Nile Therapeutics to sell 3.6 million shares of common stock

Nile Therapeutics, Inc. (OTCQB: NLTX), a biopharmaceutical company that develops novel therapeutics for heart failure patients, today announced that it has entered into a definitive agreement to sell 3.6 million shares of its common stock at a price per share of $0.40 for aggregate gross proceeds of $1.44 million.  In addition, each investor will also receive three-fourths of a warrant to purchase an additional share of common stock at an initial exercise price of $0.50 per share. In total, the company will issue warrants to purchase 2.7 million shares of common stock. 

The company plans to use the net proceeds from the offering for general corporate purposes, including funding our activities related to planning and designing our next Phase 2 clinical trial of cenderitide.  The offering is expected to close on April 4, 2012, subject to the satisfaction of customary closing conditions.

SOURCE Nile Therapeutics, Inc.