Aeolus Pharmaceuticals Announces $3.2 Million Private Placement Financing
February 19 2013 - 5:46PM
Marketwired
Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS), a biotechnology company
leveraging significant government funding to develop a platform of
novel compounds to protect against radiological and chemical
threats and for use in oncology, announced today that it has
entered into definitive agreements with certain institutional and
other accredited investors to raise gross proceeds of $3.2 million
in a private placement financing. The investors comprised both new
and existing investors in the Company, including entities
associated with BVF Partners L.P., a leading life sciences
investment firm, which manages the Biotechnology Value Fund family
of funds.
Pursuant to the purchase agreement, Aeolus has agreed to issue
an aggregate of 12,900,000 shares of the Company's common stock at
a price per share of $0.25, as well as 5-year warrants to purchase
up to an aggregate of 12,900,000 shares of common stock with an
exercise price of $0.25 per share.
Net proceeds from this offering will be used for general
corporate and working capital purposes, primarily to continue
development of AEOL10150 as a medical countermeasure for the
pulmonary effects of acute radiation syndromes, under a development
contract with BARDA. The closing of the offering is expected to
occur on February 20, 2013.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg
Thalmann Financial Services Inc. (NYSE MKT: LTS), served as the
exclusive placement agent for the offering. Columbia Capital
Securities, Inc., and Monarch Bay Associates, LLC provided advisory
services to Aeolus.
The securities offered in this private placement transaction
have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or applicable state securities
laws. Accordingly, the securities may not be offered or sold in the
United States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state
securities laws. Pursuant to the terms of a registration rights
agreement entered into with the investors, Aeolus has agreed to
file a registration statement with the Securities and Exchange
Commission registering the resale of the shares of common stock
sold in the offering and issuable upon exercise of the warrants.
Any offering of Aeolus' securities under the resale registration
statement referred to above will be made only by means of a
prospectus.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor shall there be
any sale of the 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 such jurisdiction.
About AEOL 10150 AEOL 10150 is a
broad-spectrum catalytic antioxidant specifically designed to
neutralize reactive oxygen and nitrogen species. The neutralization
of these species reduces oxidative stress, inflammation, and
subsequent tissue damage-signaling cascades resulting from
radiation exposure. AEOL 10150 may have a profound beneficial
impact on people who have been exposed, or are about to be exposed,
to high-doses of radiation in the treatment of oncology.
AEOL 10150 has performed well in preclinical and non-clinical
studies, demonstrating statistically significant survival efficacy
in an acute radiation-induced lung injury model, and was
well-tolerated in two human clinical trials. The Company believes
it could have a profound beneficial impact on people who have been
exposed, or are about to be exposed, to high-doses of radiation,
whether from cancer therapy or a nuclear event.
About Aeolus Pharmaceuticals Aeolus
Pharmaceuticals is developing a platform of a new class of
broad-spectrum, catalytic-antioxidant compounds that protect
healthy tissue from the damaging effects of radiation. Its first
compound, AEOL 10150, is being developed for oncology indications,
where it is used in combination with radiation therapy. It is also
being developed, with funding by the US Department of Health and
Human Services, as a medical countermeasure against chemical and
radiological weapons, where its initial target indications are as a
protective agent against the effects of acute radiation syndrome
and delayed effects of acute radiation exposure. Aeolus' strategy
is to leverage the substantial investment in toxicology,
manufacturing, and preclinical and clinical studies made by US
Government agencies in AEOL 10150, including the contract with
BARDA valued, with options, at up to $118.4 million, to efficiently
develop the compound for use in oncology. For more information,
please visit Aeolus's corporate website at
www.aeoluspharma.com.
Forward-Looking Statements The statements
in this press release that are not purely statements of historical
fact are forward-looking statements. Such statements include, but
are not limited to, those relating to Aeolus' product candidates,
as well as its proprietary technologies and research programs, the
Company's potential initiation of large efficacy studies in mice
and NHPs, as well as a phase 1 study in healthy normal volunteers,
the BARDA Contract, and the expected use of proceeds from the
financing. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
Aeolus' actual results to be materially different from historical
results or from any results expressed or implied by such
forward-looking statements. Important factors that could cause
results to differ include risks associated with uncertainties of
progress and timing of clinical trials, scientific research and
product development activities, difficulties or delays in
development, testing, obtaining regulatory approval, the need to
obtain funding for pre-clinical and clinical trials and operations,
the scope and validity of intellectual property protection for
Aeolus' product candidates, proprietary technologies and their
uses, and competition from other biopharmaceutical companies, and
whether BARDA exercises one or more additional options under the
BARDA Contract. Certain of these factors and others are more fully
described in Aeolus' filings with the Securities and Exchange
Commission, including, but not limited to, Aeolus' Annual Report on
Form 10-K for the year ended September 30, 2012. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.
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Contact: Russell Skibsted Sr. Vice President and Chief Financial
Officer Aeolus Pharmaceuticals, Inc. 1-(949) 481-9825
Aeolus Pharmaceuticals (CE) (USOTC:AOLS)
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