Mar 4 2010
BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) today announced that it
has received commitments from two institutional investors to purchase
$18 million of securities in a registered direct offering. The investors
are Great Point Partners, LLC and Deerfield Management Company. BioSante
expects to receive net proceeds of approximately $17.5 million after
deducting placement agent fees and other offering expenses. BioSante has
entered into securities purchase agreements with these investors
pursuant to which BioSante has agreed to sell an aggregate of
approximately 10.4 million shares of its common stock and warrants to
purchase up to approximately 5.2 million additional shares of its common
stock. Each unit, consisting of one share of common stock and a warrant
to purchase 0.5 of a share of common stock, will be sold for a purchase
price of $1.73, which is equal to the closing price of BioSante’s stock
yesterday on the NASDAQ Stock Market.
“We are pleased to welcome Great Point and Deerfield, two new large
institutional investors, to BioSante”
"We are pleased to welcome Great Point and Deerfield, two new large
institutional investors, to BioSante," said Stephen M. Simes, BioSante's
president and chief executive officer. “This additional funding from
these two high quality institutional investors provides us with a strong
cash cushion ensuring our ongoing focus on our LibiGel® Phase
III clinical study program. Our objective is to submit a new drug
application (NDA) to the U.S. Food and Drug Administration (FDA) by
mid-2011. LibiGel remains the lead pharmaceutical product in the U.S. in
active development for the treatment of hypoactive sexual desire
disorder (HSDD) in menopausal women, and we continue to believe that
LibiGel has the potential to be the first product approved by the FDA
for this common and unmet medical need.”
The warrants to purchase additional shares will be exercisable at an
exercise price of $2.08 per share beginning six months and one day after
the date of issuance and will expire five years from the date that the
warrants first become exercisable. All of the securities were offered
pursuant to an effective shelf registration statement. Proceeds from the
transaction will be used for general corporate purposes, including
continuing to fund BioSante’s LibiGel Phase III clinical study program,
as well as to seek opportunities for its GVAX cancer immunotherapies,
2A/Furin and other technologies. The offering is expected to be
consummated by March 8, 2010, subject to customary closing conditions.
SOURCE BioSante Pharmaceuticals, Inc.