Spectrum Pharmaceuticals to raise funds from institutional investors for general corporate purposes

Spectrum Pharmaceuticals, Inc. (NasdaqGM:SPPI), a commercial-stage biotechnology company with a focus in oncology, today announced that it has received commitments from institutional investors to purchase $50 million of securities in a registered direct offering. Under the terms of a Securities Purchase Agreement, Spectrum will sell an aggregate of approximately 6,622,500 shares of its common stock and warrants to purchase up to 2,649,000 additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase approximately one-half of a share of common stock, will be sold for a purchase price of $7.55.

The warrants to purchase additional shares will be exercisable at an exercise price of $7.55 per share beginning six months after issuance and will expire 90 days from the date they are first exercisable. All of the securities were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes. The offering is expected to be consummated no later than September 21, 2009, subject to customary closing conditions.