UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q
                                                                     
            /X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996


                          Commission File Number 0-9314


                          ACCESS PHARMACEUTICALS, INC.
               (Exact name of registrant as specified in its charter)


       Delaware                                             83-0221517       
- ------------------------                           --------------------------
(State of Incorporation)                           (I.R.S. Employer I.D. No.)

               2600 Stemmons Frwy, Suite 176, Dallas, TX  75207                
              --------------------------------------------------
                   (Address of principal executive offices)

Telephone Number   (214) 905-5100

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports) and (2) has been subject to such
filing requirement for the past 90 days.

                        Yes    X               No       
                            ------                ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

Common stock outstanding as 
of   November 12, 1996                     31,391,324 shares, $0.04 par value  
     -----------------                     ----------

                          Total No. of Pages   12   












                    PART I -- FINANCIAL INFORMATION


ITEM 1    FINANCIAL STATEMENTS

The response to this Item is submitted as a separate section of this report.

ITEM 2    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

In connection with the merger of Access Pharmaceuticals, Inc., a Texas 
corporation ("API") with and into Chemex Pharmaceuticals, Inc. ("Chemex")
on January 25, 1996, the name of Chemex was changed to Access Pharmaceuticals,
Inc. ("Access" or the "Company").

Subsequent to the merger of API into Access (the "Merger"), the Company has 
been managed by the former management of API and the focus of the Company has 
changed to the development of enhanced parenteral therapeutic and diagnostic 
imaging agents through the utilization of its patented and proprietary 
endothelial binding technology which selectively targets sites of disease.  The
Company has a broad platform technology for enhancing the site targeting of 
intravenous therapeutic drugs, MRI contrast agents and radiopharmaceutical
diagnostic and therapeutic agents.  The Access technology is based on natural
carbohydrate carriers.

The technology development of the Company is currently focused on increasing 
the therapeutic benefit of oncology agents and improving the efficiency of 
oncology diagnosis by selectively targeting sites of disease and accelerating 
drug clearance.

The Company has developed four possible product candidates, two of which are 
anticipated to be ready to be advanced into human testing in the next nine to 
twelve months.  These product candidates are new formulations of existing 
compounds which increase therapeutic efficacy and reduce toxicity, designed to
address the clinical shortfalls of currently available treatments.

As a result of the Merger and immediately after the Merger, the former API 
stockholders owned approximately 60% of the issued and outstanding shares of 
the Company.  Generally accepted accounting principles require that a company 
whose stockholders retain the controlling interest in a combined business be 
treated as the acquiror for accounting purposes.  As a consequence, the Merger
has been accounted for as a "reverse acquisition" for financial reporting 
purposes and API has been deemed to have acquired an approximate 60% interest 
in Chemex.  Despite the financial reporting requirement to account for the 
acquisition as a "reverse acquisition," Chemex (now called Access) remains 
the continuing legal entity and registrant for Securities and Exchange 
Commission reporting purposes.

The unaudited balance sheets, statements of operations and statements of cash 
flows have been prepared using "purchase" accounting for the Merger, with API
as the acquirer.  The values used in the preparation of the financial 
statements were determined based on negotiations between Chemex and API and 
comparable values for companies at API's stage of development.  As a result,
common stock and paid in capital of API was recorded at a $10.0 million 
valuation.  The excess purchase price over the fair value of Chemex's assets 
was written off in the first quarter of 1996.  The accompanying balance sheet 
at December 31, 1995 and the related statements of operations and cash flows 
for the nine months ended September 30, 1995 are the statements of
API.  

                                     2

RECENT DEVELOPMENTS

On April 26, 1996, Access executed a letter of intent to acquire Tacora Corp., 
a privately-held pharmaceutical company based in Seattle.  The transaction is 
currently scheduled to close in the fourth quarter of 1996. Under the terms of
the letter of intent, the purchase price is contingent upon the achievement of
certain milestones.  Stock up to a maximum value of $14,000,000 could be 
payable to Tacora's shareholders over a 30 month period on an escalating 
value over the milestone period.  The consummation of the transaction is 
subject to customary conditions to closing including completion of due 
diligence, negotiation of definitive documents and approval of the 
stockholders of Tacora Corp.

