BioSante Pharmaceuticals Announces $7.6 Million Private Placement of Common Stock
July 10 2006 - 7:00AM
Business Wire
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.
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