Entelos Raises $1.5 m from Pfizer Share Purchase
FOSTER CITY, CA, October 31, 2007 – Entelos, Inc. (LSE: ENTL), a leading life sciences company using next-generation predictive technologies for drug discovery and development, is pleased to announce today that Pfizer Ireland Pharmaceuticals (formerly Pfizer Overseas Pharmaceuticals), a subsidiary of Pfizer Inc., (“Pfizer”) and one of the Company’s current shareholders, has entered into an agreement to subscribe for 2,516,299 Entelos common shares at 29.1 pence per share.
Pfizer Ireland Pharmaceuticals has agreed to invest $1.5 million in cash to acquire 2,516,299 new Entelos shares representing 3.3% of the enlarged share capital of Entelos. The subscription price of 29.1 pence per share is calculated from the average closing price of the 10 trading days prior to and including 25 October 2007, and represents a premium of approximately 23% to the closing share price of 22.5 pence on 30 October 2007, the last practicable date prior to this announcement. Following the subscription, Pfizer Ireland Pharmaceuticals will hold a total of 5,214,334 Entelos shares representing 6.9% of the enlarged share capital of Entelos.
The funds raised in this subscription will be used as additional working capital as the Company pursues its growth strategy of building and acquiring complementary predictive technologies to generate revenue from services and technology licensing.
All of the shares to be issued will be subject to an orderly marketing agreement which provides that, subject to certain limited exemptions, the new shares may not be disposed of within 12 months following the closing date of the subscription, which is expected to be 31 October 2007, other than through Evolution Securities Limited, the Company’s broker and nominated advisor, so as to ensure an orderly market for the issued share capital of the Company. An application will be made for the new Entelos shares to be admitted to trading on AIM and admission is expected to become effective on 9 November 2007.
James Karis, President and CEO of Entelos stated: “We are pleased that Pfizer has agreed to increase its holding in the Company. We plan to utilise the proceeds of this investment to facilitate the Company’s growth strategy.”
For further information please contact:
Alan Blazei, CFO
Jill Fujisaki, VP, Investor Relations
Tel: +1 650 572 5400
Tim Worlledge, Director
Tel +44 (0) 20 7071 4300
Bobbie Hilliam, Associate Director
Tel +44 (0) 20 7466 5000
Notes for Editors
Entelos, Inc. (www.entelos.com) is a US-based life sciences company applying next-generation predictive technologies to revolutionize the way medicines are discovered, developed, and utilized. The Company leverages its proprietary in silico disease models, “virtual patients”, and toxicology reference systems to develop safer and more effective drugs and support pharmaceutical R&D and commercialization. In addition to internal drug programs in rheumatoid arthritis and women's health, Entelos provides customized technology and research services to global pharmaceutical and health-care companies in cardiovascular diseases, asthma, obesity, diabetes, hematopoeisis (anemia), cholesterol metabolism, and skin sensitization. The company is also developing a model in oncology and is collaborating with the FDA to build a model of drug-induced liver toxicity. Entelos also offers cost-effective drug development capabilities through its strategic alliance with India-based Jubilant Biosys.
Posted: October 2007