ROCKVILLE, Md., Oct. 10, 2014 /PRNewswire/ -- Synthetic
Biologics, Inc. (NYSE MKT: SYN), a biotechnology company developing
novel biologics and drugs targeting specific pathogens that cause
serious infections and diseases, announced today that
it has executed definitive purchase agreements with select
institutional investors for gross proceeds of approximately
$20.7 million in a registered direct
offering of approximately 14.1 million units at a price of
$1.47 per unit, which represents a
premium to the Company's closing price on October 9, 2014. Each unit consists of one share
of the Company's common stock and a warrant to purchase 0.5 shares
of the Company's common stock at an exercise price of $1.75 per share, which represents approximately a
25% premium to the Company's closing stock price on October 9, 2014. These warrants will have a term
of exercise equal to five years from the first date of exercise,
which is immediately following the closing date. This financing was
allocated to both existing and new investors, including lead
investor Great Point Partners, LLC.
Synthetic Biologics plans to use the proceeds primarily to
advance the clinical development of its C. difficile
preventative and constipation-predominant irritable bowel syndrome
(C-IBS) therapeutic programs, as well as for general corporate
purposes.
William Blair & Company,
L.L.C. acted as the sole placement agent for the transaction.
This transaction is expected to close on or before October 15, 2014, subject to satisfaction of
customary closing conditions.
The securities described above are being offered pursuant to a
shelf registration statement (File No. 333-189794), which was
declared effective by the Securities and Exchange Commission
("SEC") on July 16, 2013. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy any of the securities described herein, nor
shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. When filed with
the SEC, copies of the prospectus supplement and the accompanying
base prospectus relating to this offering may be obtained at the
SEC's website at http://www.sec.gov, or by request to William Blair & Company, L.L.C., Attention:
Prospectus Department, 222 West Adams Street, Chicago, IL 60606, by telephone at (800)
621-0687, or by e-mail at prospectus@williamblair.com.
About Synthetic Biologics, Inc.
Synthetic Biologics, Inc. (NYSE MKT: SYN) is a biotechnology
company focused on the development of novel anti-infective biologic
and drug candidates targeting specific pathogens that cause serious
infections and diseases. The Company is developing an oral biologic
to protect the gastrointestinal microflora from the effects of IV
antibiotics for the prevention of Clostridium difficile (C.
difficile) infection, an oral treatment to reduce the impact of
methane producing organisms on constipation-predominant irritable
bowel syndrome (C-IBS), a series of monoclonal antibodies for the
treatment of Pertussis and Acinetobacter infections, and a
biologic targeted at the prevention and treatment of a root cause
of a subset of IBS. In addition, the Company is developing an oral
estriol drug for the treatment of relapsing-remitting multiple
sclerosis (MS) and cognitive dysfunction in MS. For more
information, please visit Synthetic Biologics' website at
www.syntheticbiologics.com.
This release includes forward-looking statements on Synthetic
Biologics' current expectations and projections about future
events. In some cases forward-looking statements can be identified
by terminology such as "may," "should," "potential," "continue,"
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," and similar expressions. These statements are based
upon current beliefs, expectations and assumptions and are subject
to a number of risks and uncertainties, many of which are difficult
to predict and include statements with respect to this
offering and the successful execution of the Company's business
strategy, including its intended use of proceeds. The
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from those set
forth or implied by any forward-looking statements. Important
factors that could cause actual results to differ materially from
those reflected in Synthetic Biologics' forward-looking statements
include, among others, the additional clinical studies and results
not meeting expectations, the inability to commence and complete
clinical trials when anticipated and other factors described in
Synthetic Biologics' report on Form 10-K for the year ended
December 31, 2013 and any other
filings with the SEC. The information in this release is provided
only as of the date of this release, and Synthetic Biologics
undertakes no obligation to update any forward-looking statements
contained in this release on account of new information, future
events, or otherwise, except as required by law.
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SOURCE Synthetic Biologics, Inc.