Galectin Therapeutics Announces Pricing of $9.8 Million Registered Direct Offering
November 20 2015 - 9:00AM
Galectin Therapeutics Inc. (NASDAQ:GALT), the
leading developer of therapeutics that target galectin proteins to
treat fibrosis and cancer, today announced that it has entered into
securities purchase agreement with certain institutional investors
providing for the purchase and sale of 4,761,900 shares of common
stock at a price of $2.06 per share and warrants to purchase up to
3,571,425 shares of common stock with an exercise price of $2.50
per share. The warrants will be exercisable six months following
the closing date and will expire five years from the date they
become exercisable. The gross proceeds of the offering are expected
to be approximately $9.8 million.
The offering is expected to close on or about November 25, 2015,
subject to satisfaction of customary closing conditions. Net
proceeds of the offering, after placement and other fees and
estimated expenses payable by Galectin Therapeutics are expected to
be approximately $9.1 million. Galectin intends to use the proceeds
for clinical trial expenses, other research and development
expenses, and for general corporate purposes.
Roth Capital Partners acted as exclusive placement agent in
connection with the offering.
The shares of common stock were offered pursuant to a shelf
registration statement on Form S-3 (File No. 333-194747), which was
declared effective by the United States Securities and Exchange
Commission ("SEC") on March 31, 2014. The warrants and shares
issuable upon exercise of the warrants were offered in a concurrent
private placement and have not been registered under the Securities
Act of 1933, as amended. Galectin has agreed to file one or more
registration statements with the SEC covering the resale of the
shares of common stock issuable upon exercise of the warrants.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor will there be any sales of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
A prospectus supplement relating to the shares of common
stock will be filed by Galectin with the SEC. When available,
copies of the prospectus supplement, together with the accompanying
prospectus, can be obtained at the SEC's website at www.sec.gov or
from Roth Capital Partners, 888 San Clemente Drive, Suite 400,
Newport Beach, CA 92660, (800) 678-9147.
About Galectin Therapeutics
Galectin Therapeutics is developing promising carbohydrate-based
therapies for the treatment of fibrotic liver disease and cancer
based on the Company's unique understanding of galectin proteins,
which are key mediators of biologic function. Galectin seeks to
leverage extensive scientific and development expertise as well as
established relationships with external sources to achieve
cost-effective and efficient development. The Company is pursuing a
development pathway to clinical enhancement and commercialization
for its lead compounds in liver fibrosis and cancer. Additional
information is available at www.galectintherapeutics.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements relate to future events or future financial
performance, and use words such as "may," "estimate," "could,"
"expect" and others. They are based on management's current
expectations and are subject to factors and uncertainties that
could cause actual results to differ materially from those
described in the statements. The Company's current clinical trials
and any future clinical studies may not produce positive results in
a timely fashion, if at all, and could prove time consuming and
costly. Plans regarding development, approval and marketing of any
of Galectin's drugs are subject to change at any time based on the
changing needs of the Company as determined by management and
regulatory agencies. Regardless of the results of any
of its development programs, Galectin may be unsuccessful in
developing partnerships with other companies or raising additional
capital that would allow it to further develop and/or fund any
studies or trials. Galectin has incurred operating losses
since inception, and its ability to successfully develop and market
drugs may be impacted by its ability to manage costs and finance
continuing operations. For a discussion of additional factors
impacting Galectin's business, see the Company's Annual Report on
Form 10-K for the year ended December 31, 2014, and subsequent
filings with the SEC. You should not place undue reliance on
forward-looking statements. Although subsequent events may cause
its views to change, management disclaims any obligation to update
forward-looking statements.
Galectin Therapeutics and its associated logo is a registered
trademark of Galectin Therapeutics Inc.
CONTACT: Jack Callicutt, Chief Financial Officer
(678) 620-3186
ir@galectintherapeutics.com.
LHA
Kim Golodetz
(212) 838-3777
kgolodetz@lhai.com
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