Gentium Completes $10.9 Million Private Placement
October 17 2005 - 6:00AM
Business Wire
Gentium S.p.A. (AMEX:GNT) (the "Company") announced today that it
has completed its previously announced $10.9 million private
placement of 1,551,125 of its American Depository Shares (ADSs) at
a price of $7.05 per ADS. Subject to shareholder approval,
investors in the financing will also receive warrants to purchase
620,452 ADSs at an exercise price of $9.69 per ADS. The purchase
price is subject to reduction of 20% if the Company's shareholders
do not approve the issuance of the warrants within 180 days. Funds
managed by Great Point Partners, LLC were the lead investors in the
transaction. Rodman & Renshaw LLC acted as the lead placement
agent for the offering, and Maxim Group LLC and I-Bankers
Securities Incorporated were co-placement agents. The net proceeds
from the offering will be used to fund additional costs relating to
the Company's upcoming Phase III trial of Defibrotide to treat
Severe VOD, the Company's portion of the costs related to the
recently announced Phase I/II trial of Defibrotide to treat
Multiple Myeloma, the continued development of the Company's other
product candidates, and for general corporate purposes. The ADSs
sold in the private placement and the shares issuable upon exercise
of the related warrants 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 without being
registered with the Securities and Exchange Commission (SEC) or
through an applicable exemption from SEC registration requirements.
The shares were offered and sold only to qualified institutional
buyers and a limited number of accredited investors. The Company
has agreed to file a registration statement with the SEC covering
the resale of the ADSs issued in the private placement and issuable
upon exercise of the warrants. About VOD Severe VOD is a
potentially life-threatening condition in which some of the veins
in the liver are blocked as a result of toxic cancer treatments
such as chemotherapy, radiation, hormone therapy, and bone marrow
and stem cell transplants. Based on the Company's review of more
than 200 published papers in the medical literature, it is
estimated that approximately 80% of patients with Severe VOD die
within 100 days without treatment. There are no currently approved
treatments for Severe VOD. About the Company Gentium S.p.A. is a
biopharmaceutical company located in Villa Guardia (Como) that is
focused on the research, discovery, and development of drugs
derived from DNA extracted from natural sources, and drugs which
are synthetic derivatives, to treat and prevent a variety of
vascular diseases and conditions related to cancer and cancer
treatments. Defibrotide, the Company's lead product candidate in
the U.S., is an investigational drug that has been granted Orphan
Drug status by the U.S. FDA to treat veno-occlusive disease (VOD)
with multiple organ failure ("Severe VOD") and Fast Track
designation for the treatment of Severe VOD in recipients of stem
cell transplants. Cautionary Note Regarding Forward-Looking
Statements This press release contains "forward-looking
statements." In some cases, you can identify these statements by
forward-looking words such as "may," "might," "will," "should,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of these terms, and other
comparable terminology. These statements are not historical facts
but instead represent the Company's belief regarding future
results, many of which, by their nature, are inherently uncertain
and outside the Company's control. It is possible that actual
results may differ, possibly materially, from those anticipated in
these forward-looking statements. For a discussion of some of the
risks and important factors that could affect future results, see
the discussion in our Prospectus filed with the Securities and
Exchange Commission under Rule 424(b)(4) under the caption "Risk
Factors." GNT - G
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