do so in a manner that is not dilutive to our stockholders," commented Mark Fletcher, Generex's President & Chief Executive Officer.
The first loan, for an aggregate of CA$2,500,000, closed on January 19, 2012. A portion of the Company's real estate is subject to a prior ranking mortgage in the approximate amount of CA$1,100,000. A portion of the first loan equal to that amount has been placed in escrow pending discharge of the prior ranking mortgage.
The second loan, for an aggregate of CA$1,100,000, is designed to discharge the prior ranking mortgage. The second loan is scheduled to close on or before January 30, 2012, whereupon the escrowed portion of the first loan will be released to the Company.
About Generex Biotechnology Corporation
Generex is engaged in the research, development, and commercialization of drug delivery systems and technologies. Generex has developed a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs). The Company's proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company's proprietary RapidMist™ device. Antigen Express, Inc. is a wholly owned subsidiary of Generex. The core platform technologies of Antigen Express comprise immunotherapeutic vaccines for the treatment of
|SOURCE Generex Biotechnology Corporation|
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