Avicena Group Announces Closing of Private Offering
September 26 2007 - 10:30AM
PR Newswire (US)
Financing To Accelerate Trials and Commercialization PALO ALTO,
Calif., Sept. 26 /PRNewswire-FirstCall/ -- Avicena Group, Inc.
(OTC:AVGO) (BULLETIN BOARD: AVGO) , a late-stage biotechnology
company that develops central nervous system therapeutics for
neurodegenerative diseases, announced today that it had conducted
an initial closing of its private offering of Preferred Stock and
warrants. The Company received gross proceeds of $3,110,000 and in
exchange sold 3,110 shares of newly designated Series C Convertible
Preferred Stock, which are convertible (at $3.35 per share) into
928,358 shares of Common Stock, along with three classes of
warrants: C-1 Warrants, exercisable for up to five years at $4.19
per share to purchase an additional 696,269 shares of Common Stock;
C-2 warrants, exercisable for 12 months at $4.61 per share to
purchase an additional 674,620 shares and C-3 warrants, exercisable
for five years to purchase up to 75% of the number of shares
acquired upon exercise of the C-2 warrants, up to a maximum of
505,965 shares. The shares were sold to institutional and
accredited investors located in the U.S. and abroad. Proceeds from
this offering are expected to support ongoing clinical development,
regulatory submissions, and potential commercialization of
Avicena's lead programs in rare neurological disorders that
represent a severe, unmet medical need. Avicena also plans to
dedicate a portion of these proceeds towards supporting the launch
of its proprietary skin care line, Nurigene. Belinda
Tsao-Nivaggioli, Ph.D., CEO of Avicena, stated, "I am extremely
pleased that our Company has obtained additional equity capital to
support the significant next phases of the Company's research and
commercialization activities." ABOUT AVICENA Avicena Group, Inc.
(OTC:AVGO) (BULLETIN BOARD: AVGO) is a Palo Alto, California- based
late stage biotechnology company that develops central nervous
system therapeutics for neurodegenerative diseases. Avicena
presently derives revenue from the sale of proprietary
dermaceutical ingredients to skin care manufacturers. The
announcement of the placement of securities detailed in this press
release shall not constitute an offer to sell or a solicitation of
an offer to buy the securities. Neither the securities issued in
the private placement, or the Common Stock issuable upon exercise
or conversion of such securities have been registered under the
Securities Act of 1933 or any state securities laws, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and state securities laws. Contact: The Ruth Group
(on behalf of Avicena Group) Stephanie Carrington / Sara Ephraim /
(investors) (646) 536-7017 / 7002 or Janine McCargo / Jason Rando
(media) (646) 536-7033 / 7025 or DATASOURCE: Avicena Group, Inc.
CONTACT: Investors: Stephanie Carrington, +1-646-536-7017, , or
Sara Ephraim, +1-646-536-7002, , or Media: Janine McCargo,
+1-646-536-7033, , or Jason Rando, +1-646-536-7025, , all of The
Ruth Group for Avicena Group, Inc.
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