OXiGENE signs definitive agreement to sell Common Stock

OXiGENE, Inc. (Nasdaq:OXGN) (Stockholm:OXGN), a clinical-stage biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases, today announced that it has entered into a definitive agreement with certain institutional investors to sell 6,578,945 shares of its Common Stock and separate series of warrants to purchase Common Stock in a private placement.

Gross proceeds of the financing will be approximately $7.5 million, before deducting placement agent fees and estimated offering expenses, and assuming no exercise of the warrants. The financing is expected to close on or about March 12, 2010, subject to satisfaction of customary closing conditions.

The net proceeds from the offering will be used to fund development of OXiGENE's high priority oncology programs, including its ongoing trials of ZYBRESTAT in non-small cell lung cancer (NSCLC) and of OXi4503 trials in solid tumors, as well as to continue its programs in anaplastic thyroid cancer (ATC) and in ophthalmology.

ROTH Capital Partners, LLC acted as the sole placement agent for the offering.