                      Liquidity and Capital Resources

Working capital as of September 30, 1996 was $4,920,000, an increase of 
$5,435,000 as compared to the working capital as of December 31, 1995 of 
$(515,000).  The increase in working capital was principally due to $6 
million in proceeds from the private placement of 8.57 million shares of 
common stock in March 1996 and the addition of $1.69 million in working 
capital of Chemex resulting from the Merger between Chemex and API, offset 
by payments for 1996 operating expenses, $89,000 for 1996 capital lease 
payments and $480,000 for payment to a consultant as a result of the completion
of the private placement.  The net cash infusion from the private placement 
will be used to continue the development of the Access technology.  The
shares issued in the private placement have been registered for resale by 
the holders.

Management believes its working capital will cover planned operations through
December 1997.

Currently, royalty revenues are not expected during the remainder of 1996.  
Research and development expenditures to advance products into human testing 
will remain high for several years and there can be no assurance that the 
Company will be successful in attaining a partner or future equity financing 
to complete the testing of its products.

                           Third Quarter 1996
                               Compared to
                           Third Quarter 1995

The Company had no revenue in the third quarter 1996 as compared to $45,000 
in 1995.  Third quarter 1995 revenues were comprised of sponsored research 
and development revenues from an agreement that was terminated in June 1995.

Total research spending for the third quarter of 1996 was $430,000 as compared
to $106,000 for the same period in 1995, an increase of $324,000.  The 
increase in expenses was the result of the increase in staffing for projects
in 1996.  Research spending will increase in future quarters as the Company 
has hired additional scientific management and staff and is accelerating 
activities to develop the Company's product candidates. 

Total general and administrative expenses were $454,000 for the third 
quarter of 1996, an increase of $359,000 as compared to the same period in 
1995.  The increase in spending was due primarily to the following: 
increased professional expenses due to the Merger, Private Placement offering 
and public company reporting and compliance requirements- $108,000; salaries 
of recently hired employees- $122,000; patent expenses- $51,000; travel and 
entertainment expenses- $30,000; general business consulting fees and 
expenses- $21,000; director fees and director and officer insurance- 
$14,000;  and other miscellaneous increases- $13,000.

Accordingly, total expenses were $930,000, with interest income of $58,000 
resulting in a loss for the quarter of $872,000, or $.03 per share.

                                    3

                  Nine Months ended September 30, 1996
                              Compared to
                  Nine Months ended September 30, 1995

Net revenues for the nine months ended September 30, 1996 were $165,000 as 
compared to $575,000 in the same period in 1995, representing a decrease of 
$410,000.  1996 revenues related entirely to an option agreement for rights to
certain of the Company's technology that terminated in April 1996.  1995 
revenues were entirely comprised of sponsored research and development 
revenues from an agreement that was terminated in June 1995.

Research spending for the nine months ended September 30, 1996 was $887,000 
as compared to $547,000 for the same period in 1995, an increase of $340,000.  
Research spending will increase in future quarters as the Company has hired 
additional scientific management and staff and is accelerating activities to 
develop the Company's product  candidates.

General and administrative expenses were $1,145,000 for the nine months ended 
September 30, 1996, an increase of $785,000 as compared to the same period in
1995.  The increase was due to the following: increased professional expenses 
due to the Merger, Private Placement offering and public company reporting
and compliance requirements- $300,000; salaries of newly hired employees- 
$159,000; director fees and director and officer insurance- $86,000; 
patent expenses- $78,000; travel and entertainment expenses- $62,000; 
general business consulting fees and expenses- $56,000;  and other 
miscellaneous increases- $44,000.

Excess purchase price over the fair value of Chemex's assets of $8,314,000 
was recorded in the first quarter due to the merger of API and Chemex.

Accordingly, total expenses were $10,491,000, including $8,314,000 of excess 
purchase price written off in the first quarter, which resulted in a loss for
the nine months ended September 30, 1996 of $10,188,000, or $.35 per share.

