Poniard Pharmaceuticals may sell up to $60 million of its registered common stock to finance its picoplatin clinical development and commercialization programs

www.poniard.comAug 20 2009

Poniard Pharmaceuticals, Inc. (Nasdaq: PARD), a biopharmaceutical company focused on oncology, today announced that it has secured a committed equity financing facility under which it may sell up to $60 million of its registered common stock to Azimuth Opportunity Ltd. over an 18 month period. Poniard is not obligated to utilize any of the $60 million facility and remains free to enter into and consummate other equity and debt financing transactions.

Poniard will determine, at its sole discretion, the timing, dollar amount and floor price per share for any draw under this facility, subject to certain conditions. When and if Poniard elects to use the facility, the number and price of shares sold in each draw will be determined by a contractual formula, whereby Poniard will issue shares to Azimuth at a pre-negotiated discount to the volume weighted average price of Poniard's common stock over a preceding period of trading days. Reedland Capital Partners, an Institutional Division of Financial West Group, will act as placement agent and receive a fee for its services at the time of any draw under the facility. Any shares sold under this facility will be sold pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on May 15, 2009.

Poniard intends to use the proceeds from any future sale of securities under the facility to advance its picoplatin clinical development and commercialization programs, pursue potential new product opportunities and for other general corporate purposes.

"This equity line provides us with an important addition to our financing options," said Greg Weaver, Poniard's senior vice president and chief financial officer. "The facility has a competitive cost of capital, no warrants and flexible structure and should further strengthen our position as we negotiate with potential global partners for our late-stage differentiated platinum-based chemotherapy agent, picoplatin."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.