SAN DIEGO, June 14 /PRNewswire-FirstCall/ -- Lpath, Inc. , the category leader in therapeutic agents against bioactive lipids, today announced the closing of approximately $2.9 million in the second and final tranche of a private placement of unregistered shares of Class A common stock. Proceeds from the first tranche, which closed April 6, 2007, totaled approximately $13.9 million. The securities issued in this second tranche of the $16.8 million equity financing are identical to the securities issued in the first tranche. Investors in the first tranche financing were required to make the second tranche financing upon satisfaction of certain conditions, including stockholder approval of an increase in Lpath's authorized Class A common stock and an increase in the shares reserved for Lpath's stock option plan.
Proceeds from the funding will be used to take Lpath's lead compound, Sphingomab(TM), into clinic trials and to further develop Lpath's other therapeutic programs.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities have not been registered under the Securities Act of 1933, as amended, or any state securities laws. Unless so registered, the Class A common stock may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable state securities laws. As part of this transaction, Lpath, Inc. has agreed to file a registration statement covering the resale of the shares of Class A common stock sold in this financing as well as those shares issuable upon conversion of the warrants.
About Lpath
Lpath, Inc., headquartered in San Diego, California, is the category leader in lipidomic-based therapeutics, an emerging field of medical science whereby bioactive signaling lipids are targeted for treating important human diseases Lpath's lead product candidate, Sphingomab, is a monoclonal antibody against a validated cancer target, sphingosine-1-phosphate (S1P), and has demonstrated compelling results in preclinical studies against multiple forms of cancers, against AMD, and against heart failure. Sphingomab is potently anti-angiogenic, yet it has other mechanisms of action that may prove advantageous in the clinical setting. As such, Lpath believes Sphingomab may represent the next generation of anti-angiogenesis-based therapeutics.
Lpath's second product candidate, Lpathomab(TM), is a monoclonal antibody against lysophosphatidic acid (LPA), a key bioactive lipid that has been long recognized as a significant promoter of cancer-cell growth and metastasis in a broad range of tumor types.
Lpath's unique ability to generate antibodies against bioactive lipids is based on its patented ImmuneY2(TM) technology. The company intends to apply the ImmuneY2 process to other important lipid-signaling agents, thereby providing a robust pipeline of antibody-based drug candidates.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from stated expectations. For example, there can be no assurance that required clinical trials will be successful, necessary regulatory approvals will be obtained, or the proposed treatments will prove to be safe or effective. Actual results may also differ substantially from those described in or contemplated by this press release due to risks and uncertainties that exist in our operations and business environment, including, without limitation, our limited experience in the development of therapeutic drugs, our dependence upon proprietary technology, our history of operating losses and accumulated deficits, our reliance on research grants, current and future competition, and other risks described from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.
Contact: Gary Atkinson Investor Relations (858) 678-0800 x104 Liolios Group, Inc. gatkinson@lpath.com Scott Liolios or Ron Both http://www.lpath.com (949) 574-3860
Lpath, Inc.CONTACT: Gary Atkinson of Lpath, +1-858-678-0800, ext. 104,gatkinson@lpath.com; or Investor Relations, Scott Liolios or Ron Both, bothof Liolios Group, Inc., +1-949-574-3860, for Lpath, Inc.
Web site: http://www.lioliosgroup.com/
