Keryx Biopharmaceuticals Raises $15 Million Equity
November 18 2003 - 8:14AM
UK Regulatory
Keryx Biopharmaceuticals, Inc. Raises $15 Million In Private Equity
Transaction With Institutional Investors
NEW YORK, Nov. 18 / -- Keryx Biopharmaceuticals, Inc.
(Nasdaq: KERX; AIM: KRX), a biopharmaceutical company focused on the
acquisition, development and commercialization of novel pharmaceutical
products for the treatment of life-threatening diseases, including diabetes
and cancer, announced today that it has entered into definitive agreements
with several institutional investors relating to a private placement of
approximately $15 million in gross proceeds through the issuance of common
stock and warrants.
Michael S. Weiss, Chairman and Chief Executive Officer of Keryx, commented
on the transaction, "We are very pleased to have consummated this financing
with some of the highest-quality investors in the biotechnology sector. We
believe that this serves as strong validation of the promise of KRX-101 and
the Company. Following this offering, we will have approximately $34 million
in cash and cash equivalents, which should carry us well into 2006. The
additional funds will not only provide us with capital to support our current
and planned clinical programs for KRX-101, but will also with added
flexibility in our in-licensing and product acquisition program as we aim to
build out our pipeline with additional clinical-stage drug candidates."
Keryx sold a total of approximately 3.5 million shares in the transaction
at $4.25 per share. Each share was also accompanied by a 5 year warrant to
purchase 20% of a share with an exercise price of $6.00, for an aggregate of
approximately 705,000 warrant shares. Keryx has agreed to register the shares
of common stock and the shares issuable upon exercise of the warrants under
the Securities Act of 1933. Rodman & Renshaw acted as placement agent for
this transaction.
ABOUT KERYX BIOPHARMACEUTICALS, INC.
Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX; London AIM: KRX) is a
biopharmaceutical company focused on the acquisition, development and
commercialization of novel pharmaceutical products for the treatment of
life-threatening diseases, including diabetes and cancer. Keryx is developing
KRX-101 (sulodexide), a novel first-in-class oral heparinoid compound, for the
treatment of diabetic nephropathy, for which Keryx is currently conducting its
U.S.-based Phase II/III clinical program. Keryx also has an active
in-licensing program designed to identify and acquire clinical-stage drug
candidates. Additionally, Keryx is seeking partners for its KinAce(TM) drug
discovery technology and related products. Keryx Biopharmaceuticals is
headquartered in New York City.
The offering was made only to accredited investors, as such term is
defined in accordance with the Securities Act of 1933, as amended. The shares
of common stock and the warrants have not been registered under the Securities
Act of 1933, or any state securities laws. Therefore, they may not be offered
or sold in the United States absent registration under or exemption from the
Securities Act of 1933 and any applicable state securities laws. This
announcement is neither an offer to sell nor a solicitation of an offer to buy
shares of our common stock or warrants to purchase common stock.
Some of the statements included in this press release, particularly those
anticipating future financial performance, business prospects, growth and
operating strategies and similar matters, are forward-looking statements that
involve a number of risks and uncertainties. For those statements, we claim
the protection of the safe harbor for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995. Important factors may
cause our actual results to differ materially, including: our ability to
successfully begin and complete cost-effective clinical trials of KRX-101; our
ability to successfully in-license or acquire additional clinical-stage drug
candidates and to develop those on a cost-effective basis; and other risk
factors identified from time to time in our SEC reports, including, but not
limited to, the report on Form 10-K for the year ended December 31, 2002, and
our quarterly report on Form 10-Q for the quarter ended September 30, 2003.
Any forward-looking statements set forth in this news release speak only as of
the date of this news release. We do not intend to update any of these
forward-looking statements to reflect events or circumstances that occur after
the date hereof. This press release and prior releases are available at
www.keryx.com. The information in Keryx's website is not incorporated by
reference into this press release and is included as an inactive textual
reference only.
KERYX CONTACT:
Ron Bentsur
VP Finance and Investor Relations
Keryx Biopharmaceuticals, Inc.
Tel: 212-531-5965
E-mail: ron@keryx.com
SOURCE Keryx Biopharmaceuticals, Inc.
-0- 11/18/2003
/CONTACT: Ron Bentsur, VP Finance and Investor Relations of Keryx
Biopharmaceuticals, Inc., 212-531-5965, or ron@keryx.com/
/Web site: http://www.keryx.com /
(KERX)
END