Memory Pharmaceuticals Closes Final Tranche of Equity Financing with The Stanley Medical Research Institute
Tuesday August 26, 6:05 am ET
- Results in Proceeds of $2.0 Million -
MONTVALE, N.J., Aug. 26 /PRNewswire-FirstCall/ -- Memory Pharmaceuticals Corp. (Nasdaq: MEMY - News) today announced that it has secured $2.0 million through the sale of approximately 4.7 million shares of common stock at $0.42 per share under its June 2007 equity financing agreement with an investment group led by The Stanley Medical Research Institute (SMRI). Memory Pharmaceuticals exercised its option to complete the third and final tranche following the achievement of a predefined milestone related to the Phase 2a trial of R3487/MEM 3454 in cognitive impairment associated with schizophrenia (CIAS). Under the terms of the financing agreement, the shares were priced at a 17% premium to the average closing sale price of the Company's common stock for the ten days ending on the day of the Company's achievement of the specified milestone.
"We appreciate SMRI's long-standing support for this program and we are pleased that we have once again been able to translate our progress into an opportunity to raise capital at a premium," stated Vaughn M. Kailian, President and Chief Executive Officer of Memory Pharmaceuticals. "Cognitive impairment is a major component of schizophrenia that contributes to a patient's dysfunction, and our ongoing Phase 2a trial will provide us with important insights on R3487/MEM 3454's potential efficacy in this indication."
In June 2007, Memory entered into an equity financing agreement with the investment group led by SMRI for the sale of up to $6.0 million of common stock in three tranches. The Company closed the first $2.0 million tranche in June 2007, and exercised its option to secure an additional $2.0 million in a second tranche in June 2008. With today's announcement, the Company has received the maximum $6 million under the equity financing agreement with SMRI.
surf's up......crikey
