WARRINGTON, Pa., Feb. 15, 2017 /PRNewswire/ -- Windtree
Therapeutics, Inc. (Nasdaq: WINT), a biotechnology company
focused on developing aerosolized KL4 surfactant therapies for
respiratory diseases, today announced that it has completed a
$10.5 million private placement of
convertible preferred stock units and now expects that it has
sufficient capital to fund its operations through the
AEROSURF® phase 2b clinical trial data release in
mid-2017.
Windtree has received gross proceeds of approximately $10.5
million (including approximately $1.6
million in non-cash consideration in the form of a reduction
in future payments of current development services
expenses) from the sale of 7,049 Series A Convertible
Preferred Stock Units at a purchase price per unit of $1,495. Each unit consists of one share of
Series A Convertible Preferred Stock, which is convertible into
1,000 shares of the Company's common stock, and 1,000 Series A-1
seven-year warrants to purchase one share of the Company's common
stock at an exercise price of $1.37.
In connection with the closing, Windtree has entered into a
Registration Rights Agreement with the buyers of the units to
provide for registration of the shares of common stock issuable
upon conversion of the Preferred Stock and exercise of the
warrants. The Company agreed to use commercially reasonable
efforts to file a registration statement with the Securities and
Exchange Commission within 50 calendar days following the closing
date of the private placement, and to cause such registration
statement to be declared effective by the Securities and Exchange
Commission within periods designated in the Registration Rights
Agreement.
Both existing and new investors participated in this financing.
In addition, certain officers and directors of the Company
participated in the private placement and purchased an aggregate of
67 Series A Convertible Preferred Stock Units.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
The securities sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United
States absent registration with the Securities and Exchange
Commission or an applicable exemption from such registration
requirements. The securities were offered only to accredited
investors.
Terms of the private placement can be found in a Form 8-K to be
filed with the Securities and Exchange Commission.
About Windtree Therapeutics
Windtree Therapeutics,
Inc. is a clinical-stage biotechnology company focused on
developing novel surfactant therapies for respiratory diseases
and other potential applications. Windtree's proprietary technology
platform includes a synthetic, peptide-containing surfactant (KL4
surfactant) that is structurally similar to endogenous pulmonary
surfactant and novel drug-delivery technologies being developed to
enable noninvasive administration of aerosolized KL4
surfactant. Windtree is focused initially on improving the
management of respiratory distress syndrome (RDS) in premature
infants and believes that its proprietary technology may make it
possible, over time, to develop a pipeline of KL4 surfactant
product candidates to address a variety of respiratory diseases for
which there are few or no approved therapies.
For more information, please visit the Company's website at
www.windtreetx.com.
Forward-Looking Statements
To the extent
that statements in this press release are not strictly historical,
all such statements are forward-looking, and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from the statements made. Examples of such
risks and uncertainties, including those related to projections of
future cash balances and anticipated cash outflows, risks related
to Windtree's securities offering and its development activities
and programs, are described in Windtree's filings with the
Securities and Exchange Commission including the most recent
reports on Forms 10-K, 10-Q and 8-K, and any amendments
thereto.
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SOURCE Windtree Therapeutics, Inc.