Apr 17 2010
EntreMed, Inc. (Nasdaq: ENMD) today announced that it completed a registered direct offering of 5,791,505 shares of its common stock, at a purchase price of $0.518 per share, to an existing accredited institutional investor. The sale resulted in gross proceeds to the Company of approximately $3 million. The terms of the purchase were set forth in a stock purchase agreement between the parties dated April 16, 2010. The per share purchase price reflects a 20% discount to the volume weighted average price on April 15, 2010.
EntreMed plans to use the net proceeds of the offering, which are expected to be approximately $2.8 million after deducting the placement agent's fee and estimated offering expenses payable by EntreMed, to further clinical development of its Aurora A/angiogenic kinase inhibitor, ENMD-2076, and for other general corporate purposes. EntreMed recently announced the initiation of a Phase 2 study in ovarian cancer patients after encouraging Phase 1 results.
Michael M. Tarnow, EntreMed's Executive Chairman of the Board, commented on the recent financing, "We are pleased to have completed another round of financing this year which will provide additional support to the clinical development of ENMD-2076. The proceeds of this financing will extend our cash runway and provide us with the necessary timeframe for Phase 2 data to mature."