Alexza enters into agreement with institutional investors to raise $19.7 million

Alexza Pharmaceuticals, Inc.Oct 1 2009

Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) announced today that it has entered into a definitive agreement with various institutional investors to raise $19.7 million in a private placement of its common stock. Under the terms of the financing, Alexza is expected to sell approximately 8.1 million shares of common stock and warrants to purchase approximately 7.3 million shares of common stock at a total purchase price of $2.4325 per unit. On September 29, 2009, the closing price for the Company's common stock was $2.32 per share. The investors in this private placement will receive 7-year warrants, exercisable immediately, to purchase 0.9 shares of Alexza Common Stock for each share of common stock purchased. The warrant exercise price is $2.77 per share. Alexza expects to net approximately $19.1 million in the transaction, after deducting offering expenses. RBC Capital Markets acted as the sole placement agent for this offering.

The closing of the offering is subject to certain customary conditions and is expected to occur on or about October 5, 2009. Proceeds from the financing will be used primarily for working capital and general corporate purposes.

The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Alexza has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of Alexza Common Stock issued in this private placement and the shares of Alexza Common Stock issuable upon exercise of the warrants issued in this private placement.