Biosante Raises $16.9M By Selling Stock, Warrants
From Associated Press (December 28, 2010)
LINCOLNSHIRE, Ill. -- BioSante Pharmaceuticals Inc. expects to raise $16.9 million from institutional investors through a direct offering of stock and options, the company said.
After the markets closed Monday, BioSante said the investors agreed to buy securities consisting of 10.6 million shares, and warrants to buy another 5.3 million shares. The investors are buying the securities in units of one share and a warrant to buy one-half of one share. The units cost $1.70 each. The warrants can be exercised at any time in the next five years, and they value BioSante stock at $2 per share. The company said it raised $18 million from the offering before discounts and expenses are deducted.
BioSante said it will use the proceeds to fund a late-stage clinical trial of its sexual dysfunction treatment LibiGel, and to seek opportunities for its GVAX cancer therapies. LibiGel is a testosterone gel applied to the skin, and it is intended for women. The company said it plans to file for Food and Drug Administration approval of LibiGel by the end of 2011.
BioSante announced Thursday that it extended an equity financing agreement with Kingsbridge Capital Ltd. Shares of BioSante climbed 26.6 percent Monday, and in Tuesday afternoon trading, they fell 34 cents, or 17.1 percent, to $1.66.
Posted: December 2010