Certain statements in this Form 10-Q including Management's Discussion and 
Analysis of Financial Condition and Results of Operations, are forward-
looking statements that involve risks and uncertainties.  In addition to
the risks and uncertainties set forth in this Form 10-Q, other factors could
cause actual results to differ materially, including but not limited to the 
Company's research and development focus, uncertainties associated with 
research and development activities, future capital requirements and dependence
on others, and other risks detailed in the Company's reports filed under 
the Securities Exchange Act, including but not limited to the Company's 
Annual Report on Form 10-K for the year ended December 31, 1995.

                      PART II -- OTHER INFORMATION

ITEM 1    LEGAL PROCEEDINGS
          None


ITEM 2    CHANGES IN SECURITIES
          None


ITEM 3    DEFAULTS UPON SENIOR SECURITIES
          None

                                   4

ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 
          None

ITEM 5    OTHER INFORMATION

          On April 26, 1996, Access executed a letter of intent to acquire 
          Tacora Corp., a privately-held pharmaceutical company based in 
          Seattle.  The transaction is currently scheduled to close in the
          fourth quarter of 1996. Under the terms of the letter of intent, the 
          purchase price is contingent upon the achievement of certain 
          milestones.  Stock up to a maximum value of $14,000,000 could be 
          payable to Tacora's shareholders over a 30 month period on an 
          escalating value over the milestone period.  The consummation of 
          the transaction is subject to customary conditions to closing 
          including completion of due diligence, negotiation of definitive 
          documents and approval of the stockholders of Tacora Corp.
                 

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K                                  

          Exhibits:  10.19  Lease Agreement with Pollock Realty Corporation 
                            dated July 25, 1996.

          Reports on Form 8-K: None

                                   5

                              SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this Report to be signed on its behalf by the 
undersigned, thereunto duly authorized.



                                               ACCESS PHARMACEUTICALS, INC.



Date:    November 14, 1996         By:    /s/ Kerry P. Gray       
                                          -----------------------------
                                          Kerry P. Gray       
                                          President and Chief Executive Officer
                                          (Principal Executive Officer)

Date:    November 14, 1996         By:    /s/ Stephen B. Thompson          
                                          -----------------------------
                                          Stephen B. Thompson
                                          Chief Financial Officer
                                          (Principal Financial and 
                                          Accounting Officer)







                                    6

                       ACCESS PHARMACEUTICALS, INC.
                       a development stage company

                             Balance Sheets
                                                                      


Assets                                   September 30, 1996  December 31, 1995 
- ------                                   ------------------  -----------------
                                                        

Current Assets
   Cash and cash equivalents                $  5,160,000         $     30,000
   Accounts receivable                                 -                3,000
   Prepaid expenses and other current assets     124,000                4,000
                                            -------------        -------------
      Total current assets                     5,284,000               37,000
                                            -------------        -------------
Property and Equipment, at cost                  572,000              558,000
   Less accumulated depreciation                (281,000)            (173,000)
                                            -------------        -------------
                                                 291,000              385,000
                                            -------------        -------------
Other Assets                                       8,000                2,000 
                                            -------------        -------------
   Total Assets                             $  5,583,000         $    424,000
                                            =============        =============


Liabilities and Stockholders' Equity (Deficit)

Current Liabilities
   Accounts payable and accrued expenses    $    210,000         $    169,000
   Unearned revenue                                    -              150,000
   Note payable due to Chemex                
      Pharmaceuticals, Inc.                            -              100,000
   Current portion of obligations under    
      capital leases                             154,000              133,000
                                            -------------        -------------
      Total current liabilities                  364,000              552,000
                                            -------------        -------------
Obligations under capital leases,
   net of current portion                        119,000              220,000
Note payable                                     110,000                    -
                                            -------------        -------------
Total Liabilities                                593,000              772,000
                                            -------------        -------------
Stockholders' Equity (Deficit)               
    Preferred stock, at September 30, 1996 
      $.01 par value, authorized 10,000,000 
      shares, none issued or outstanding;
      at December 31, 1995, $.10 par value, 
      authorized 1,000,000 shares, none 
      issued or outstanding                            -                    -
    Common stock, at September 30, 1996 
      $.04 par value, authorized 60,000,000 
      shares, issued and outstanding
      31,391,324 shares; at December 31, 
      1995 $.01 par value, authorized 
      10,000,000 shares, issued and 
      outstanding 3,639,928 shares             1,256,000               36,000
   Additional paid-in capital                 17,766,000            3,460,000
   Deficit accumulated during the 
      development stage                      (14,032,000)          (3,844,000)
                                            -------------        -------------
      Total Stockholders' Equity (Deficit)     4,990,000             (348,000)
                                            -------------        -------------
Total Liabilities and Stockholder's 
   Equity (Deficit)                         $  5,583,000         $    424,000
                                            =============        =============

