Full Press Release Details
Completes $5 Million Private Placement
to Use Proceeds for Product Development, Marketing and Working
York, N.Y. - Nephros, Inc. (AMEX:NEP) today
announced that the Company has entered into subscription agreements with several
investors for the sale of an aggregate of $5 million principal amount of 6%
Secured Convertible Notes due 2012, for the face value thereof. Principal and
accrued interest on these Notes will be convertible at any time at each holder's
option into shares of Nephros common stock at an initial conversion price of
$2.10. Further details regarding this financing transaction can be found in
Current Report on Form 8-K that Nephros is filing with the Securities and
Exchange Commission.
is pleased to be consummating this transaction, which will generate $5 million
of gross proceeds. In keeping with our mission, the funds will support product
development and marketing, and provide working capital as we continue to pursue
regulatory approvals, bring our ESRD therapy products to market, and embark
commercializing our water filtration technology," stated Norman Barta, Nephros's
Inc., headquartered in New York, is a medical device company developing and
marketing products designed to improve the quality of life for the End-Stage
Renal Disease (ESRD) patient, while addressing the critical financial and
clinical needs of the care provider. Nephros also markets filtration products
complimentary to its core ESRD therapy business. ESRD is a disease state
characterized by the irreversible loss of kidney function.
believes that its products are designed to remove a range of harmful substances
more effectively, and more cost-effectively, than existing ESRD treatment
methods; particularly with respect to substances known collectively as "middle
molecules," due to their molecular weight, that have been found to contribute
such conditions as dialysis related amyloidosis, carpal tunnel syndrome,
degenerative bone disease and ultimately, to mortality in the ESRD
company's dual stage filter architecture, Nephros has developed a new
proprietary water filtration device that is designed to remove a broad range
bacteria, viral agents and toxic substances, including salmonella, hepatitis,
HIV, Ebola virus, ricin toxin, legionella, fungi and e-coli. Nephros received
its first order for a water filter product from a major New York City hospital
release contains certain "forward-looking statements" within the meaning of
Private Securities Litigation Reform Act of 1995, as amended. Such statements
may include statements regarding the efficacy and intended use of Nephros's
technologies under development, the timelines for bringing such products to
market and the availability of funding sources for continued development of
products and other statements that are not historical facts, including
statements which may be preceded by the words "intends," "may," "will," "plans,"
"expects," "anticipates," "projects," "predicts," "estimates," "aims,"
"believes," "hopes," "potential" or similar words. For such statements, Nephros
claims the protection of the Private Securities Litigation Reform Act of 1995.
statements are not guarantees of future performance, are based on certain
assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond the control of Nephros. Actual results
may differ materially from the expectations contained in the forward-looking
statements. Factors that may cause such differences include the risks that:
products that appeared promising to Nephros in research or clinical trials
not demonstrate anticipated efficacy, safety or cost savings in subsequent
pre-clinical or clinical trials; (ii) Nephros may not obtain appropriate or
necessary governmental approvals to achieve its business plan or effectively
market its products; (iii) Nephros's technology and products may not be accepted
in current or future target markets, which could lead to the failure to achieve
market penetration of Nephros's products; (iv) Nephros may not be able to sell
its ESRD or water filtration products at competitive prices or profitably;
(v) Nephros may not be able to secure or enforce adequate legal protection,
including patent protection, for its products. More detailed information about
Nephros and the risk factors that may affect the realization of forward-looking
statements is set forth in Nephros's filings with the Securities and Exchange
Commission, including Nephros's Annual Report on Form 10-KSB filed with the SEC
for the fiscal year ended December 31, 2005. Investors and security holders
urged to read those documents free of charge on the SEC's web site at
www.sec.gov. Nephros does not undertake to publicly update or revise its
forward-looking statements as a result of new information, future events or