SARASOTA, Fla., Oct. 15,
2015 /PRNewswire/ -- Rock Creek Pharmaceuticals, Inc., (NASDAQ:
RCPI), a clinical stage, drug development company which is focused
on the application of its lead compound being developed to treat
chronic inflammatory conditions, announced today that the Company
has entered into an agreement with two healthcare focused,
institutional investors to issue $20
million of senior convertible notes.
Dr. Michael Mullan, (MBBS, PhD),
Chairman and Chief Executive Officer of Rock Creek Pharmaceuticals,
commented, "This funding will provide the necessary capital to
continue to advance our lead compound through human clinical
trials. It is also important that we have strengthened our
relationships with members of the institutional healthcare
investment community and we are appreciative of these investors'
foresight, and most notably, their confidence in the Company and
its clinical development program."
The senior convertible notes (the "Notes")
will be payable in 20 monthly installments, mature 36 months
from issuance and will accrue interest at 8.0% per annum from
the date of issuance. The Notes may be repaid, at the
Company's election, in either cash or, subject to certain
conditions, shares of the Company's common stock at a discount to
the then-current market price. The Notes are also convertible from
time to time, at the election of the holders, into shares of
the Company's common stock at an initial conversion price of
$1.12 per share. Rock Creek
Pharmaceuticals expects to use the proceeds from
the convertible notes for general corporate purposes and
ongoing funding of the Company's drug development programs.
The proceeds from the offering will be deposited into a restricted
account from which proceeds will be released over specified time
periods and based on the Company meeting certain milestones and
conditions, and the Notes will be secured by such accounts but
otherwise unsecured. The offering is expected to close on or
around October 15, 2015.
The Notes include certain covenants, including, among
others, the timely payment of principal
and interest, certain limitations on the incurrence of indebtedness,
restrictions on the redemption of outstanding securities, the
filing of a resale registration statement, seeking stockholder
approval of the transaction, restrictions on the transfer of
assets and restrictions on the existence of liens on the company's
assets.
Maxim Group acted as the sole placement agent in connection with
the transaction.
For additional information concerning the details
of the financing, please refer to the Form 8-K filed with
the Securities and Exchange Commission today.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of the
Company in this offering. There shall not be any offer,
solicitation of an offer to buy, or sale of
securities in any state or jurisdiction in
which such an offering, solicitation, or sale
would be unlawful prior to registration or qualification under
the securities laws of any such state or
jurisdiction. Any offering will be made
only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration
statement.
About Anatabine Citrate:
Rock Creek Pharmaceuticals' compound is a small molecule,
cholinergic agonist which exhibits anti-inflammatory
pharmacological characteristics, distinct from other
anti-inflammatory drugs available such as biologics, steroids and
non-steroidal anti-inflammatories. The Company has sponsored
extensive pre-clinical (in vitro and in vivo) studies resulting in
peer reviewed and published scientific journal articles, covering
models of Multiple Sclerosis, Alzheimer's Disease, and Auto-Immune
Thyroiditis. All these studies demonstrated the anti-inflammatory
effects of the Company's compound. The Company's compound is in
formal regulatory development as a pharmaceutical.
About Rock Creek Pharmaceuticals, Inc.:
Rock Creek Pharmaceuticals, Inc. is clinical stage drug
development, company focused on the discovery, development and
commercialization of new drugs, formulations and compounds that
provide therapies for chronic and acute inflammatory diseases.
For more information, visit:
http://www.rockcreekpharmaceuticals.com
Forward Looking Statements:
Certain statements contained in this release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to statements identified by words such as
"believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. The
statements in this release are based upon the current beliefs and
expectations of our company's management and are subject to
significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements. Numerous factors
could cause or contribute to such differences, including, but not
limited to, failure to obtain sufficient capital resources to fund
our development program and operations, results of clinical trials
and/or other studies, the challenges inherent in new product
development initiatives, including the continued development and
approval of anti-inflammatory drug candidates, the effect of any
competitive products, our ability to license and protect our
intellectual property, our significant payables, our ability to
raise additional capital in the future that is necessary to
maintain our business, changes in government policy and/or
regulation, potential litigation by or against us, any governmental
review of our products or practices, pending litigation matters, as
well as other risks discussed from time to time in our filings with
the Securities and Exchange Commission, including, without
limitation, our annual report on Form 10-K for the fiscal year
ended December 31, 2014 filed on
March 12, 2015. We undertake no duty
to update any forward-looking statement or any information
contained in this press release or in other public disclosures at
any time.
CONTACT:
Ted Jenkins
Vice President, Corporate Strategy & Development
Rock Creek Pharmaceuticals
2040 Whitfield Avenue, Suite 300
Sarasota, FL 34243
Direct: 941-251-0488
tjenkins@rockcreekpharmaceuticals.com
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SOURCE Rock Creek Pharmaceuticals, Inc.