BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) today announced the closing of the sale, directly to funds affiliated with two institutional investors, of an aggregate of approximately 10.4 million shares of BioSante’s common stock and warrants to purchase up to approximately 5.2 million shares of its common stock, resulting in gross cash proceeds to BioSante of $18 million.
The investors are Great Point Partners, LLC and Deerfield Management Company. BioSante received net proceeds of approximately $17.5 million after deducting placement agent fees and other estimated offering expenses. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, was sold for a purchase price of $1.73, which is equal to the closing price of BioSante’s common stock on the day before the securities purchase agreements were signed, as reported by the NASDAQ Stock Market.
“We are very pleased that Great Point and Deerfield, two large institutional investors, new to BioSante, made the decision to invest in BioSante”
The warrants to purchase additional shares will be exercisable at an exercise price of $2.08 per share beginning on September 9, 2010 and will expire on September 8, 2015.
Proceeds from the transaction will be used for general corporate purposes, including continuing funding of BioSante’s LibiGel Phase III clinical study program, as well as seeking opportunities for its GVAX cancer immunotherapies, 2A/Furin and other technologies.
"We are very pleased that Great Point and Deerfield, two large institutional investors, new to BioSante, made the decision to invest in 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 continues to be 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 believe that LibiGel has the potential to be the first product approved by the FDA for this common and unmet medical need.”
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc., (NASDAQ: RODM), acted as the exclusive placement agent for the transaction. JMP Securities acted as financial advisor.