SAN DIEGO, Nov. 13, 2014 /PRNewswire/ -- Mast
Therapeutics, Inc. (NYSE MKT: MSTX), a clinical-stage
biopharmaceutical company, today announced the closing of its
previously announced underwritten public offering of equity
securities. Gross proceeds from the offering were
$21 million and the Company estimates net proceeds from the
offering will be approximately $20
million, after deducting underwriting discounts and
commissions and estimated offering expenses. The Company
intends to use the net proceeds primarily to fund its clinical
development programs, including EPIC, the Company's ongoing pivotal
Phase 3 study of MST-188 in sickle cell disease, and for working
capital and general corporate purposes.
The Company sold 30,941,102 Series A units at a purchase price
per unit of $0.48. Each Series
A unit consisted of one share of common stock and one-half (0.5) of
a warrant. Each whole warrant is exercisable for one share of
common stock at an initial exercise price of $0.75 per share. As a component of the offering
and in lieu of Series A units that include common stock, the
Company also sold 13,081,428 Series B units at a purchase
price per unit of $0.47. Series
B units were offered only to those purchasers whose purchase of
additional Series A units in the offering would otherwise have
resulted in the purchaser beneficially owning more than 4.99% of
the Company's outstanding common stock following the completion of
the offering. Each Series B unit consisted of one pre-funded
warrant to purchase one share of common stock at an initial
exercise price of $0.01 per share and
one-half (0.5) of a warrant. Each whole warrant is
exercisable for one share of common stock at an initial exercise
price of $0.75 per share.
Cowen and Company, LLC acted as sole book-running manager.
Canaccord Genuity Inc. acted as lead manager and Laidlaw &
Company (UK) Ltd. and Merriman Capital, Inc. acted as co-managers
for the offering.
The offering was made pursuant to a shelf registration statement
previously filed with the Securities and Exchange Commission and
declared effective on May 1, 2012.
Copies of the final prospectus relating to the offering may
be obtained by contacting: Cowen and Company, c/o Broadridge
Financial Services, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus
Department, or by calling (631) 274-2806. Copies also are
available on the Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the Company's
securities. No offer, solicitation or sale shall be made in
any state or other jurisdiction in which such offer, solicitation
or sale is unlawful.
About Mast Therapeutics
Mast Therapeutics, Inc. is a
publicly traded biopharmaceutical company headquartered in
San Diego, California. The
Company is leveraging the MAST (Molecular Adhesion and Sealant
Technology) platform, derived from over two decades of clinical,
nonclinical and manufacturing experience with purified and
non-purified poloxamers, to develop MST-188, its lead product
candidate, for serious or life-threatening diseases and conditions
typically characterized by impaired microvascular blood flow and
damaged cell membranes.
Forward Looking Statements
Mast Therapeutics cautions
you that statements included in this press release that are not a
description of historical facts are forward-looking statements that
are based on the Company's current expectations and assumptions.
Such forward-looking statements include, but are not limited to,
statements regarding estimated net proceeds from the offering and
the intended use of such proceeds. Among the factors that
could cause or contribute to material differences between the
Company's actual results and the expectations indicated by the
forward-looking statements are risks and uncertainties that
include, but are not limited to: actual expenses related to the
offering; the uncertainty of outcomes in ongoing and future studies
of the Company's product candidates and the risk that its product
candidates, including MST-188, may not demonstrate adequate safety,
efficacy or tolerability in one or more such studies, including
EPIC; delays in the commencement or completion of clinical studies,
including as a result of difficulties in obtaining regulatory
agency agreement on clinical development plans or clinical study
design, opening trial sites, enrolling study subjects,
manufacturing sufficient quantities of clinical trial material,
being subject to a "clinical hold," and/or suspension or
termination of a clinical study, including due to patient safety
concerns or lack of funding; the potential for the Company to
delay, reduce or discontinue current and/or planned development
activities, including clinical studies, partner its product
candidates at inopportune times or pursue less expensive but
higher-risk and/or lower return development paths if it is unable
to raise sufficient additional capital as needed; the potential for
institutional review boards or the FDA or other regulatory agencies
to require additional nonclinical or clinical studies prior to
initiation of a planned clinical study of a product candidate; the
risk that, even if clinical studies are successful, the FDA or
other regulatory agencies may determine they are not sufficient to
support a new drug application; the potential that, even if
clinical studies of a product candidate in one indication are
successful, clinical studies in another indication may not be
successful; the Company's reliance on contract research
organizations (CROs), contract manufacturing organizations (CMOs),
and other third parties to assist in the conduct of important
aspects of development of its product candidates, including
clinical studies, manufacturing, and regulatory activities for its
product candidates, and that such third parties may fail to perform
as expected; the risk that, even if the Company successfully
develops a product candidate in one or more indications, it may not
realize commercial success with its products and may never generate
revenue sufficient to achieve profitability; the risk that the
Company is not able to adequately protect its intellectual property
rights relating to the MAST platform and MST-188 or AIR001 and
prevent competitors from duplicating or developing equivalent
versions of its product candidates; and other risks and
uncertainties more fully described in the Company's press releases
and periodic filings with the Securities and Exchange Commission,
including the preliminary prospectus supplement related to the
offering. The Company's public filings with the Securities and
Exchange Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. Mast
Therapeutics does not intend to revise or update any
forward-looking statement set forth in this press release to
reflect events or circumstances arising after the date hereof,
except as may be required by law.
Logo -
http://photos.prnewswire.com/prnh/20120612/LA22456LOGO-a
SOURCE Mast Therapeutics, Inc.