THE WOODLANDS, Texas,
Dec. 23, 2011 /PRNewswire/ -- Lexicon
Pharmaceuticals, Inc. (Nasdaq: LXRX) announced today that it has
completed its previously announced rights offering pursuant to an
effective shelf registration statement. Under the rights
offering, an aggregate of 142,492,883 shares of common stock will
be issued at a subscription price of $1.13 per share, resulting in aggregate gross
proceeds to Lexicon of approximately $161
million.
"We are pleased to announce the successful completion of our
rights offering and appreciate the strong participation of our
shareholders as we continue to advance our programs through key
clinical milestones," said Arthur T.
Sands, president and chief executive officer of Lexicon.
"This additional investment provides us with added financial
strength and flexibility as we begin to advance our programs
towards late-stage development and commercialization."
Lexicon conducted the rights offering at the election of two of
its largest stockholders, Invus, L.P. and Invus C.V., pursuant to
their contractual rights to require Lexicon to initiate a pro rata
rights offering to its stockholders. Invus, L.P. and its
affiliates subscribed for an aggregate of 115,044,247 shares of
common stock in the rights offering and will beneficially own
approximately 58.3% of Lexicon's outstanding common stock following
completion of the rights offering.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, these securities, nor will there
be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale is not permitted.
About Lexicon
Lexicon is a biopharmaceutical company focused on discovering
breakthrough treatments for human disease. Lexicon currently
has four drug programs in mid-stage development for diabetes,
irritable bowel syndrome, carcinoid syndrome and rheumatoid
arthritis, all of which were discovered by Lexicon's research
team.
Safe Harbor Statement
This press release contains "forward-looking statements,"
including statements relating to Lexicon's expectations regarding
the completion, timing and size of the rights offering. Any
statements contained in this press release that are not statements
of historical fact may be deemed to be forward-looking
statements. Words such as "anticipated," "will," "proposed"
and similar expressions are intended to identify these
forward-looking statements. There are a number of important
factors that could cause Lexicon's results to differ materially
from those indicated by these forward-looking statements, including
risks and uncertainties related to market conditions and the
satisfaction of customary closing conditions related to the rights
offering.. Additional risks and uncertainties relating
to the rights offering, Lexicon and its business can be found under
the headings "Factors Affecting Forward Looking Statements" and
"Risk Factors" in Lexicon's annual report on Form 10-K for the year
ended December 31, 2010, as filed with the Securities and
Exchange Commission, in Lexicon's other filings with the Securities
and Exchange Commission and under the heading "Risk Factors" in the
final prospectus supplement relating to the rights offering as
filed with the Securities and Exchange Commission. Unless
required by applicable law, Lexicon undertakes no obligation to
update or revise any such forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE Lexicon Pharmaceuticals, Inc.