Amarin Announces Completion of Equity Financing
June 04 2007 - 7:01AM
PR Newswire (US)
Directors and Officers Participate to Maintain Shareholding at 28%
LONDON, June 4 /PRNewswire-FirstCall/ -- Amarin Corporation plc
(NASDAQ: AMRN) today announced that it has completed a registered
direct offering with the sale of ordinary shares and warrants,
resulting in gross proceeds of $3.7 million. An affiliate of a
former shareholder, Southridge Capital Management, Inc., invested
$3 million. Certain directors and officers of Amarin invested the
remaining $0.7 million. The 6.16 million ordinary shares sold were
priced 'at market', being Amarin's closing price on the Nasdaq
Capital Market on Thursday, May 31, of $0.60 per share. The
investors also received warrants to purchase 0.62 million shares at
an exercise price of $0.72 per share. The number of ordinary shares
issued represents approximately 5% of Amarin's fully diluted shares
outstanding as of June 4, 2007. In addition, Amarin and Southridge
entered into an equity line of credit agreement that provides
Amarin with the option to draw down up to $15.0 million of
additional equity funding by Southridge at any time over a three
year period, solely at Amarin's discretion. If Amarin elects to
make a draw under the agreement, the shares to be issued will be
priced at a 4% discount to the average closing bid price of
Amarin's ADSs during the pricing period at the time of the draw.
Amarin also remains free to pursue other financing activities
during the three year term. In connection with the agreement,
Amarin has paid to Southridge a one-time fee of $300,000 through
the issuance of an additional 499,168 ordinary shares. Mr. Rick
Stewart, Chief Executive Officer of Amarin, commented, "We are
delighted with Southridge's support and with the continuing strong
support of our directors, who continue to invest significantly in
Amarin. The completion of this funding enables us to pursue the
development of our four key programs, three of which could
potentially be in phase II trials next year, and provides us with
additional capital to expand our neuroscience pipeline and to
negotiate new drug development and licensing agreements from a
position of strength". Mr. Alan Cooke, President and Chief
Financial Officer of Amarin, commented, "We are delighted to have
completed this registered direct offering and equity line of credit
agreement on such competitive terms. It provides us with excellent
financial flexibility for the future in a manner that is aimed to
minimize dilution to shareholders. We are delighted to have
established this strategic financial relationship with Southridge."
Proseed Capital Holdings CVA advised Amarin on the registered
direct offering and on the negotiation of the equity line of credit
agreement. A registration statement relating to these securities
has been filed with and declared effective by the Securities and
Exchange Commission. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall
there be the sale of the securities in any state in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.
Application will also be made to list the ordinary shares on the
AIM and IEX, respectively. About Amarin Amarin is committed to
improving the lives of patients suffering from diseases of the
central nervous system. Our goal is to be a leader in the research,
development and commercialization of novel drugs that address unmet
patient needs. Amarin's core development pipeline includes, in
addition to Miraxion for several therapeutic indications, four
other key development programs in Parkinson's disease, epilepsy
seizures, memory and cognition and our proprietary pre-clinical
combinatorial lipid program. Amarin has its primary stock market
listing in the U.S. on the Nasdaq Capital Market ("AMRN") and
secondary listings in the U.K. and Ireland on AIM ("AMRN") and IEX
("H2E"), respectively. For press releases and other corporate
information, visit the Amarin website at
http://www.amarincorp.com/. Information on our website does not
form part of this press release. Disclosure Notice: The information
contained in this document is as of June 4, 2007. Amarin assumes no
obligation to update any forward-looking statements contained in
this document as a result of new information or future events or
developments. This document contains forward-looking statements
about Amarin's financial condition, results of operations, business
prospects and products in research that involve substantial risks
and uncertainties. You can identify these statements by the fact
that they use words such as "will", "anticipate", "estimate",
"expect", "project", "forecast", "intend", "plan", "believe" and
other words and terms of similar meaning in connection with any
discussion of future operating or financial performance or events.
Among the factors that could cause actual results to differ
materially from those described or projected herein are the
following: the success of Amarin's research and development
activities; decisions by regulatory authorities regarding whether
and when to approve Amarin's drug applications, as well as their
decisions regarding labeling and other matters that could affect
the commercial potential of Amarin's products; the speed with which
regulatory authorizations, pricing approvals and product launches
may be achieved; the success with which developed products may be
commercialized; competitive developments affecting Amarin's
products under development; the effect of possible domestic and
foreign legislation or regulatory action affecting, among other
things, pharmaceutical pricing and reimbursement, including under
Medicaid and Medicare in the United States, and involuntary
approval of prescription medicines for over-the-counter use;
Amarin's ability to protect its patents and other intellectual
property; claims and concerns that may arise regarding the safety
or efficacy of Amarin's product candidates; governmental laws and
regulations affecting Amarin's operations, including those
affecting taxation; Amarin's ability to maintain sufficient cash
and other liquid resources to meet its operating requirements;
general changes in International and U.S. generally accepted
accounting principles; growth in costs and expenses; and the impact
of acquisitions, divestitures and other unusual items. A further
list and description of these risks, uncertainties and other
matters can be found in Amarin's Form 20-F for the fiscal year
ended December 31, 2006, filed with the SEC on March 5 2007,
Amarin's statutory annual report for the year ended 31 December,
2006 furnished on a Form 6-K to the SEC on May 9, 2007 and in its
Reports of Foreign Issuer on Form 6-K furnished to the SEC.
DATASOURCE: Amarin Corporation Plc CONTACT: Contacts: Amarin:
+44-(0)-207-907-2442, Rick Stewart, Chief Executive Officer,Alan
Cooke, President and Chief Financial Officer, ; Investors:
Lippert/Heilshorn & Associates, Inc. Anne Marie Fields,
+1-212-838-3777; Media: Powerscourt, +44-(0)-207-250-1446, Rory
Godson, Victoria Brough
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