RECENT NEWS:
Akesis Pharmaceuticals Enters into Bridge Financing Transaction
SAN DIEGO, Sep 30, 2008 (BUSINESS WIRE) -- Akesis Pharmaceuticals, Inc. (OTCBB: AKES), an emerging diabetes drug-development company, today announced that, on September 29, 2008, it entered into a Note and Warrant Purchase Agreement with Avalon Ventures VII, L.P. Pursuant to the Note and Warrant Purchase Agreement, the Company has the ability to sell to Avalon Ventures one or more convertible promissory notes maturing February 1, 2009 in an aggregate principal amount of up to $2.0 million. Each note will automatically convert into shares of the Company's preferred stock in the event of the closing, prior to February 1, 2009, of a preferred stock financing resulting in aggregate gross proceeds to the Company of at least $2.0 million (including amounts received in connection with the conversion of the notes) and will be issued together with a five-year warrant to purchase additional shares of such preferred stock. An initial closing of the sale of notes and warrants was held on the Effective Date of the Note and Warrant Purchase Agreement and involved the sale to Avalon Ventures of a note (and a corresponding warrant) representing an initial principal amount of $1.0 million.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities issued pursuant to the Note and Warrant Purchase Agreement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, and applicable state securities laws or an applicable exemption from registration requirements.
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