OCEANPORT, N.J., March 31 /PRNewswire-FirstCall/ -- Life Medical Sciences, Inc. (BULLETIN BOARD: CHAI) , today announced that it has received approximately $800,000 through the exercise of warrants to purchase the Company's Common Shares. The warrants were otherwise scheduled to expire on March 26, 2005. "The exercise of all outstanding investor warrants represents a further commitment to the Company's business strategy by these investors " stated Robert P. Hickey, President & CEO of Life Medical Sciences, "The proceeds will primarily be used to support our ongoing product development programs in post-operative adhesion prevention and cardiac drug delivery."
The Company is conducting a multi-center pivotal 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 $0.12 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 2003. The warrant exercise resulted in the issuance of approximately 6.6 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 anti-adhesion and drug delivery products.
Statements in this Press Release that are not statements of historical fact, including statements regarding indications of the potential outcome of the REPEL-CV clinical trial, the timing or ability to achieve regulatory approval in respect of REPEL-CV or the potential market size for REPEL-CV, 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. Such risks and uncertainties include but are not limited to (i) potential adverse developments regarding the progress, timing and results of the clinical trial and the Company's efforts to obtain required FDA approval and that failure can occur at any stage of testing and (ii) potential inability to secure funding as and when needed to support the trial and the Company's other activities. Reference is made to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2004 for a description of these, as well as other, risks and uncertainties.
Life Medical Sciences, Inc.