ADVENTRX Pharmaceuticals Announces Closing of Financing
09 Oktober 2009 - 7:17PM
PR Newswire (US)
SAN DIEGO, Oct. 9 /PRNewswire-FirstCall/ -- ADVENTRX
Pharmaceuticals, Inc. (NYSE Amex: ANX) announced today that it has
completed the previously announced sale of shares of its Series D
convertible preferred stock pursuant to a registered direct
offering to institutional investors, representing gross proceeds to
ADVENTRX of approximately $11.3 million. ADVENTRX plans to use the
net proceeds from the offering to fund its operations during the
FDA review period of an ANX-530 NDA and to continue development of
ANX-514, and for general corporate purposes. The preferred stock is
convertible into shares of ADVENTRX's common stock at the option of
the investors at a conversion price of $0.18805 per share and will
accrue a 4.25660% cumulative dividend until October 9, 2020. If the
convertible preferred stock is converted at any time prior to
October 9, 2020, ADVENTRX will pay the holder an amount equal to
the total dividend that would accrue on the convertible preferred
stock from the conversion date through October 9, 2020, or $468.23
per $1,000 stated value of preferred stock converted, less any
dividend payments made with respect to the converted preferred
stock. Approximately $5.3 million of the gross proceeds will be
placed in an escrow account, which amounts will be released to make
the dividend and other payments described above. The investors also
will receive warrants to purchase an aggregate of 19,800,000 shares
of ADVENTRX's common stock. The warrants will have an exercise
price of $0.1468 per share and are exercisable at any time after
the closing of the transaction and before the fifth anniversary of
the initial exercise date. The convertible preferred stock and
warrants were sold by ADVENTRX pursuant to an effective
registration statement on Form S-1 filed with the Securities and
Exchange Commission ("SEC"). A prospectus relating to the offering
was filed with the SEC on October 6, 2009. Rodman & Renshaw,
LLC, a wholly owned subsidiary of Rodman & Renshaw Capital
Group, Inc. (NasdaqGM: RODM), acted as the exclusive placement
agent for the transaction. 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 the securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The securities may only be offered by means
of a prospectus. Copies of the prospectus can be obtained directly
from Rodman & Renshaw, LLC at 1251 Avenue of the Americas, 20th
Floor, New York, NY 10020, or from the SEC's website at
http://www.sec.gov/. About ADVENTRX Pharmaceuticals ADVENTRX
Pharmaceuticals is a specialty pharmaceutical company whose product
candidates are designed to improve the safety of existing cancer
treatments. More information can be found on the Company's web site
at http://www.adventrx.com/. Forward Looking Statement ADVENTRX
cautions you that statements included in this press release that
are not a description of historical facts are forward-looking
statements that involve risks and assumptions that, if they
materialize or do not prove to be accurate, could cause ADVENTRX's
results to differ materially from historical results or those
expressed or implied by such forward-looking statements. These
risks and uncertainties include, but are not limited to: the risk
that ADVENTRX fails to submit an ANX-530 NDA, whether by December
31, 2009 or at all; the risk the FDA will determine that ANX-530
and Navelbine® are not bioequivalent or for the FDA to require
additional preclinical work and/or clinical activities to support
the submission or approval of an ANX-530 NDA; difficulties or
delays in manufacturing, obtaining regulatory approval for and
marketing ANX-530, including validating commercial manufacturers
and suppliers; the risk that ADVENTRX's common stock will be
delisted by the NYSE Amex, including as a result of failing to
maintain sufficient stockholders' equity or a sufficient stock
price; the risk that the provisions of Delaware General Corporation
Law will prohibit ADVENTRX from making the cumulative dividend and
other payments due its Series D convertible preferred stock (or to
the holders thereof), which may be a breach of its certificate of
incorporation or other contractual obligations and expose ADVENTRX
to corresponding liability; the risk that ADVENTRX will be unable
to raise sufficient additional capital to commercialize ANX-530 or
to continue the development of ANX-514; the risk that the
performance of third parties on whom ADVENTRX relies to conduct its
studies or evaluate the data may be substandard, or they may fail
to perform as expected; and other risks and uncertainties more
fully described in ADVENTRX's press releases and in the prospectus
relating to this offering that was filed with the Securities and
Exchange Commission on October 6, 2009. ADVENTRX's public filings
with the Securities and Exchange Commission are available at
http://www.sec.gov/. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date when made. ADVENTRX does not intend to update any
forward-looking statement as set forth in this press release to
reflect events or circumstances arising after the date on which it
was made. DATASOURCE: ADVENTRX Pharmaceuticals, Inc. CONTACT:
Company, Brian Culley, Principal Executive Officer of ADVENTRX
Pharmaceuticals, +1-858-552-0866, or Investor Contact, Don Markley,
+1-310-691-7100, of Lippert/Heilshorn & Associates, Inc., for
ADVENTRX Pharmaceuticals Web Site: http://www.adventrx.com/
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