Tonix receives net proceeds of $2.0M in private placement offering

Mar 6 2012

Tonix Pharmaceuticals Holding Corp. (OTCBB:TNXP) ("TONIX" or the "Company"), a specialty pharmaceutical company developing therapies for challenging disorders of the central nervous system ("CNS"), including fibromyalgia syndrome ("FM") and post-traumatic stress disorder ("PTSD"), has received net proceeds of approximately $2.0 million in a private placement offering to institutional and accredited investors. This closing, together with the closing of a prior tranche of the private placement of $4.3 million in January 2012, constitutes the final closing of a $6.6 million private placement (the "Offering"). Total net proceeds were $5.9 million. Dawson James Securities acted as the Company's exclusive placement agent for the Offering.

In connection with the closing of this tranche, the Company issued approximately 93 units (the "Units"), each consisting of 25,000 shares of common stock, Class A warrants to purchase 25,000 shares of common stock, and Class B warrants to receive up to 25,000 shares of common stock. The Class A warrants have an exercise price of $1.25 per share of the common stock and will be exercisable for a period of five years from the date of issuance. The Class B warrants will be exercised automatically on their expiration date by cashless exercise, or expire without exercise. The maximum number of shares received related to the automatic exercise of the Class B warrants, if any, is one share per Class B warrant and will be determined by the stock price of the common stock prior to the termination date. The purchase price of each Unit was $25,000. Together with the prior closing of the Offering, the Company has issued 265 units.

TONIX intends to use the net proceeds from the Offering to fund the development of its FM, PTSD and other programs, and for general working capital.

Seth Lederman, M.D., Chairman and President of TONIX said, "We are pleased to have closed on this financing, which represents an important milestone for our company. These funds will enable us to further the development of our programs targeting fibromyalgia and other challenging disorders of the central nervous system."