- ---------------------------------------------
See accompanying notes to financial statements and Management's Discussion and 
Analysis of Financial Conditions and Results of Operations.     

                                   7

                      ACCESS PHARMACEUTICALS, INC.
                      a development stage company

                        Statements of Operations



                                                                  
                                 Three Months ended       Nine Months ended    
                                    September 30            September 30,       February 24, 1988
                                ----------------------   ----------------------    (inception)
                                   1996        1995         1996        1995      Sept 30, 1996
                                ----------  ----------   ----------  ----------   -------------
                                                                  
Revenues
Research and development        $        -  $   45,000   $        -  $  575,000   $ 2,711,000
Option income                            -           -      165,000           -     2,037,000
                                ----------  ----------   ----------  ----------   -----------
Total Revenues                           -      45,000      165,000     575,000     4,748,000
                                ----------  ----------   ----------  ----------   -----------

Expenses
Research and development           430,000     106,000      887,000     547,000     5,413,000
General and administrative         454,000      95,000    1,145,000     360,000     4,532,000
Interest                            10,000      13,000       37,000      49,000       113,000
Depreciation and amortization       36,000      31,000      108,000      93,000       879,000
Write off of excess purchase price       -           -    8,314,000           -     8,314,000
                                ----------  ----------   ----------  ----------   -----------
Total Expenses                     930,000     245,000   10,491,000   1,049,000    19,251,000
                                ----------  ----------   ----------  ----------   -----------
Loss from operations              (930,000)   (200,000) (10,326,000)   (474,000)  (14,503,000)
                                ----------  ----------   ----------  ----------   -----------
Other Income
Interest and miscellaneous income   58,000           -      138,000       4,000       597,000
                                ----------  ----------   ----------  ----------   -----------
Loss before income taxes          (872,000)   (200,000) (10,188,000)   (470,000)  (13,906,000)

Provision for income taxes               -           -            -           -       127,000
                                ----------  ----------   ----------  ----------   -----------
Net after income taxes          $ (872,000)  $(200,000)$(10,188,000) $ (470,000) $(14,033,000)
                                ==========  ==========  ===========  ==========   ===========

Loss per common share               $(0.03)     $(0.07)      $(0.35)     $(0.16)
                                ==========  ==========   ==========  ==========

Average number of common and equiivalent
   common shares outstanding    31,386,405   2,925,983   29,326,544   2,925,983
                                ==========  ==========   ==========  ==========

- ----------------------------------------------
See accompanying notes to financial statements and Management's Discussion and 
Analysis of Financial Conditions and Results of Operations

                                   8


                       ACCESS PHARMACEUTICALS, INC.
                      a development stage company

                       Statements of Cash Flows



             
                             Nine Months ended September 30,  February 24, 1988
                             ------------------------------    (inception) to
                                  1996             1995         Sept 30, 1996
                              ------------     ------------    ---------------
                                                      
Cash Flows form Operating Activities
Net loss                      $(10,188,000)    $   (470,000)    $(14,033,000)
Adjustments to reconcile 
net loss to cash used in 
operating activities:
  Write off of excess 
    purchase price               8,314,000                -        8,314,000
  Depreciation and amortization    108,000           93,000          879,000
  Change in assets and liabilities:
    Accounts receivable              3,000         (138,000)               - 
    Prepaid expenses and other 
      current assets              (126,000)          20,000         (131,000)
    Accounts payable and accrued
      expenses                      41,000           39,000          163,000
    Unearned revenue              (150,000)        (180,000)               -
                                ----------        ---------        ---------
Net Cash Used in 
  Operating Activities          (1,998,000)        (636,000)      (4,808,000)
                               -----------        ---------        ---------

