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 3,812,978 shares of its common stock at a
purchase price of $2.00 per share, for gross proceeds of $7,625,956,
before payment of placement agent commissions and offering expenses.
Investors also will receive warrants to purchase 1,334,542 shares of
common stock at an exercise price of $2.75 per share. Rodman &
Renshaw, LLC served as placement agent for the transaction. The
transaction is expected to be completed upon approval of an additional
listing application with 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. "In addition,
we are happy to welcome back previous investors in BioSante, as well
as additional investment by current BioSante stockholders. Among the
investors in this private placement are Perceptive Life Sciences,
Quogue Capital, Hunt BioVentures, L.P., Mallette Capital Management,
Inc. and Valesco Capital Management and entities affiliated with
Paramount BioCapital. We believe these strong investors will help
increase the company's visibility in the investment community."
The additional $7,244,658 in net proceeds will be used to progress
Bio-E-Gel(R) to approval of its New Drug Application for the treatment
of menopausal symptoms, which application is currently under review by
the U.S. Food and Drug Administration, and to initiate Phase III
clinical trials of LibiGel(R) in the treatment of female sexual
dysfunction, as well as for general corporate purposes. 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 at least the next twelve
months, 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 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 bioidentical
estradiol and testosterone. BioSante's lead products include
Bio-E-Gel(R) (transdermal estradiol gel) for the treatment of women
with menopausal symptoms, and LibiGel(R) (transdermal testosterone
gel) for the treatment of female sexual dysfunction (FSD). A Bio-E-Gel
new drug application (NDA) was submitted to the FDA in the first
quarter 2006. The current market in the U.S. for estrogen and
testosterone products is approximately $2.5 billion. The transdermal
gel formulations used in the women's gel products are licensed by
BioSante from Antares Pharma Inc. The company also is developing its
calcium phosphate nanotechnology (CaP) for novel vaccines, including
avian flu and biodefense vaccines for toxins such as anthrax and
ricin, and drug delivery systems. 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, 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 on pages 22 to 34 in BioSante's most recent Form
10-K, which discussion also is incorporated herein by reference.
Additional risk factors include the risk that the closing of the
private placement will not take place or that BioSante's product
development activities will be more expensive than contemplated and
that BioSante's cash balances will not be sufficient to continue its
current planned development activities for at least the next 12
months. 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.