ANN ARBOR, Mich., Jan. 28, 2011 /PRNewswire/ -- Adeona
Pharmaceuticals, Inc. (Amex: AEN), a developer of innovative
medicines for serious central nervous system diseases, announced
today that it has executed an agreement for the sale of
approximately 2.85 million shares of its common stock at
$1.40 per share to two new
institutional investors in a registered direct offering for
$4 million in gross proceeds. The
investors will also receive warrants to purchase approximately 1.42
million shares of common stock at an exercise price of $2.00 per share. The warrants are exercisable
upon issuance for a period of 13 months from the closing date.
If exercised for cash, the warrants are expected to generate
up to an additional $2.85 million in
proceeds to Adeona.
"This financing will allow us to continue developing our
zinc-based therapy currently in a clinical study and, if clinical
results are positive, will allow us to further our
commercialization efforts as a prescription medical food for
Alzheimer's disease," stated James S.
Kuo, M.D., M.B.A., Adeona's Chairman and CEO.
The offering is expected to close on or before February 2, 2011, subject to customary closing
conditions, including approval by the NYSE AMEX. The net proceeds
of approximately $3.7 million will be
used for general corporate purposes, including conducting
operations and advancing our clinical development programs.
Chardan Capital Markets acted as the sole placement agent for
this transaction.
The shares and warrants are being offered in a registered direct
offering under the Company's effective shelf registration statement
previously filed on Form S-3 with the Securities and Exchange
Commission (SEC). This offering will be made by means of a
prospectus supplement and the accompanying base prospectus, copies
of which may be obtained, when available, from www.sec.gov.
This press release does not and shall not constitute an offer to
sell or the solicitation of an offer to buy, nor will there be any
sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About Adeona Pharmaceuticals, Inc.
Adeona is a pharmaceutical company developing innovative
medicines for the treatment of serious central nervous system
diseases. The Company's strategy is to license product candidates
that have demonstrated a certain level of clinical efficacy and
develop them to a stage that results in a significant commercial
collaboration. Currently, Adeona is developing the following
product candidates: a prescription medical food for Alzheimer's
disease, and drugs for multiple sclerosis, fibromyalgia, rheumatoid
arthritis and age-related macular degeneration. For more
information, please visit Adeona's website at
www.adeonapharma.com.
This release includes forward-looking statements on Adeona's
current expectations and projections about future events. In some
cases forward-looking statements can be identified by terminology
such as "may," "should," "potential," "continue," "expects,"
"anticipates," "intends," "plans," "believes," "estimates," and
similar expressions. These statements are based upon current
beliefs, expectations and assumptions and are subject to a number
of risks and uncertainties, many of which are difficult to predict
and include statements regarding the timing and results of our
clinical study and our ability to successfully develop products
with superior benefits. The forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those set forth or implied by any
forward-looking statements. Important factors that could cause
actual results to differ materially from those reflected in
Adeona's forward-looking statements include, among others,
the availability of financial and other resources and the
allocation of resources among different potential uses, a
failure of our clinical trials to be completed on time or to
achieve desired results, a failure of our clinical reference
laboratory to continue to grow and achieve revenue or a failure by
us or our strategic partners to successfully commercialize products
and other factors described in Adeona's report on Form 10-K for the
year ended December 31,
2009 and any other filings with the SEC. The
information in this release is provided only as of the date of this
release, and Adeona undertakes no obligation to update any
forward-looking statements contained in this release on account of
new information, future events, or otherwise, except as required by
law.
SOURCE Adeona Pharmaceuticals, Inc.