Cash Flows From Investing Activities
  Capitalized expenditures         (14,000)               -       (1,124,000)
                               -----------        ---------        ---------
Net Cash Used in 
  Investing Activities             (14,000)               -       (1,124,000)
                               -----------        ---------        ---------

Cash Flows From Financing Activities
  Payments on obligations 
    under capital leases           (89,000)         (67,000)        (238,000)
  Proceeds from notes payable      119,000                -          722,000
  Proceeds from Merger with 
    Chemex Pharmaceuticals       1,587,000                -        1,587,000
  Proceeds from stock issuances,
    net                          5,525,000          170,000        9,021,000 
                                ----------        ---------        ---------
Net Cash Provided By (Used in) 
  Financing Activities           7,142,000          103,000       11,092,000
                                ----------        ---------       ----------
Net Increase (Decrease) in Cash 
  and Cash Equivalents           5,130,000         (533,000)       5,160,000
Cash and Cash Equivalents at 
  Beginning of Year                 30,000          533,000                -
                                ----------        ---------       ----------
Cash and Cash Equivalents at 
  End of Period                 $5,160,000        $       -       $5,160,000
                                ==========        =========       ==========

Supplemental disclosure of 
  non cash transactions:
    eliminations of note payable 
    to Chemex Pharmaceutical 
    due to Merger               $  100,000


- ----------------------------------------------                          
See accompanying notes to financial statements and Managements Discussion and 
Analysis of Financial Conditions and Results

                                   9

                       ACCESS PHARMACEUTICALS, INC.
                        a development stage company
                       Notes to Financial Statements
             Nine Months Ended September 30, 1996 and 1995

(1)    Interim Financial Statements

       The balance sheet as of September 30, 1996 and the statements of 
       operations and cash flows for the nine months ended September 30, 1996 
       and 1995 were prepared by management without audit. In the opinion of 
       management, all adjustments, including only normal recurring adjustments
       necessary for the fair presentation of the financial position, results 
       of operations, and changes in financial position for such periods, have
       been made, except for the merger accounting discussed below.

       Certain information and footnote disclosures normally included in 
       financial statements prepared in accordance with generally accepted 
       accounting principles have been condensed or omitted.  It is suggested 
       that these financial statements be read in conjunction with the 
       financial statements and notes thereto included in the Company's 
       Annual Report on Form 10-K for the year ended December 31, 1995.  The 
       results of operations for the period ended June 30, 1996 are not
       necessarily indicative of the operating results which may be expected 
       for a full year.  The balance sheet as of December 31, 1995 contains 
       financial information taken from the audited financial statements of 
       Access Pharmaceuticals, Inc., a Texas corporation, ("API") as of that 
       date.

       API merged with and into Chemex Pharmaceuticals, Inc. ("Chemex") on 
       January 25, 1996. Under the terms of the agreement, API was merged into
       Chemex with Chemex as the surviving legal entity.  The name of Chemex 
       was changed to Access Pharmaceuticals, Inc. ("Access" or the "Company").
       The Company acquired all of the outstanding shares of API in exchange 
       for 13,919,979 shares of its registered common stock.   

       The Company is engaged in research and development activities with a 
       broad platform technology for enhancing the site targeting of 
       intravenous therapeutic drugs, MRI contrast agents and 
       radiopharmaceutical diagnostic and therapeutic agents.  The Access 
       technology is based on natural carbohydrate carriers.

       As a result of the merger and immediately after the merger, the former 
       API stockholders owned approximately 60% of the issued and outstanding 
       shares of the Company.  Generally accepted accounting principles 
       require that a company whose stockholders retain the controlling 
       interest in a combined business be treated as the acquiror for 
       accounting purposes.  As a consequence, the merger was accounted for as
       a "reverse acquisition" for financial reporting purposes and API has
       been deemed to have acquired an approximate 60% interest in Chemex.  
       Despite the financial reporting requirement to account for the 
       acquisition as a "reverse acquisition," Chemex remains the continuing 
       legal entity and registrant for Securities and Exchange Commission 
       reporting purposes.  However, the name of Chemex was changed to 
       Access Pharmaceuticals, Inc. ("Access" or the "Company").  

