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Unigene Completes $3 Million Private Placement with Fusion Capital Unigene Terminates Fusion Common Stock Purchase Agreement
FAIRFIELD, N.J., Apr 13, 2005 (BUSINESS WIRE) --
Unigene Laboratories, Inc. (OTCBB: UGNE) announced that it has completed a $3 million private placement with Fusion Capital Fund II, LLC ("Fusion"). In conjunction with the private placement, Unigene has elected to terminate its common stock purchase agreement with Fusion, dated October 9, 2003, as amended.
Under the private placement, Unigene sold 2,123,142 shares of common stock and a five-year common stock purchase warrant to purchase up to 1,061,571 shares of common stock at an exercise price of $1.77 per share to Fusion. The common stock and warrant shares are not registered for sale and Unigene will file a registration statement covering the sale of the purchase shares and the warrant shares. A description of this transaction is provided in our Form 8-K filed on April 13, 2005.
"Fusion Capital, a long-standing investor in the company, has provided significant and timely financial support to Unigene in the past and we are pleased that they have decided to increase their ownership in Unigene," commented Dr. Warren P. Levy, President and CEO of Unigene. "We believe that our future financial requirements primarily will be met through sales of our nasal calcitonin product, which is currently awaiting approval by the FDA, and milestones from agreements with pharmaceutical partners, including GlaxoSmithKline, Novartis and Upsher-Smith."
About Unigene
Unigene Laboratories, Inc. is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Due to the size of the worldwide osteoporosis market, Unigene is targeting its initial efforts on developing calcitonin and PTH-based therapies. Unigene has licensed the U.S. rights for its nasal calcitonin product to Upsher-Smith Laboratories, worldwide rights for its oral PTH technology to GlaxoSmithKline and worldwide rights for its calcitonin manufacturing technology to Novartis. Unigene has received an approvable letter from the FDA for Fortical(R), its nasal calcitonin product for the treatment of osteoporosis. Unigene's patented oral delivery technology has successfully delivered, in preclinical and/or clinical trials, various peptides including calcitonin, PTH and insulin. Unigene's patented manufacturing technology is designed to cost-effectively produce peptides in quantities sufficient to support their worldwide commercialization as oral or nasal therapeutics.
Safe Harbor statements under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements regarding us and our business, financial condition, results of operations and prospects. Such forward-looking statements include those which express plans, anticipation, intent, contingency, goals, targets or future development and/or otherwise are not statements of historical fact. We have based these forward-looking statements on our current expectations and projections about future events and they are subject to risks and uncertainties known and unknown which could cause actual results and developments to differ materially from those expressed or implied in such statements. These forward-looking statements include statements about the following: general economic and business conditions, our financial condition, competition, our dependence on other companies to commercialize, manufacture and sell products using our technologies, the uncertainty of results of animal and human testing, the risk of product liability and liability for human trials, our dependence on patents and other proprietary rights, dependence on key management officials, the availability and cost of capital, the availability of qualified personnel, changes in, or the failure to comply with, governmental regulations, the failure to obtain regulatory approvals for our products and other risk factors discussed in our Securities and Exchange Commission filings.. Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "potential," "continue," and variations of these words (or negatives of these words) or similar expressions, are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various risk factors.
SOURCE: Unigene Laboratories, Inc
The Investor Relations Group
Investor Contact:
Damian McIntosh/Dian Griesel, Ph.D.
212-825-3210
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Copyright Business Wire 2005
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