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Tapestry Pharmaceuticals, Inc. Announces Receipt Of Going Concern Qualification In Fiscal Year 2005 Audit Report

Published: Mar 03, 2006

BOULDER, Colo., March 2 /PRNewswire-FirstCall/ -- Tapestry Pharmaceuticals, Inc. today announced, as required by the rules of the Nasdaq Stock Market, that it received a going concern qualification in the audit report that was included in its Annual Report on Form 10-K recently filed with the Securities and Exchange Commission.

In February 2006, Tapestry entered into an agreement that provides for the sale of common stock and warrants to purchase common stock for gross proceeds of $25.5 million. This financing is expected to close in April 2006, subject to stockholder approval and other customary closing conditions. We believe that receipt of the proceeds from such financing would address the issues giving rise to the going concern qualification.

Forward-Looking Statements

Statements in this press release that are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such forward looking statements include statements relating to the prospects for obtaining funding through the recently announced financing and the ability of such financing to address the issues surrounding the going concern qualification. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include risks that such financing will not be approved by stockholders, the Company will not be able to meet the closing conditions imposed by the agreements relating to the financing and therefore be unable to close the transaction and receive the funds, that funds from the financing, once received, will prove insufficient to satisfy the Company's near term capital requirements and that the Company is unable to raise additional funds to satisfy its capital requirements in the future. Additional risks, uncertainties and other factors are identified under the captions "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 28, 2005. The Company disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new or additional information, future events or otherwise.

For further information, please contact Gordon Link, Senior Vice President, Chief Financial Officer, at 303 516 8500.

Tapestry Pharmaceuticals, Inc.

CONTACT: Gordon Link, Senior Vice President, Chief Financial Officer ofTapestry Pharmaceuticals, Inc., +1-303-516-8500, glink@tapestrypharma.com;or Investors, Michael Wachs of CEOcast, Inc., +1-212-732-4900, for TapestryPharmaceuticals, Inc.; or Media, Peter Steinerman, +1-516-374-3031, forTapestry Pharmaceuticals, Inc.

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