ADVENTRX Pharmaceuticals Announces Financing
30 June 2009 - 6:31AM
PR Newswire (US)
SAN DIEGO, June 29 /PRNewswire-FirstCall/ -- ADVENTRX
Pharmaceuticals, Inc. (NYSE Amex: ANX) announced today that it has
obtained a commitment to purchase shares of its 5% Series B
convertible preferred stock pursuant to a registered direct
offering to a single institutional investor, representing gross
proceeds of approximately $1.36 million. Twenty-five percent, or
approximately $340,250, of the gross proceeds will be placed in an
escrow account, which amounts will be released to make the dividend
and other payments described below. The preferred stock is
convertible into shares of ADVENTRX's common stock at the option of
the investor at a price of $0.1432 per share and will accrue a 5%
dividend until July 6, 2014. If the convertible preferred stock is
converted at any time prior to July 6, 2014, ADVENTRX will pay the
holder an amount equal to the total dividend that would accrue on
the convertible preferred stock from the conversion date through
July 6, 2014, or $250 per $1,000 principal amount of notes
converted less any dividend payments made with respect to the
converted convertible preferred stock. The closing of the offering
is expected to take place on or before July 3, 2009, subject to the
satisfaction of customary closing conditions. ADVENTRX plans to use
the net proceeds from the offering to fund activities related to
seeking FDA approval to market ANX-530 (vinorelbine emulsion) in
the United States, including manufacturing-related activities, and
for general corporate purposes, including general and
administrative expenses. The shares are being offered by ADVENTRX
pursuant to an effective shelf registration statement filed with
the Securities and Exchange Commission ("SEC"). A prospectus
supplement relating to the offering will be filed with the SEC.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman
& Renshaw Capital Group, Inc., acted as the exclusive placement
agent for the transaction. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The securities may only be offered by means
of a prospectus. Copies of the prospectus supplement and
accompanying base prospectus can be obtained directly from the
ADVENTRX at 6725 Mesa Ridge Road, Suite 100, San Diego, California
92121 or from the SEC's website at http://www.sec.gov/. About
ADVENTRX Pharmaceuticals, Inc. ADVENTRX Pharmaceuticals is a
biopharmaceutical company whose product candidates are designed to
improve the safety of existing cancer treatments. More information
can be found on the Company's web site at http://www.adventrx.com/.
Forward-Looking Statement ADVENTRX cautions you that statements
included in this press release that are not a description of
historical facts are forward-looking statements that involve risks
and assumptions that, if they materialize or do not prove to be
accurate, could cause ADVENTRX's results to differ materially from
historical results or those expressed or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to: the risk that ADVENTRX's common stock will
be delisted by the NYSE Amex, including as a result of failing to
comply with applicable stockholder approval requirements or failing
to maintain sufficient stockholders' equity or a sufficient stock
price; the risk that the provisions of Delaware General Corporation
Law will prohibit ADVENTRX from making the dividend and other
payments due its 5% Series B convertible preferred stock (or to the
holders thereof), which may be a breach of its certificate of
incorporation or other contractual obligations and expose ADVENTRX
to corresponding liability; the risk that ADVENTRX will be unable
to raise sufficient additional capital on a timely basis to submit
an NDA for ANX-530, to fund operations, including pre-launch
activities, during the FDA review period, if an NDA is submitted,
or to conduct launch activities, should an NDA for ANX-530 be
approved; the risk that ADVENTRX will be unable to raise sufficient
additional capital on a timely basis to continue as a going
concern; the risk that ADVENTRX will seek protection under the
provisions of the U.S. Bankruptcy Code; the risk that ADVENTRX will
reassess the results of the ANX-530 bioequivalence study and
determine to conduct additional bioequivalence studies of ANX-530,
including in humans; the potential for regulatory authorities to
require additional preclinical work and/or clinical activities to
support regulatory filings, including prior to the submission or
the approval of an NDA for ANX-530, which activities may increase
the cost and timeline to NDA submission or approval; the risk the
FDA will determine that ANX-530 and Navelbine(R) are not
bioequivalent, including as a result of performing pharmacokinetic
equivalence analysis based on a patient population other than the
population on which ADVENTRX based its analysis; difficulties or
delays in manufacturing, obtaining regulatory approval for and
marketing ANX-530, including validating commercial manufacturing
processes and manufacturers, as well as suppliers; the risk that we
will trigger a "maintenance failure" under that certain Rights
Agreement, dated July 27, 2005, as amended, and be required to pay
liquidated damages, including as a result of losing our eligibility
to use Form S-3 if our common stock is delisted from the NYSE Amex;
and other risks and uncertainties more fully described in
ADVENTRX's press releases and in the prospectus supplement relating
to this offering, which will be filed with the Securities and
Exchange Commission. ADVENTRX's public filings with the Securities
and Exchange Commission are available at http://www.sec.gov/. You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date when made. ADVENTRX
does not intend to update any forward-looking statement as set
forth in this press release to reflect events or circumstances
arising after the date on which it was made. DATASOURCE: ADVENTRX
Pharmaceuticals, Inc. CONTACT: Brian Culley of ADVENTRX
Pharmaceuticals, Inc., +1-858-552-0866 Web Site:
http://www.adventrx.com/
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