OCEANPORT, N.J., March 25 /PRNewswire-FirstCall/ -- Life Medical Sciences, Inc. (BULLETIN BOARD: CHAI) , today announced that it has received approximately $2.8 million through the exercise of warrants to purchase the Company's Common Shares. The warrants were otherwise scheduled to expire on March 22, 2004. "The exercise of 100% of the outstanding investor warrants represents a strong endorsement of the Company's business strategy by these investors," stated Robert P. Hickey, President & CEO of Life Medical Sciences. "The proceeds should fund operations through the remainder of 2004 including the ramp up of expenditures in support of several product development programs." The Company is conducting a multi-center Phase III clinical trial for REPEL-CV(TM), its anti-adhesion product designed for use in cardiac surgery. REPEL-CV may become the first anti-adhesion product, designed for use in cardiac surgery, to obtain regulatory approval in both the US and Europe, a market with projected annual revenue potential of $250 million.
The warrants, which were exercisable at $0.24 per share, were issued as part of a $1.2 million private equity placement to private and institutional investors in Europe that closed in March 2002. The warrant exercise (including warrants issued to Clubb BioCapital Ltd. of London, the Company's placement agent) resulted in the issuance of approximately 11.8 million shares of Common Stock. All of these shares are restricted and are subject to registration rights granted to the investors in the private placement.
Life Medical Sciences, Inc. is a biomaterials company engaged in the development and commercialization of innovative and cost-effective medical devices.
Certain statements in this Press Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Reference is made to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2003 for a description of some of these risks and uncertainties.
Life Medical Sciences, Inc.
CONTACT: Robert P. Hickey of Life Medical Sciences, Inc.,+1-732-728-1769, firstname.lastname@example.org