Biosante Pharma (AMEX:BPA)
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BioSante Pharmaceuticals, Inc. (AMEX: BPA) today announced that it has
completed its previously announced $18.3 million private placement of
shares of its common stock and warrants to institutional and other
accredited investors. A total of 3,054,999 shares of common stock were
sold at a purchase price of $6.00 per share. Investors also received
warrants to purchase 763,750 shares of common stock at an exercise price
of $8.00 per share. Rodman & Renshaw, LLC served as lead placement agent
with Oppenheimer & Co. Inc. serving as an additional placement agent for
the transaction. Approximately half of the shares were placed with
U.S.-based investors and half with Israel-based investors.
After deducting placement agent commissions and estimated closing
expenses, the company received net proceeds of approximately $17.3
million, which will be used to continue and expand BioSante’s
previously announced Phase III clinical program of LibiGel®
for treatment of female sexual dysfunction (FSD), as well as for general
corporate purposes. The first of two Phase III safety and efficacy
studies of LibiGel was initiated in December 2006.
"This private placement provides us with additional capital to continue
moving our hormone therapy programs forward," said Stephen M. Simes,
president and chief executive officer of BioSante. "We are pleased that
we had an opportunity to add a significant amount of cash to our balance
sheet, while still limiting dilution to our stockholders."
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 eighteen
months, although no assurance can be given that it will not need or
raise additional financing prior to such time.
The securities sold 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, BioSante 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.
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 FDA approval by BioSante indicated for
the treatment of moderate-to-severe vasomotor symptoms associated with
menopause, marketed in the U.S. by Bradley Pharmaceuticals, Inc.,
BioSante's licensee, and LibiGel®
(transdermal testosterone gel) in Phase III development by BioSante for
the treatment of female sexual dysfunction (FSD). The gel formulations
used in Elestrin and LibiGel are licensed from Antares Pharma, Inc. Also
in development is Bio-T-Gel™, a testosterone
gel for male hypogonadism, and an oral contraceptive using BioSante
patented technology. The current market in the U.S. for estrogen and
testosterone products is approximately $2.5 billion and for oral
contraceptives approximately $3.0 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
could 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, the success of clinical testing, 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 annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q, which discussions also are
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.