8:50AM Penwest Pharma announces an 8.14 mln unit (each unit consisting of 1 share of stock and 1 warrant to purchase 1/2 share of stock) offering for a for a purchase price of $3.0825 per unit (PPCO) 3.03 :
Penwest Announces $25.1 Million Private Placement of Common Stock and Warrants
DANBURY, Conn., March 6, 2008 (PRIME NEWSWIRE) -- Penwest Pharmaceuticals Co. (Nasdaq:PPCO) today announced that it has entered into a securities purchase agreement with certain institutional accredited investors with respect to the private placement of 8.14 million units (each unit consisting of one share of common stock of the Company and one warrant to purchase one-half share of common stock) for a purchase price of $3.0825 per unit, or gross proceeds of $25.1 million. An aggregate of 8.14 million shares of common stock and warrants for the purchase of an aggregate of 4.07 million shares of common stock will be issued by the Company upon the closing of the private placement, which is subject to satisfaction of customary closing conditions.
The Company expects that the private placement will result in net proceeds of approximately $23.2 million to the Company, after deducting the placement agent's fees and estimated offering expenses payable by the Company. The Company intends to use the net proceeds to fund development of product candidates in its pipeline, including a Phase IIb clinical trial of nalbuphine ER and Phase I trials of A0001, and for working capital and other general corporate purposes.
The securities offered by the Company in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This notice is issued pursuant to Rule 135c under the Securities Act of 1933 and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
surf's up......crikey
