DOR BioPharma Secures $6 Million Equity Commitment from Fusion Capital
By BusinessWire
Last Update: 1/19/2006 9:26:04 AM Data provided by
MIAMI, Jan 19, 2006 (BUSINESS WIRE) -- DOR BioPharma, Inc. ("DOR" or the "Company") (DOR), today announced that it has entered into a common stock purchase agreement with Fusion Capital Fund II, LLC, a Chicago based institutional investor, whereby Fusion Capital shall buy up to $6.0 million of the Company's common stock. These funds are expected to be used for general corporate purposes including the filing of its NDA for orBec(R).
Under the common stock purchase agreement, funding of the $6,000,000 shall occur from time to time over a 15 month period after the Securities & Exchange Commission ("SEC") has declared effective a registration statement covering the shares of common stock to be purchased by Fusion Capital. Each month during the term of the agreement, DOR has the right to sell to Fusion Capital up to $400,000 of its common stock at a price based upon the market price of the Company's common stock on the date of each sale without any fixed discount to the market price. The Company has the right to control the timing and the amount of stock sold to Fusion Capital and under certain conditions may increase or decrease the amount of stock sold to Fusion Capital. The Company also has the right to terminate the agreement at any time.
"We are very pleased with the favorable terms of this financing with Fusion Capital," commented Michael T. Sember, President and Chief Executive Officer of DOR BioPharma. "Fusion Capital has conducted extensive due diligence on DOR. They have a strong track record in biotechnology investments and this capital commitment demonstrates significant confidence in the future of DOR and its products. Their financing commitment will allow DOR to potentially raise a significant amount of capital efficiently over time and on a cost-effective basis from a single institutional investor. This equity commitment gives us tremendous flexibility and greater financial security as we continue to prepare for our NDA and MAA filings of orBec(R). We expect Fusion Capital will be a valuable and long-term financial partner to DOR."
