Full Press Release Details
Genetics Corporation
GENETICS ANNOUNCES $8.7 MILLION PRIVATE PLACEMENT
8, 2007 - Targeted Genetics Corporation (Nasdaq: TGEN) today announced that
has obtained agreement from select institutional investors to purchase in a
private placement 2.18 million shares of Targeted Genetics' common stock,
together with warrants to purchase up to an aggregate of 763,000 shares of
Targeted Genetics common stock, subject to adjustment pursuant to the terms
the warrants, at a price of $4.00 per share of common stock. The purchase price
per share of common stock represents a discount of 16% to the Company's 45-day
trailing average closing price on the NASDAQ Capital Market. The warrants to
issued in the transaction will be exercisable at $5.41 per share, the closing
price of Targeted Genetics common stock on the NASDAQ Capital Market on January
5, 2007, the trading day immediately prior to Targeted Genetics entering into
the binding agreement to sell the securities. The financing is expected to
on January 11, 2007, subject to satisfaction of customary closing
closing proceeds as expected, the gross proceeds from this financing would
$8.72 million. Targeted Genetics estimates that net proceeds from the financing
will be approximately $8.1 million after deducting the estimated costs
associated with the transaction. Targeted Genetics plans to use the net proceeds
of this financing for working capital and other general corporate purposes.
investor in the financing is Special Situations Fund, through their Special
Situations Life Sciences Fund and their Special Situations Fund III. Other
investors include Greenway Capital. Pacific Growth Equities, LLC acted as the
exclusive placement agent for the financing.
pleased to announce this financing with a good group of investors that we
believe are interested in the potential value of our clinical programs. Combined
with the funding expected from partners and license agreements, we believe
we are in a solid financial position as we begin 2007," said H. Stewart Parker,
President and CEO of Targeted Genetics. "These funds will be important for
continuation of our clinical and preclinical programs, as well as exploitation
of our recently issued patents related to expressed RNAi."
Genetics Corporation is a biotechnology company committed to the development
innovative targeted molecular therapies for the prevention and treatment of
acquired and inherited diseases with significant unmet medical need. Targeted
Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows it
to deliver genes coding proteins to increase gene function, as well as RNAi
decrease or silence gene function. Targeted Genetics' product development
efforts target inflammatory arthritis, AIDS prophylaxis, congestive heart
failure and Huntington's disease. To learn more about Targeted Genetics, visit
the Targeted Genetics' website at www.targetedgenetics.com.
Harbor Statement under the Private Securities Litigation Reform Act of
release contains forward-looking statements regarding the amount of proceeds
expected to be received from the offering, the expected timing of the closing
the financing, Targeted Genetics' expected use of these proceeds and other
statements about Targeted Genetics' plans, objectives, intentions and
expectations. These statements, involve current expectations, forecasts of
future events and other statements that are not historical facts. Inaccurate
assumptions and known and unknown risks and uncertainties can affect the
accuracy of forward-looking statements. Factors that could affect our actual
results include, but are not limited to, the risk that the financing is not
consummated, the possibility that Targeted Genetics decides to use the proceeds
from the financing for purposes other than those described above, as well as
other risk factors described in "Part I, Item 1A. Risk Factors" in our most
recent annual report on Form 10-K or "Part II, Item 1A. Risk Factors" in our
most recent quarterly report on Form 10-Q filed with the Securities and Exchange
Commission. You should not rely unduly on these forward-looking statements,
which apply only as of the date of this release. We undertake no duty to
publicly announce or report revisions to these statements as new information
becomes available that may change our expectations.