Published on August 26, 2009
FOR IMMEDIATE
RELEASE
NOVELOS
THERAPEUTICS COMPLETES WARRANT TENDER
NEWTON, Mass., August 24, 2009
– Novelos Therapeutics, Inc.
(OTCBB: NVLT), a biopharmaceutical company focused on the development of
therapeutics to treat cancer and hepatitis, today announced that Novelos issued
approximately 2,100,000 shares of its Common Stock to certain holders of
warrants to purchase approximately 6,900,000 shares of Novelos Common
Stock. The warrants, issued in March 2006 in connection with a
private placement of Novelos Common Stock and expiring on March 7, 2011, were
exercisable at a price of $1.82 per share of Common Stock. Novelos
effected the exchange pursuant to an exchange agreement with each warrant holder
who agreed not to transfer or dispose of the shares of Common Stock acquired
until February 18, 2010. Immediately following the exchange, warrants
to purchase an aggregate of approximately 5,400,000 shares of Common Stock at
$1.82 remained outstanding.
“We are
pleased to have completed this warrant exchange,” said Joanne Protano, Chief
Financial Officer of Novelos. “In increasing the number of
outstanding shares of our Common Stock from 47,200,000 to 49,300,000, we, at the
same time, reduced the number of outstanding shares, on a fully diluted basis,
by about 4,800,000 to about 142,200,000. We eliminated a portion of
the market overhang and increased the number of authorized shares available for
use in funding the remainder of our pivotal 900-patient Phase 3 trial of NOV-002
for treatment of non-small cell lung cancer. We expect the trial to
conclude in early 2010.”
The
Common Stock issued to warrant holders was not registered under the Securities
Act of 1933, as amended, or under any state securities law.
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 SPA and Fast Track, acts together with
chemotherapy as a chemopotentiator and a chemoprotectant. NOV-002 is
also in Phase 2 development for early-stage breast cancer and
chemotherapy-resistant ovarian cancer. Novelos has a partnership with
Mundipharma to develop and commercialize NOV-002 in Europe and
Japan. Novelos’ second compound, 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 been partnered with Lee’s Pharm
in China. 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
|
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Ph:
617-244-1616 x11
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Ph:
201-240-3200
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Email:
hpalmin@novelos.com
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Email:
slichaw@novelos.com
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Novelos
Therapeutics, Inc.
One
Gateway Center, Suite 504
Newton,
MA 02458
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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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