MONMOUTH JUNCTION, N.J., Dec. 13, 2005 (PRIMEZONE) -- VioQuest Pharmaceuticals (OTCBB:VQPH) will receive approximately $500,000 from the sale of its Net Operating Losses (NOLs) pursuant to an agreement with the New Jersey Economic Development Authority (EDA) through its Technology Business Tax Certificate Transfer Program.
VioQuest Pharmaceuticals will sell its unused NOLs to corporate taxpayers and anticipates receiving approximately $250,000 in 2005 and $250,000 in 2006.
"This source of non-dilutive funds, added to the $8.4 million we raised in our October financing, puts VioQuest on solid financial footing as we head into the New Year," said Daniel Greenleaf, VioQuest's Chief Executive Officer.
"The tax certificate program is one of the more effective financing tools used by New Jersey technology and life sciences companies like VioQuest Pharmaceuticals to strengthen and build their businesses," said EDA Chief Executive Officer Caren S. Franzini. "There is $60 million available annually through the program, which enables qualified companies to sell tax losses or research and development credits to raise cash to finance their growth and operations."
About the New Jersey Economic Development Authority
From low-cost financing, tax credits and business incentives to customized laboratory and office space and entrepreneurial training and mentoring assistance, the EDA is an independent, self-supporting state entity that offers a continuum of resources and services to meet the specialized needs of life sciences and technology businesses in New Jersey.
About VioQuest Pharmaceuticals, Inc.
VioQuest Pharmaceuticals, Inc.'s strategy is to acquire, develop, and commercialize targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. The Company is developing two novel anti-cancer agents VQD-001 and VQD-002 for the treatment of melanoma, myeloma, lymphoma; and breast, ovarian, pancreatic, colorectal cancers, respectively. VioQuest's life science subsidiary, Chiral Quest, Inc., a pioneer in asymmetric synthesis, offers proprietary chiral catalysts and synthesis expertise for creating important chiral intermediates and products, which improves the safety, efficacy and manufacturing efficiency of pharmaceutical products. Through Chiral Quest, VioQuest provides products and services to fine chemical manufacturers and twelve of the top eighteen pharmaceutical companies worldwide. For more information please visit www.vioquestpharm.com.
Forward-Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest's actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of VioQuest's research programs and compounds will be successfully commercialized. Risks, uncertainties and assumptions also include the possibility that the market for the sale of certain products may not develop as expected; and that development of these products may not proceed as planned. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2004. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.