Message #20 From:
NewsBot Date: December 11, 2006 07:30:00 AM
CGXP News Ceragenix Completes $5 Million Financing
DENVER--(BUSINESS WIRE)--Ceragenix Pharmaceuticals, Inc. (OTCBB:CGXP), an emerging
biopharmaceutical company focused on infectious disease and dermatology,
reports it has completed the private sale of an aggregate of $5 million
in secured convertible debentures and warrants to three accredited
investors. Stifel, Nicolaus & Company, Incorporated served as the lead
placement agent.
The debentures accrue interest at the rate of 9% per annum, payable
quarterly in arrears commencing January 1, 2007, and mature on December
5, 2009 (the "Maturity Date"). The debentures are convertible into
shares of common stock, $.0001 par value (the "Common Stock") of the
Company at a conversion price equal to $2.26 per share, subject to
adjustment under certain circumstances. Commencing December 1, 2007, the
Company is required to redeem 1/25 of the principal amount of the
debentures each month until maturity. Subject to the satisfaction of
certain conditions, the Company may pay the amounts due under the
debentures in shares of Common Stock. Investors also received warrants
to acquire 1,162,212 shares of common stock at an exercise price of
$2.37 per share that are also subject to price protection and other
adjustments under certain circumstances. The warrants are exercisable
immediately and have a five year term.
The proceeds of the sale will be used primarily to fund the Company’s
development activities and for general corporate purposes.
“This financing reflects an important
milestone for our company,” said Steven
Porter, chairman and CEO of Ceragenix Pharmaceuticals. “We
look forward to utilizing the proceeds to execute on our business plan.”
About Ceragenix Pharmaceuticals
Ceragenix Pharmaceuticals, Inc. is an emerging biopharmaceutical company
focused on infectious disease and dermatology. Ceragenix is engaged in
the development of novel anti-infective drugs based on its proprietary
class of compounds, Ceragenins™ (or CSAs).
Active against a broad range of gram positive and negative bacteria,
these agents are being developed as anti-infective medical device
coatings (Ceracides™) and as therapeutics for
antibiotic-resistant organisms. Ceragenix further owns exclusive rights
to Barrier Repair Technology for the treatment of dermatological
disorders including atopic dermatitis, neonatal skin disorders and
others. Ceragenix's patented Barrier Repair Technology, invented by Dr.
Peter Elias and licensed from the University of California, is the
platform for the development of two prescription topical creams—EpiCeram®
and NeoCeram®. For additional information on
Ceragenix, please visit www.ceragenix.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. These forward-looking statements are subject
to risks and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including, but not limited to, the following: the ability of
the Company to raise sufficient capital to finance its planned
activities, receiving the necessary marketing clearance approvals from
the United States Food and Drug Administration (the “FDA”),
successful clinical trials of the Company's planned products including;
the ability to enroll the studies in a timely manner, patient compliance
with the study protocol, a sufficient number of patients completing the
studies, and the ability to demonstrate the equivalence of EpiCeram®
to a mid strength steroid , the ability of the Company to commercialize
its planned products, the ability of the Company to consummate a
favorable marketing agreement with a partner to market EpiCeram®,
market acceptance of the Company's planned products, the Company’s
ability to successfully develop its licensed compounds, alone or in
cooperation with others, into commercial products, the ability of the
Company to successfully prosecute and protect its intellectual property,
and the Company's ability to hire, manage and retain qualified
personnel. The aforementioned factors do not represent an all inclusive
list. Actual results, performance or achievements could differ
materially from those contemplated, expressed or implied by the
forward-looking statements contained in this press release. In
particular, important factors that could cause actual results to differ
materially from the Company’s forward-looking
statements include general economic factors, business strategies, the
state of capital markets, regulatory conditions, and other factors not
currently known to the Company, may be significant, now or in the
future, and these factors may affect the Company to a greater extent
than indicated. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements set forth in this press release
and in other documents that the Company files from time to time with the
Securities and Exchange Commission including its Annual Report on Form
10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form
8-KSB to be filed in 2006. Except as required by law, the Company does
not undertake any obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
