Biosante Pharma (AMEX:BPA)
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BioSante Pharmaceuticals, Inc. (Amex: BPA) today announced that it has
entered into definitive agreements with institutional and other
accredited investors with respect to the private placement of 2,754,999
million shares of its common stock at a purchase price of $6.00 per
share, for expected gross proceeds of approximately $16.5 million,
before payment of placement agent commissions and offering expenses.
Investors also will receive warrants to purchase 688,750 shares of
common stock at an exercise price of $8.00 per share. Rodman & Renshaw,
LLC is serving as lead placement agent with Oppenheimer & Co. Inc.
serving as an additional placement agent for the transaction. The
transaction is expected to be completed upon approval of an additional
listing application by the American Stock Exchange.
"We are pleased with this private placement, and are gratified to
welcome new institutional investors to BioSante," said Stephen M. Simes,
BioSante's president and chief executive officer. “We
limited the private placement to the amount raised to minimize dilution
to our existing stockholders, while adding to our cash balance.”
The expected net proceeds of approximately $15.6 million will be used to
continue and expand BioSante’s previously
announced Phase III clinical program of LibiGel®
for treatment of female sexual dysfunction (FSD). The first of two Phase
III safety and efficacy studies was initiated in December 2006. Based on
its current cash balance and commitments, BioSante believes that with
the net proceeds from this private placement, it should be able to
maintain its current planned development activities and the
corresponding level of expenditures through the end of 2008, although no
assurance can be given that it will not need additional cash prior to
such time.
The securities offered in this placement have not been registered under
the Securities Act of 1933, as amended, or state securities laws, and
cannot be offered or sold in the United States absent registration with
the Securities and Exchange Commission (SEC) or an applicable exemption
from the registration requirements. As part of the transaction, the
company has agreed to file a registration statement with the SEC
covering the resale of the shares of common stock to be issued in the
offering, including the shares of common stock issuable upon exercise of
the warrants. This news release is neither an offer to sell nor a
solicitation of an offer to buy any of the securities discussed herein
and is being issued under Rule 135c of the Securities Act of 1933.
About BioSante Pharmaceuticals, Inc.
BioSante is developing a pipeline of hormone therapy products to treat
both men and women. These hormone therapy products are gel formulations
for transdermal administration that deliver bio-identical estradiol and
testosterone. BioSante's lead products include Elestrin™
(estradiol gel), developed through U.S. Food and Drug Administration
(FDA) approval by BioSante, indicated for the treatment of
moderate-to-severe vasomotor symptoms associated with menopause, and
LibiGel® (transdermal
testosterone gel) in Phase III development for the treatment of female
sexual dysfunction (FSD). The current market in the U.S. for estrogen
and testosterone products is approximately $2.5 billion. The company
also is developing its calcium phosphate nanotechnology (CaP) for novel
vaccines, including hepatitis B, avian flu and biodefense vaccines for
toxins such as anthrax, as well as a system for delivering drugs via
alternative routes of administration. Additional information is
available online at: www.biosantepharma.com.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The
statements regarding BioSante contained in this news release that
are not historical in nature, particularly those that utilize
terminology such as “may,”
“will,” “should,”
“likely,” “expects,”
“anticipates,” “estimates,”
“believes,” “plans,”
“hopes,” or
comparable terminology, are forward-looking statements. Forward-looking
statements are based on current expectations and assumptions, and entail
various risks and uncertainties that could cause actual results to
differ materially from those expressed in such forward-looking
statements. Important factors known to BioSante that cause actual
results to differ materially from those expressed in such
forward-looking statements are the difficulty of developing
pharmaceutical products, the success of clinical testing, obtaining
regulatory and other approvals and achieving market acceptance, and
other factors identified and discussed from time to time in BioSante's
filings with the Securities and Exchange Commission, including those
factors discussed in BioSante's most recent Forms 10-K and 10-Q, which
discussion also is incorporated herein by reference. All
forward-looking statements speak only as of the date of this news
release. BioSante undertakes no obligation to update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.