Tomahawk, WI 2/25/2014 (Basicsmedia) – Nuvilex Inc. (OTCMKTS:NVLX) received a much needed boost after entering into a stock purchase agreement with Lincoln Park capital fund. Under the agreement the, Chicago institutional investor will purchase Nuvilex 8 million share at a price target of $0.25 for 2 million and commit to be the sole option of Nuvilex whenever called upon.  Lincoln Park capital fund has offered an additional $25 million of equity capital for the term of the agreement which is estimated to be 36 months.

Nuvilex plans for the investment

Nuvilex Inc. (OTCMKTS:NVLX) plans to use the proceeds of the investment for its latest stage trials of inoperable pancreatic cancer, some of the proceeds will also be used for the research on the use of marijuana constituents in emerging medical filed and for operational expenses. Nuvilex chief executive officer has been buoyed by the agreement as it essentially gives the company the much needed flexibility to access capital for a given period of time. The investment also bolsters the company’s plans to develop advanced treatments for cancer and diabetes

Terms of the agreement

The terms of the agreement involves no setting of upper limits on the prices that Lincoln Park capital fund may opt to purchase any amount of Nuvilex stock. The agreement maintains that the stock prices will mainly be determined by the prevailing price of Nuvilex shares. Lincoln on its part has agreed not to engage in short selling or hedging Nuvilex shares.

The stock purchase agreement on the other hand might be terminated by Nuvilex Inc. (OTCMKTS:NVLX) at any given time at its sole discretion without having to incur any monetary costs. The agreement will run for 36 months during which Nuvilex will have the right to sell Lincoln Park capital fund shares worth $25 million of its common stock. Nuvilex will thus control the amountandtiming of any future investment.

The future could be brighter for Nuvilex Inc. (OTCMKTS:NVLX) thus the move by Lincoln Park capital fund to invest such an amount of money. LPC is not new to such investments as it has seen its investments in an earlier partnership with Elite Pharmaceutical in 2013 surge by as high as 500%. LPC currently estimates it will be able to recoup its investments as soon as Nuvilex enters into late phase clinical trials.

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