[Rights offerings allow shareholders who have dry powder to avert dilution of their equity stake; on the other hand, these offerings guarantee that the share price will drop because it makes no sense to pay more for shares in the offering than they cost on the open market. The unit (share+warrant) price of the offering has not yet been set because the company had to see how far the share price would drop on the initial announcement.
PRW is IMO one of the crappiest biotech companies of all time (#msg-27310114, #msg-27318614, #msg-20386793, #msg-2596786, #msg-2596707); TerryHallinan was the only bull I’m aware of who posted here. As such, PRW hardly sets a precedent as to the way cash-strapped companies in this sector ought to raise capital.]
›Pro-Pharmaceuticals to Commence Rights Offering to Shareholders
Friday November 14, 7:00 am ET
Proceeds to be Used to Complete NDA for DAVANAT®
NEWTON, Mass.--(BUSINESS WIRE)--Pro-Pharmaceuticals, Inc. (NYSE Alternext US: PRW) announced that the Board of Directors has approved a rights offering to its shareholders whereby the Company will distribute non-tradable rights to purchase common stock and warrants. The offering will include a distribution of basic and over-subscription rights, each of which will be exercisable to purchase one share and one warrant.
The Company has engaged a dealer-manager and information agent to assist with the transaction. The Company intends to file a Form S-1 registration statement with the Securities and Exchange Commission to register this transaction. The commencement of the rights offering will occur promptly following the effectiveness of that registration statement. The Company plans to announce additional information regarding the rights offering at the time it files the registration statement.
"We intend to use the capital raised in this rights offering to meet our goal of getting our lead product in development, DAVANAT®, through the regulatory process and into the marketplace," stated David Platt, Ph.D., Chief Executive Officer, Pro-Pharmaceuticals, Inc. "We are devoting, and expect to continue to devote for the foreseeable future, substantially all of our resources to the preparation and filing a New Drug Application (NDA) with the U.S. Food & Drug Administration for DAVANAT® to treat colorectal cancer patients. DAVANAT® is our number one priority and the funds raised from our loyal shareholders in the rights offering will allow us to continue to focus on this priority.”
This news release does not constitute an offer to sell any of the Company’s securities.
About Pro-Pharmaceuticals, Inc. – Advancing Drugs Through Glycoscience®
Pro-Pharmaceuticals is a clinical and development stage pharmaceutical company engaged in the discovery, development and commercialization of carbohydrate-based, therapeutic compounds for advanced treatment of cancer, liver, microbial and inflammatory diseases. The Company’s initial focus is the development of carbohydrate polymers to treat cancer patients. DAVANAT®, the Company’s lead drug candidate, is a polysaccharide polymer that targets Galectin receptors on cancer cells. DAVANAT® is currently in a Phase II trial for colorectal cancer. The Company is headquartered in Newton, Mass. Additional information is available at www.pro-pharmaceuticals.com.‹
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