Full Press Release Details
Pharmaceuticals Raises $11.9 Million in Private Placement
August 30, 9:30 am ET
Aug. 30, 2005 (PRIMEZONE) -- Manhattan Pharmaceuticals, Inc. (OTC
completed a private placement of common stock and warrants to institutional
accredited investors resulting in gross proceeds of approximately $11.9 million
before payment of expenses and placement fees. The financing was completed
Paramount BioCapital, Inc. of New York (``Paramount''). Manhattan generated
proceeds of approximately $11.04 million.
terms of the financing, Manhattan sold approximately 10,763,926 shares at
per share and granted the investors warrants to purchase approximately 2,152,758
shares of common stock at an exercise price equal to $1.44 per share. The
warrants are exercisable for a five-year period commencing on August 26,
Abel, Manhattan's president and chief executive officer, commented: ``We
pleased to have completed this financing and we believe that it evidences
investment community's confidence in the clinical prospects for our product
portfolio and its commercial potential. The additional funds will allow us
continue advancing the development of our products and pipeline.''
proceeds from the private placement will be used for working capital, general
corporate purposes and to fund further development of the company's three
compounds, oleoyl-estrone, also known as ``OE'', for the treatment of obesity,
topical PTH (1-34) for psoriasis, and lingual spray propofol for pre-procedural
securities were offered to accredited investors in reliance on an exemption
the registration requirements of the Securities Act of 1933 (the ``Securities
Act''). The offering has not been registered under the Securities Act or
state securities or ``blue sky'' laws and the shares may not be offered or
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
Manhattan agreed, subject to certain terms and conditions, to file a
registration statement under the Securities Act covering the resale of the
shares purchased and shares issuable upon exercise of the warrants, as well
placement warrants issued to Paramount in connection with the transaction.
press release does not and shall not constitute an offer to sell or the
solicitation of an offer to buy shares or warrants.
Manhattan Pharmaceuticals, Inc.
Pharmaceuticals, Inc. (http://www.manhattanpharma.com),
development stage pharmaceutical company, acquires and develops proprietary
prescription drugs for large, under-served patient populations. In view of
worldwide obesity epidemic, the company is developing OE, an orally administered
novel therapeutic for weight loss. To meet the needs of other major,
under-served medical markets while lowering development risks, Manhattan
Pharmaceuticals is also developing PTH (1-34), a peptide believed to be a
regulator of epidermal cell growth, for psoriasis and Propofol Lingual Spray,
convenient, proprietary lingual spray formulation of propofol, the world's
best-selling general anesthetic, as a sedative-hypnotic for use during
diagnostic and therapeutic procedures.
release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are valid only
today, and we disclaim any obligation to update this information. These
statements are subject to known and unknown risks and uncertainties that
cause actual future experience and results to differ materially from the
statements made. These statements are based on our current beliefs and
expectations as to such future outcomes. Drug discovery and development involve
a high degree of risk. Factors that might cause such a material difference
include, among others, uncertainties related to the ability to attract and
retain partners for our technologies, the identification of lead compounds,
successful preclinical development thereof, the completion of clinical trials,
the FDA review process and other governmental regulation, our pharmaceutical
collaborator's ability to successfully develop and commercialize drug
candidates, competition from other pharmaceutical companies, product pricing
third party reimbursement, and other factors described in our filings with
Securities and Exchange Commission.
Pharmaceuticals, Inc.
Manhattan Pharmaceuticals, Inc.