MDRNA closes $1M bridge loan

Dec 24 2009

MDRNA, Inc. (NASDAQ: MRNA), a leading RNAi-based drug discovery and development company, today announced the closing of a bridge loan pursuant to a Note and Warrant Purchase Agreement. Under the terms of the loan, the Company sold promissory notes in the aggregate principal amount of $1.0 million and issued warrants to purchase an aggregate of approximately 1.1 million shares of the Company's common stock at $1.02 per share to certain accredited investors.

"This bridge loan provides us with the flexibility to pursue partnering and financing options into the beginning of next year," said J. Michael French, President & CEO of MDRNA. "As we continue to execute on our business strategy, this ensures that we have sufficient resources to achieve our near-term objectives."

The loan will become due and payable on February 1, 2010 with interest calculated at 12% per annum and payable on the due date. The loan is to be secured against the assets of MDRNA, Inc. and its subsidiaries. The warrants are being offered by the Company pursuant to an effective shelf registration statement on Form S-3 (No. 333-148771), which was declared effective by the Securities and Exchange Commission on February 4, 2008.