SAN FRANCISCO, July 8 /PRNewswire-FirstCall/ -- Nile Therapeutics, Inc. , a company focused on the development of novel therapeutics for heart failure patients, today announced that it has received commitments from investors to purchase in a private placement securities of the Company for aggregate gross proceeds of approximately $3.4 million. Riverbank Capital Inc., a FINRA member broker dealer, acted as the exclusive placement agent for the transaction.
The net proceeds of the financing will be used to support the advancement of Nile's lead compound, CD-NP, through its 30-patient single-blind, placebo-controlled Phase 2 study, which is currently open to enrollment. This Phase 2 study is designed to provide additional information on the safety and tolerability of CD-NP when infused for up to 72 hours in patients with acute heart failure and mild to moderate renal insufficiency. Additional exploratory endpoints will include assessments of CD-NP's ability to relieve symptoms of acute heart failure and its effects on biomarkers of heart failure and renal function.
"We are pleased to have the continued support of the investment community to ensure the advancement of our promising technology in the effort to develop a novel treatment for heart failure patients," said Joshua Kazam, Chief Executive Officer. "We believe these funds will provide us with sufficient capital to complete our impending Phase 2 clinical study of CD-NP and we look forward to generating meaningful clinical data."
Under the terms of a Securities Purchase Agreement, Nile will sell an aggregate of approximately 2.7 million shares of its common stock and warrants to purchase up approximately 2.7 million additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase one share of common stock, will be sold for a purchase price of $1.25. The warrants will be issued in three tranches with 25% having an exercise price equal to $1.25 per share, 25% having an exercise price equal to $1.71 per share, and 50% having an exercise price equal to $2.28 per share. The warrants are redeemable by the Company, at a redemption price of $0.001 per warrant share, upon 30 days notice, if at any time, the volume weighted average price of the common stock for any 20 consecutive business days is equal to or greater than 200% of the then applicable exercise price of the warrants.
The securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements. Nile has agreed to file a registration statement covering the resale of the shares issued in the private placement, including the shares issuable upon exercise of the warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Nile Therapeutics
Nile Therapeutics, Inc. is a clinical-stage biopharmaceutical company that develops innovative products for the treatment of cardiovascular disease and other areas of unmet medical needs. Nile is initially focusing its efforts on developing its lead compound, CD-NP, a novel rationally designed chimeric peptide in clinical studies for the treatment of heart failure, and CU-NP, a novel rationally designed natriuretic peptide. More information on Nile can be found at http://www.nilethera.com.
Safe Harbor Paragraph for Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding the timing, progress and anticipated results of the clinical development, regulatory processes, clinical trial timelines, anticipated benefits of CD-NP, Nile's strategy, future operations, outlook, milestones, the timing and success of Nile's product development, future financial position, future financial results, plans and objectives of management are forward-looking statements. Nile may not actually achieve these plans, intentions or expectations and Nile cautions investors not to place undue reliance on Nile's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Nile makes. Various important factors that could cause actual results or events to differ materially from the forward-looking statements that Nile makes include Nile's need to raise additional capital to fund its product development programs to completion, Nile's reliance on third-party researchers to develop its product candidates, and its lack of experience in developing and commercializing pharmaceutical products. Additional risks are described in greater detail in the reports Nile files with Securities and Exchange Commission, including those described under the caption "Risk Factors" in Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on March 12, 2009. Nile is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
CONTACT: Daron Evans, Chief Financial Officer of Nile Therapeutics, Inc.,
+1-415-875-7880, info@nilethera.com
Web site: http://www.nilethera.com/
