BioSante Pharmaceuticals, Inc. (BPAX) today announced closing of a previously announced sale of an aggregate of $18 million of securities in a registered direct offering. BioSante received net proceeds of approximately $16.9 million after deducting placement agent fees and other offering expenses. BioSante sold an aggregate of approximately 10.6 million shares of its common stock and warrants to purchase up to approximately 5.3 million additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.50 of a share of common stock, was sold for a purchase price of $1.70, a premium to the closing price on the prior full trading day before the securities purchase agreements were signed.
The warrants to purchase additional shares are exercisable immediately at an exercise price of $2.00 per share and will expire on December 29, 2015. All of the securities were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including BioSante’s LibiGel Phase III clinical study program. LibiGel remains the lead pharmaceutical product in the U.S. in active development for the treatment of hypoactive sexual desire disorder (HSDD) in menopausal women, and BioSante believes that LibiGel has the potential to be the first product approved by the FDA for this common and unmet medical need.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc., (RODM), acted as the exclusive placement agent for the transaction. Roth Capital Partners, LLC, JMP Securities LLC, Oppenheimer & Co. Inc. and Trout Capital, LLC acted as financial advisors.
All of the securities were offered and sold pursuant to an effective shelf registration statement filed by BioSante with the Securities and Exchange Commission. This announcement is neither an offer to sell nor a solicitation of an offer to buy any shares of common stock or warrants of BioSante. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.
