Published on April 14, 2008
FOR
IMMEDIATE RELEASE
NOVELOS
THERAPEUTICS CLOSES $5.7 MILLION PRIVATE PLACEMENT
NEWTON,
Mass., April 11, 2008 –
Novelos
Therapeutics, Inc. (OTCBB: NVLT),
a
biopharmaceutical company focused on the development of therapeutics to treat
cancer and hepatitis, today announced that it closed its previously announced
private placement with existing institutional investors resulting in
approximately $5.7 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 sold 113.5 shares of Series D convertible preferred stock, having
a stated value equal to $50,000 per share, a cumulative annual dividend of
9% of
stated value and a conversion price of $0.65 per share of common stock. The
investors also received warrants, callable in certain circumstances, expiring
in
five years to purchase an aggregate of 4,365,381 shares of common stock at
an
exercise price of $0.65 per share.
The
institutional investors are Xmark Opportunity Funds, OrbiMed Advisors, Knoll
Capital and Hunt BioVentures. Rodman & Renshaw, LLC, a subsidiary of Rodman
and Renshaw Capital Group, Inc. (NASDAQ: RODM) served as an exclusive placement
agent, and received a cash fee at the closing of the transaction. The preferred
stock and warrants were issued in a private placement transaction under
Regulation D of the Securities of Act of 1933 and have
not
been registered under the Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States absent
registration with the Securities and Exchange Commission (the “SEC”) or an
applicable exemption from the registration requirements. Novelos has
agreed to file a registration statement with the SEC covering resales of the
common stock issuable upon conversion of the newly issued shares of preferred
stock and upon exercise of the warrants.
“We
are
very pleased to have these excellent institutional investors continue to support
Novelos, providing funds for our current development programs into late-2008,”
said Harry Palmin, President and CEO of Novelos. “Additional monies may come
later this year from our ex-US partnering initiative or warrant exercises.
Fundamentally, we expect data from the Phase 2 breast cancer trial this quarter
and detailed results of the Phase 2 ovarian cancer trial will be presented
at
ASCO (May 30 – June 2). We also expect conclusion of our pivotal Phase 3
lung cancer trial in mid-2009.”
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. 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
|
INVESTOR RELATIONS
|
|
Harry
S. Palmin, President and CEO
|
Stephen
Lichaw
|
|
Ph:
617-244-1616 x11
|
Ph:
201-240-3200
|
|
Email:
hpalmin@novelos.com
|
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.
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