       Certain numbers have been reclassified to conform with the current 
       presentation.
                                             
                                   10

                      ACCESS PHARMACEUTICALS, INC.
                      a development stage company
                     Notes to Financial Statements
               Nine Months Ended September 30, 1996 and 1995

       The unaudited financial statements at September 30, 1996 have been 
       prepared using "purchase" accounting for the merger with API as the 
       acquirer.  The values used in the preparation of the financial 
       statements were determined based on negotiations between Chemex and 
       API and comparable values for companies at API's stage of development.
       As a result, common stock and paid in capital of API was recorded at 
       a $10.0 million valuation.  The excess purchase price over the fair 
       value of Chemex's assets of $8,314,000 was written off in the first 
       quarter of 1996.  The balance sheet at December 31, 1995 and the 
       related statements of operations and cash flows for the nine months 
       ended September 30, 1995 are the statements of API.  

       Proforma condensed results of operations "as if" the acquisition had 
       been made on January 1, 1996 and 1995, respectively, are as follows:

                                         Nine months ended September 30  
                                         ------------------------------
                                              1996          1995
                                           ----------   ----------
          Revenues                           $303,000   $3,464,000
          Expenses                          2,135,000    3,071,000
                                           ----------   ----------
          Net income (loss)                (1,832,000)     393,000
                                           ==========   ==========
          Net income (loss) per share          $(0.06)       $0.02
                                           ==========   ==========

(2)    In March 1996 the Company concluded a $6 million Private Placement of 
       8.57 million shares of common stock.  The cash infusion will be used to 
       continue the advancement of the Access technology which focuses on 
       increasing the therapeutic benefit and improving the efficacy of
       oncology therapeutics and diagnostic agents by selectively targeting 
       sites of disease and accelerating drug clearance.

(3)    SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and 
       for Long-Lived Assets to be Disposed Of," effective for fiscal years 
       beginning after December 15, 1995, requires that long-lived assets and
       certain identifiable intangibles to be held and used by an entity be 
       reviewed for impairment whenever events or changes in circumstances 
       indicate that the carrying amount may not be recoverable.  In addition, 
       this statement requires that long-lived assets and certain 
       identifiable intangibles to be disposed of be reported at the lower of 
       carrying amount or fair value less cost to sell.  The Company adopted 
       this statement January 1, 1996, and the adoption of SFAS No. 121 did 
       not have material impact on the financial statements of the Company.

                                   11

                      ACCESS PHARMACEUTICALS, INC.
                      a development stage company
                      Notes to Financial Statements
              Nine Months Ended September 30, 1996 and 1995

(4)    SFAS No. 123, "Accounting for Stock Based Compensation", effective for 
       fiscal years beginning after December 15, 1995 established financial, 
       accounting and reporting standards for stock-based employee 
       compensation plans.  These plans include all arrangements by which 
       employees receive shares of stock or other equity investments of the 
       employer or the employer incurs liabilities to employees in amounts 
       based on the price of the employer's stock.  This statement also applies
       to transactions in which an entity issues its equity instruments to 
       acquire goods or services from non-employees.  The Company has elected 
       to continue to account for employee stock compensation plans under 
       APB 25 but will disclose the required pro forma effect on net income 
       and earnings per share in the Company's year ending December 31, 1996 
       financial statements.


(5)    On April 26, 1996, Access executed a letter of intent to acquire Tacora
       Corp., a privately-held pharmaceutical company based in Seattle.  The 
       transaction is currently scheduled to close in the fourth quarter of 
       1996. Under the terms of the letter of intent, the purchase price is 
       contingent upon the achievement of certain milestones.  Stock valued 
       at up to a maximum of $14,000,000 could be payable to Tacora's 
       shareholders over a 30 month period on an escalating value over the
       milestone period.  The consummation of the transaction is subject to 
       customary conditions to closing including completion of due diligence, 
       negotiation of definitive documents and approval of the stockholders 
       of Tacora Corp.

                                  12