[GRAPHIC OMITED]
PROGEN
INDUSTRIES LIMITED
UNDERWRITING AGREEMENT SIGNED FOR PROGEN LISTED OPTIONS
BRISBANE, AUSTRALIA MONDAY MAY 16, 2005 Progen Industries Limited (ASX: PGL,
NASDAQ: PGLAF) today announced that it has signed an Underwriting Agreement in
relation to the ASX listed Options expiring on 31 May 2005 with Emerging Growth
Capital Pty Limited, (eG Capital). Accordingly, and provided all conditions of
the Underwriting Agreement are met, eG Capital will take up any shortfall that
exists if any of the listed Options (ASX:PGLO) remain unexercised following the
expiry date.
The exercise of these options will provide an additional $8.93 million in equity
funding to the Company. The Company currently has $13.50 million in cash
reserves, with the additional funding flowing from the exercise of these Options
the Company will be in a strong cash position. Under the terms of the
Underwriting Agreement Progen will pay the Underwriter a 5% commission on the
transaction totalling $446,000.
Xxxxxxx Xxxxx, Xxxxxx's Executive Chairman, commented "We are pleased to have
secured this Underwriting Agreement and appreciate EG Capital's support in what
is currently a difficult market environment. It is especially encouraging given
eG Capital is a specialist biotechnology investment bank and that they recognize
the long-term value that Progen is trying to build. The additional cash that
will be provided will be put to good use and would put us in a strong financial
position and allow us greater scope to realize our goals. These goals include
further funding for the clinical programs and PI-88 scale-up manufacture and
validation, maintaining a strong cash position during our partnering
initiatives, in-licensing new potential pipeline products, funding our
continuing Drug Design efforts and pursing corporate opportunities for growth."
All of the Directors intend to exercise their listed and unlisted May Option
holdings. These transactions will be announced separately and as required in
the next few days.
ABOUT PROGEN:
Progen Industries Limited is an Australian based globally focused biotechnology
company committed to the discovery, development and commercialisation of small
molecule pharmaceuticals for the treatment of cancer and other serious diseases.
Progen's three key areas of focus are:
- CLINICAL DEVELOPMENT - via a focused clinical trial programme involving
its two compounds PI-88 and PI-166.
- DRUG DISCOVERY - projects focusing on the development of potent, selective
inhibitors of carbohydrate-protein interactions, which are implicated in
many disease processes.
- COMMERCIAL SERVICES - manufacturing of biopharmaceutical products to
global standards.
KEYWORDS - Progen, cancer, melanoma, drug discovery, PI-88, angiogenesis,
heparanase,
WEB LINKS TO SELECTED RECENT NEWS AND OTHER INFORMATION ABOUT PROGEN:
Open Briefing: MD on strategy xxx.xxxxxx.xxx.xx/?xxxxxxxxxxxx0000.xxxx
----------------------------------------
Half Year Financial Release xxx.xxxxxx.xxx.xx/?xxxxxxxxxxxx0000.xxxx
----------------------------------------
Scientific Advisory Board for Discovery xxx.xxxxxx.xxx.xx/?xxxxxxxxxxxx0000.xxxx
----------------------------------------
AGM Managing Director's Address xxx.xxxxxx.xxx.xx/?xxxxxxxxxxxx0000.xxxx
----------------------------------------
PI-88 Receives Orphan Drug Designation xxx.xxxxxx.xxx.xx/?xxxxxxxxxxxx0000.xxxx
----------------------------------------
PI-88 mode of action xxx.xxxxxx.xxx.xx/?xxxxxxxxx-00.xxxx
------------------------------------
Progen's drug development pipeline xxx.xxxxxx.xxx.xx/?xxxxxxxxxxx.xxxx
-----------------------------------
Progen Industries Ltd xxx.xxxxxx.xxx.xx
-----------------
CONTACTS:
PROGEN INFORMATION:
Xxxxxx Xxxxx Xxxxx Xxx
Chief Financial Officer Managing Director
Progen Industries Limited Progen Industries Limited
Xxxxxx.Xxxxx@xxxxxx.xxx.xx Xxxxx.Xxx@xxxxxx.xxx.xx
-------------------------- -----------------------
Ph: 00 0 0000 0000 Ph: 00 0 0000 0000
This press release contains forward-looking statements that are based on current
management expectations. These statements may differ materially from actual
future events or results due to certain risks and uncertainties, including
without limitation, risks associated with drug development and manufacture,
risks inherent in the extensive regulatory approval process mandated by the
United States Food and Drug Administration and the Australian Therapeutic Goods
Administration, delays in obtaining the necessary approvals for clinical
testing, patient recruitment, delays in the conduct of clinical trials, market
acceptance of PI-88, PI-166 and other drugs, future capitals needs, general
economic conditions, and other risks and uncertainties detailed from time to
time in the Company's filings with the Australian Stock Exchange and the United
States Securities and Exchange Commission. Moreover, there can be no assurance
that others will not independently develop similar products or processes or
design around patents owned or licensed by the Company, or that patents owned or
licensed by the Company will provide meaningful protection or competitive
advantages.
