SAN FRANCISCO, Dec. 21, 2010 /PRNewswire-FirstCall/ -- Poniard
Pharmaceuticals, Inc. (Nasdaq: PARD), a biopharmaceutical company
focused on innovative oncology therapies, announced today that it
has completed the voluntary prepayment of the $12.35 million aggregate principal, interest and
fees due under its senior secured loan facility with GE Business
Financial Services Inc. and Silicon Valley Bank. The Company
announced on December 16, 2010 that
it had provided notice of such payment to the lenders. The
prepayment satisfies all financial obligations of the Company under
the credit facility. As a result, the credit facility,
including all restrictive and financial covenants set forth in the
loan agreement, has been terminated and all security interests and
other liens held by the lenders in the Company's property and
assets have been released and discharged.
The Company also announced today that it has entered into a
committed equity financing facility under which it may sell up to
$10 million of its registered common
stock to Small Cap Biotech Value, Ltd. over an approximately
18-month period. Poniard is not obligated to utilize any
portion of the equity facility and remains free to enter into other
financing transactions. Poniard will determine, at its sole
discretion, the timing, dollar amount and floor price per share for
any draw under the facility, subject to certain conditions.
When and if Poniard elects to use the facility, the number
and price of shares sold in each draw will be determined by a
contractual formula, whereby the Company will issue shares to Small
Cap Biotech at a pre-negotiated discount to the volume weighted
average price of Poniard's common stock over a preceding period of
trading days. Reedland Capital Partners, an Institutional
Division of Financial West Group, Member FINRA/SIPC, acted as
placement agent for the initial signing of the facility and will
receive a fee for its services at the time of any draw under the
facility.
In connection with the execution of the equity financing
facility, Poniard will issue to Small Cap Biotech 221,218 shares of
registered common stock as a commitment fee. The offer and
sale of shares by Poniard under the equity facility have been
registered pursuant to a shelf registration statement declared
effective with the Securities and Exchange Commission on
June 2, 2009. Poniard intends
to use the net proceeds from any sale of shares under the facility
for working capital and other general corporate purposes.
"Repayment of our secured credit facility removes significant
restrictions on our cash and assets and gives Poniard additional
flexibility for the completion of our review of strategic
alternatives," said Ronald A.
Martell, chief executive officer of Poniard Pharmaceuticals.
"The new equity financing facility provides us with access to
additional working capital to support our operations, while
allowing for control over timing and dilution."
Immediately prior to entering into the new equity financing
facility with Small Cap Biotech, the Company and Commerce Court
Small Cap Value Fund, Ltd., by mutual agreement, terminated the
equity financing facility between the Company and Commerce Court
dated February 23, 2010. The
Company completed a drawdown of 4,229,000 shares of its common
stock under the Commerce Court facility on March 15, 2010, for which the Company received
net proceeds of approximately $6.1
million.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any
sale of securities in any jurisdiction in which an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
About Poniard Pharmaceuticals
Poniard Pharmaceuticals, Inc. is a biopharmaceutical company
focused on the development and commercialization of innovative
oncology products. For additional information please visit
http://www.poniard.com.
Forward Looking Statements
This release contains forward-looking statements describing,
among other things, the Company's projected financial position and
future operations, the adequacy of its cash resources, the
Company's ongoing evaluation of strategic alternatives, the
potential results of such evaluation process, the Company's goal of
optimizing and realizing shareholder value from the picoplatin, the
anticipated benefits to the Company of prepaying its secured credit
facility, the Company's potential future sales of common stock
under the equity financing facility, the availability of capital
from time to time under the equity facility, and the proposed use
of proceeds from any draw downs under such facility. Actual
results and events may differ materially from those indicated in
these forward-looking statements based on a number of factors,
including risks and uncertainties inherent in the Company's
business, including the Company's anticipated future operating
losses, need for future capital and ability to obtain future
funding on favorable terms or at all; the risk that strategic
relationships may not be established on a timely basis, on terms
that are ultimately favorable to the Company, or at all; the
potential safety, efficacy and commercial viability of picoplatin;
the risk that the Company's additional analyses of data from
clinical trials of picoplatin may produce negative or inconclusive
results, or may be inconsistent with previously announced results
or previously conducted trials; the Company's ability to retain key
personnel; competition from third parties; the Company's ability to
preserve and protect its intellectual property rights; the
Company's dependence on third-party manufacturers, suppliers and
other contractors; changes in technology, government regulation and
general market conditions; the receipt and timing of FDA and other
required regulatory approvals, if at all; and the risks and
uncertainties described in the Company's current and periodic
reports filed with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year
ended December 31, 2009 and its
Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. The Company
undertakes no obligation to update any forward-looking statement to
reflect new information, events or circumstances after the date of
this release or to reflect the occurrence of unanticipated
events.
SOURCE Poniard Pharmaceuticals, Inc.