Published on April 13, 2007
Exhibit
99.1
FOR
IMMEDIATE RELEASE
NOVELOS
THERAPEUTICS ANNOUNCES $15 MILLION PRIVATE PLACEMENT
NEWTON,
Mass., April 13, 2007
-
Novelos
Therapeutics, Inc. (OTCBB: NVLT),
a
biopharmaceutical company focused on the development of therapeutics to treat
cancer and hepatitis, today announced that it has entered into a definitive
agreement with institutional investors to raise $15 million in gross proceeds
through the sale of shares of a new series of its convertible preferred stock
and warrants to purchase its common stock. Novelos has agreed to sell 1,500
shares of Series B convertible preferred stock, having a stated value equal
to
$10,000 per share, a cumulative annual dividend of 9% of stated value and a
conversion price of $1.00 per share of common stock. The investors will also
receive warrants, callable in certain circumstances, expiring in five years
to
purchase an aggregate of 7,500,000 shares of common stock at an exercise price
of $1.25 per share. The transaction is expected to close in seven to ten days,
subject to the satisfaction of certain closing conditions.
The
investors include Xmark Opportunity Funds, OrbiMed Advisors, and other selected
institutional investors. Rodman & Renshaw, LLC is serving as the placement
agent, and Emerging Growth Equities, Ltd is serving as the sub-placement agent
for the transaction, and will receive a placement agent fee consisting of cash
and warrants to purchase Novelos common stock at the closing of the transaction.
The preferred stock and warrants will be issued in a private placement
transaction under Regulation D of the Securities of Act of 1933. Novelos is
required to file a registration statement covering the common stock underlying
the preferred stock purchased by the investors and the common stock underlying
the warrants within 30 days of the closing and to use its best efforts to obtain
effectiveness within 90 days of the closing.
“We
are
very pleased to have these excellent institutional investors participate in
the
financing, which will provide funds for Novelos’ current development program
through mid-2008,” said Harry Palmin, President and CEO of Novelos.
“Furthermore, if all the warrants are exercised for cash, Novelos would receive
about $10 million of additional proceeds. Fundamentally, we continue to
anticipate that our pivotal Phase 3 lung cancer trial will be fully enrolled
by
the end of the first quarter of 2008. Meanwhile, we expect earlier stage
clinical trial results later this year.”
About
Novelos Therapeutics, Inc.
Novelos
Therapeutics, Inc. is a biopharmaceutical company commercializing oxidized
glutathione-based compounds for the treatment of cancer and hepatitis. NOV-002,
the lead compound currently in Phase 3 development for lung cancer under a
SPA
and Fast Track, acts together with chemotherapy as a chemoprotectant and an
immunomodulator. NOV-002 is also in Phase 2 development for
chemotherapy-resistant ovarian cancer and early-stage breast cancer, and is
in
addition being developed for acute radiation injury. NOV-205 acts as a
hepatoprotective agent with immunomodulating and anti-inflammatory properties.
NOV-205 is in Phase 1b development for chronic hepatitis C non-responders.
Both
compounds have completed clinical trials in humans and have been approved for
use in the Russian Federation where they were originally developed. For
additional information about Novelos please visit www.novelos.com
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|
COMPANY
Harry S. Palmin, President and CEO
Ph: 617-244-1616 x11
Email: hpalmin@novelos.com
|
INVESTOR RELATIONS
Stephen Lichaw
Ph: 201-240-3200
Email: slichaw@novelos.com
|
Novelos
Therapeutics, Inc.
One
Gateway Center, Suite 504
Newton,
MA 02458
This
news release contains forward-looking statements. Such statements are valid
only
as of today, and we disclaim any obligation to update this information. These
statements are subject to known and unknown risks and uncertainties that may
cause actual future experience and results to differ materially from the
statements made. These statements are based on our current beliefs and
expectations as to such future outcomes. Drug discovery and development involve
a high degree of risk. Factors that might cause such a material difference
include, among others, uncertainties related to the ability to attract and
retain partners for our technologies, the identification of lead compounds,
the
successful preclinical development thereof, the completion of clinical trials,
the FDA review process and other government regulation, our pharmaceutical
collaborators’ ability to successfully develop and commercialize drug
candidates, competition from other pharmaceutical companies, product pricing
and
third-party reimbursement.