Nile Therapeutics prices underwritten public offering of common stock

Apr 23 2010

Nile Therapeutics, Inc. (Nasdaq: NLTX), a company focused on the development of novel therapeutics for heart failure patients, announced the pricing of its previously announced underwritten public offering of 6,500,000 units of its securities at a public offering price of $0.70 per unit. Each unit consists of one share of Nile common stock and 0.30 warrants to purchase common stock. Each warrant has a term of five years and represents the right to purchase one share of common stock at an exercise price of $0.94 per share. No fractional warrants will be issued. The units will immediately separate and the common stock and warrants will be issued separately. The warrants have been approved for trading on the Nasdaq Capital Market under the symbol "NLTXW" and are expected to begin trading on or promptly following April 22, 2010. The offering is expected to close on or about April 27, 2010, subject to customary closing conditions.

Maxim Group LLC is acting as the sole book-running manager for this offering, with Ladenburg Thalmann & Co. Ltd. as co-manager. Nile has granted the underwriters an option for a period of 45 days to purchase up to an additional 975,000 units to cover over-allotments, if any.

The net proceeds from the sale of the units, after deducting underwriting discounts and commissions and other estimated offering expenses, are expected to be approximately $4.0 million. The Company plans to use the net proceeds from this offering to fund the previously announced expansion of its ongoing Phase II clinical trial of CD-NP in acute heart failure patients, and for general corporate purposes and working capital.

The offering described above is being made pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission on March 12, 2010. A preliminary prospectus supplement relating to the offering was filed with the SEC on April 12, 2010, and is available on the SEC's website at http://www.sec.gov. A final prospectus supplement relating to the offering will also be filed with the SEC.

SOURCE Nile Therapeutics, Inc.