BioSante
Pharmaceuticals Announces $16.5 Million
Private
Placement of Common Stock
LINCOLNSHIRE,
Illinois (May 25, 2007) -- BioSante Pharmaceuticals, Inc. (Amex: BPA) today
announced that it has entered into definitive agreements with institutional
and
other accredited investors with respect to the private placement of 2,754,999
million shares of its common stock at a purchase price of $6.00 per share,
for
expected gross proceeds of approximately $16.5 million, before payment of
placement agent commissions and offering expenses. Investors also
will receive warrants to purchase 688,750 shares of common stock at an exercise
price of $8.00 per share. Rodman & Renshaw, LLC is serving as
lead placement agent with Oppenheimer & Co. Inc. serving as an additional
placement agent for the transaction. The transaction is expected to
be completed upon approval of an additional listing application by the American
Stock Exchange.
"We
are
pleased with this private placement, and are gratified to welcome new
institutional investors to BioSante," said Stephen M. Simes, BioSante's
president and chief executive officer. “We limited the private
placement to the amount raised to minimize dilution to our existing
stockholders, while adding to our cash balance”.
The
expected net proceeds of approximately $15.6 million will be used to continue
and expand BioSante’s previously announced Phase III clinical program of
LibiGel® for
treatment of female sexual dysfunction (FSD). The first of two Phase III
safety
and efficacy studies was initiated in December 2006. Based on its current
cash
balance and commitments, BioSante believes that with the net proceeds from
this
private placement, it should be able to maintain its current planned development
activities and the corresponding level of expenditures through the end of
2008,
although no assurance can be given that it will not need additional cash
prior
to such time.
The
securities offered in this placement have not been registered under the
Securities Act of 1933, as amended, or state securities laws, and cannot
be
offered or sold in the United States absent registration with the Securities
and
Exchange Commission (SEC) or an applicable exemption from the registration
requirements. As part of the transaction, the company has agreed to
file a registration statement with the SEC covering the resale of the shares
of
common stock to be issued in the offering, including the shares of common
stock
issuable upon exercise of the warrants. This news release is neither
an offer to sell nor a solicitation of an offer to buy any of the securities
discussed herein and is being issued under Rule 135c of the Securities Act
of
1933.
About
BioSante Pharmaceuticals, Inc.
BioSante
is developing a pipeline of hormone therapy products to treat both men and
women. These hormone therapy products are gel formulations for
transdermal administration that deliver bio-identical estradiol and
testosterone. BioSante's lead products include Elestrin™ (estradiol
gel), developed through U.S. Food and Drug Administration (FDA) approval
by
BioSante, indicated for the treatment of moderate-to-severe vasomotor symptoms
associated with menopause, and LibiGel® (transdermal
testosterone gel) in Phase III development for the treatment of female sexual
dysfunction (FSD). The current market in the U.S. for estrogen and
testosterone products is approximately $2.5 billion. The company also
is developing its calcium phosphate nanotechnology (CaP) for novel vaccines,
including hepatitis B, avian flu and biodefense vaccines for toxins such
as
anthrax, as well as a system for delivering drugs via alternative routes
of
administration. Additional information is available online
at: www.biosantepharma.com.
This
news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The statements
regarding BioSante contained in this news release that are not
historical in nature, particularly those that utilize terminology such as
“may,”
“will,” “should,” “likely,” “expects,” “anticipates,” “estimates,” “believes,”
“plans,” “hopes,” or comparable terminology, are forward-looking
statements. Forward-looking statements are based on current
expectations and assumptions, and entail various risks and uncertainties
that
could cause actual results to differ materially from those expressed in such
forward-looking statements. Important factors known to BioSante that
cause actual results to differ materially from those expressed in such
forward-looking statements are the difficulty of developing pharmaceutical
products, the success of clinical testing, obtaining regulatory and other
approvals and achieving market acceptance, and other factors identified and
discussed from time to time in BioSante's filings with the Securities and
Exchange Commission, including those factors discussed in BioSante's most
recent
Forms 10-K and 10-Q, which discussion also is incorporated herein by
reference. All forward-looking statements speak only as of the date
of this news release. BioSante undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.
For
more
information, please contact:
Phillip
B. Donenberg, CFO
847-478-0500
ext 101
donenber@biosantepharma.com
