Threshold Pharmaceuticals, Inc. Announces $18 Million Private Equity Financing

REDWOOD CITY, Calif., July 10, 2008 (PRIME NEWSWIRE) -- Threshold Pharmaceuticals, Inc. (Nasdaq:THLD) today announced that it has entered into a purchase agreement with a select group of investors that includes Sutter Hill Ventures, HealthCare Ventures, LLC, Alta Partners and Three Arch Partners in connection with a proposed sale of the Company's common stock, par value $.001 per share, for a per share purchase price equal to $0.34 per share. Investors will receive a warrant to purchase 0.4 shares of common stock for each share of common stock purchased. The warrants will have a five-year term and an exercise price equal to $0.39 per share. The Company anticipates raising gross proceeds of $18.3 million and issuing 53,823,530 shares of common stock, and warrants to purchase 21,529,413 shares of common stock. Four members of the Company's management team will purchase 1,470,588 of the shares of common stock offered. Net offering proceeds are expected to be approximately $17 million. Lazard Freres & Co. LLC and MTS Securities, LLC, an affiliate of MTS Health Partners, served as the placement agents in the offering.