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Baltimore, MD | Tuesday, April 05, 2011

Champions Oncology (formerly Champions Biotechnology) Completes $9.4 Million Financing

Aug 30 2011 1:40 PM

Champions Oncology, Inc. (OTC: CSBR) (“the Company”, formerly known as Champions Biotechnology, Inc.) announced today it has completed the private placement of 12.5 million shares of its common stock at a price of $0.75 per share, resulting in gross proceeds to the company of $9.4 million.

Proceeds from the financing will be used to invest in:

  • Sales resources dedicated to growing its Personalized Oncology Solutions (POS) and Translational Oncology Solutions (TOS) Businesses.
  • Growing the TumorgraftTM bank to support the current TOS business and to further the Company’s information assets.
  • Lowering the cost and time required to generate results from the TumorgraftTM Technology Platform.
  • And general corporate purposes.

Up to $1.4 million of the proceeds will be used to repurchase shares from certain shareholders in one or more privately negotiated transactions at a discount to $0.75 per share. The Company has utilized $960,000 of this $1.4 million allocation of the proceeds to complete the repurchase of two million shares from a majority shareholder at a price of $0.48 per share.

Concurrent with the closing of the investment, the Company will issue 1,010,000 warrants to certain investors which will entitle the holders to purchase additional common shares at $0.90 per share for a period of five years, following the date of issuance. In addition, purchasers of the shares will have the right to require the Company to repurchase the purchased shares (the “Put Option”) for cash for $0.75 upon a change of control or sale of substantially all of the company’s assets. The Put Option will terminate upon the achievement of certain milestones.

The offer and sale of the shares have not been registered under the Securities Act of 1933, as amended, and the shares may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements. The Company has agreed to file a registration statement covering the resale of the common stock issued in the private placement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor

shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

CHAMPIONS Oncology, Inc.

855 N. Wolfe Street, Suite 619
Baltimore, Maryland 21205 USA.
Tel. 410-369-0365

About Champions Oncology, Inc.

Champions Oncology, Inc. (formerly Champions Biotechnology, Inc) is engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs. The Company’s Tumorgraft™ Technology Platform is a novel approach to personalizing cancer care based upon the implantation of primary human tumors in immune deficient mice followed by propagation of the resulting engraftments, or Tumorgrafts™, in a manner that preserves the biological characteristics of the original human tumor. The Company uses this technology in conjunction with related services to offer solutions for two customer groups: Personalized Oncology Solutions (“POS”) in which physicians and patients looking for information help guide the development of personalized treatment plans, and Translational Oncology Solutions (“TOS”) in which pharmaceutical and biotech companies seeking personalized approaches to drug development can lower the cost and increase the speed of developing new drugs and increasing the adoption of existing drugs. The Company’s Tumorgraft™ Technology Platform consists of processes, physical tumors and information that we use to personalize the development and use of oncology drugs. The Company is building its Tumorgraft™ Technology Platform through the procurement, development and characterization of numerous Tumorgrafts™ within each of several cancer types. Tumorgrafts™ are procured through agreements with a number of institutions in the U.S. and overseas as well as through its POS business. The Tumorgrafts™ are developed and tested through agreement with a United States-based preclinical facility.

The Company provides POS to oncologists by establishing and administering expert tumor panels for their patients to analyze medical records and test results, to assist in understanding conventional and experimental options and to identify and arrange for testing, analysis and study of the patients’ cancer tissues, as appropriate. Additionally, the Company offers Personalized Tumorgraft™ development, drug studies and genome sequencing as part of its POS whereby physicians can evaluate the effects of cancer drugs on their patients’ tumorgrafts and understand the genetic make-up of their patient’s tumor enabling them to better select treatment regimens that may be efficacious to the patient

This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties. Champions Oncology generally uses words such as “believe,” “may,” “could,” “will,” “intend,” “expect,” “anticipate,” “plan,” and similar expressions to identify forward-looking statements. One should not place undue reliance on these forward-looking statements. The Company’s actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology’s Form 10-K for the fiscal year ended April 30, 2011 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology’s future results, levels of activity, performance or achievements may not meet these expectations. The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology’s expectations, except as required by law.

References:

  1. Hidalgo M et al. Activity of gemcitabine in direct patient derived xenografts predicts clinical outcome: validation of an in vivo model for drug development. J Clin Oncol 27:15s, 2009 (suppl; abstr 4528)
  2. Hidalgo M et al. A Pilot Study of Treatment Guided by Personalized Tumorgrafts in Patients with Advanced Cancer. Mol Cancer Ther August 2011 10:1311-1316
  3. Rubio-Viqueira B, Jimeno A, Cusatis G, et al. An in vivo platform for translational drug development in pancreatic cancer. Clin Cancer Res. 2006;12:4652-4661.
  4. Champions data on file.