PPHM - Press ReleaseSource: Peregrine Pharmaceuticals, Inc.
Peregrine Pharmaceuticals Receives Over $4 Million in Cash
Friday June 27, 12:30 pm ET
Over $1.8 Million Raised From Institutional Investors; Additional $2.2 Million Received From Exercise of Warrants
TUSTIN, Calif., June 27 /PRNewswire-FirstCall/ -- Peregrine Pharmaceuticals, Inc. (Nasdaq: PPHM - News) announced today that it has received over $4 million in cash proceeds from a private placement with institutional investors and the exercise of outstanding warrants. These proceeds will help fund operations including the continued development of the company's Vascular Targeting Agent (VTA) clinical candidate.
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Peregrine believes it has sufficient cash on hand to fund its operations through at least the third quarter of its 2004 fiscal year excluding any revenues to be generated from Avid Bioservices, Inc., the company's wholly owned biologics manufacturing subsidiary. Additional funds are anticipated from signed contracts and pending proposals at Avid and from potential strategic initiatives set forth in the company's Form 10-Q filing for the quarter ended January 31, 2003.
The company raised gross proceeds of approximately $1.8 million with seven institutional investors. Under the financing terms, the company issued approximately 1.6 million shares of common stock at a purchase per share price equal to an approximate 10% discount to the trailing three-day average closing price of the company's common stock ended June 25, 2003, the date prior to the closing date. The company also granted the investors a six-month option to purchase additional shares of common stock from the company under the same terms as this offering.
The shares were sold pursuant to a shelf registration previously filed with the Securities and Exchange Commission. In connection with this offering, the company paid a cash fee to Olympus Securities, LLC equal to five percent of the gross proceeds received from the sale of shares.
The company also received approximately $2.2 million from the exercise of existing outstanding warrants issued in August 2002 for approximately 3.01 million shares of common stock.
"We continue to make progress on moving our strategic initiatives forward. The receipt of these funds will allow us to continue executing our business plan," said Steven King, president and CEO of Peregrine. "We continue to be encouraged by the high degree of interest being shown in our Cotara(TM), Vasopermeation Enhancing Agent (VEA) and Vascular Targeting Agent (VTA) technology platforms and the potential for partnering those technologies. We are continuing to move our own VTA and VEA candidates toward clinical trials, and we are pleased with the progress of Avid Bioservices. We anticipate continued growth of that business."
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