DARA BioSciences to Raise $10.1 Million in Public Offering
RALEIGH, N.C., April 9, 2012 (GLOBE NEWSWIRE) -- DARA BioSciences, Inc. (Nasdaq:DARA) (the "Company" or "DARA") announced that it entered into definitive securities purchase agreements with certain investors in connection with a public offering providing for the sale of $10,100,000 of shares of Series B-2 convertible preferred stock (which are convertible into a total of 10,100,000 shares of common stock), five year warrants to purchase up to 5,050,000 shares of common stock at an exercise price of $1.00 per share and five year warrants to purchase up to 5,050,000 shares of common stock at an exercise price of $1.25 per share. The Series B-2 convertible preferred stock is convertible at any time into shares of common stock at an initial conversion price of $1.00 per share The conversion price represents approximately a 25% discount to the volume weighted average trading price of the Company's common stock during the five trading days preceding entry into the securities purchase agreements.
The financing will provide the Company with net proceeds of approximately $9.0 million to be used to fund expenses associated with the Company's efforts to develop and commercialize a portfolio of oncology treatment and supportive care pharmaceutical products and for working capital.
Ladenburg Thalmann & Co., Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE Amex:LTS), acted as the exclusive placement agent for this offering.
The closing of the sale of the securities is expected to take place on or about April 12, 2012, subject to satisfaction of customary closing conditions.
The securities were offered pursuant to an effective registration statement. This news release does not constitute an offer to sell these securities or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About DARA BioSciences, Inc.
DARA is a specialty pharmaceutical company focused on the development and commercialization of oncology treatment and supportive care products. DARA sharpened its focus in oncology through its January 2012 acquisition of Oncogenerix, Inc., which holds the exclusive U.S. marketing rights to Soltamox®. Soltamox® is a novel oral liquid formulation of tamoxifen, a product used widely in the treatment and prevention of breast cancer. Soltamox® is the only FDA approved oral liquid version of tamoxifen and fulfills a vital clinical need for patients who cannot tolerate existing tablet formulations of this drug. DARA plans to begin marketing Soltamox® in the U.S. in the third quarter of 2012.
In March, DARA obtained exclusive U.S. commercial rights from Innocutis Holdings, LLC for Bionect® (hyaluronic acid sodium salt, 0.2%) within the oncology and radiation oncology marketplace. Bionect® is an FDA-approved product indicated for the management of irritation of the skin as well as first and second degree burns. Bionect® is currently being promoted and sold by Innocutis in the dermatology market. DARA plans to launch this product in 2Q 2012.
Prior to acquiring Oncogenerix, DARA was focused on the development of a cancer-support therapeutic compound, KRN5500, for the treatment of neuropathic pain in patients with cancer. This product is an excellent fit with DARA's strategic oncology focus and has successfully completed a Phase IIa study and has been designated as a Fast Track Drug by the United States Food and Drug Administration. We are working with the National Cancer Institute (NCI) to design an additional clinical trial under joint DARA-NCI auspices while considering further internal Phase 2 development.
In addition to its oncology products, DARA's pipeline includes DB959, a novel, non-TZD dual delta/gamma PPAR agonist for the treatment of type 2 diabetes and dyslipidemia. DARA has completed Phase I testing of DB959 and is presently pursuing opportunities to out-license this product.
DARA also has rights to other PPAR and DPPIV-inhibitor compounds for which it intends to seek out-licensing or partnering opportunities.
For more information please visit our web site at http://www.darabio.com
The DARA BioSciences, Inc. logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=11403.
Safe Harbor Statement
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to factors that could cause actual results to differ materially for DARA from those projected. Those factors include risks and uncertainties relating to the closing of the offering described in this news release, DARA's ability to timely commercialize and generate revenues or profits from Bionect(R), Soltamox(R) or other products given DARA's lack of a current sales force and lack of history as a revenue-generating company, FDA and other regulatory risks relating to DARA's ability to market Bionect(R), Soltamox(R) or other products in the U.S. or elsewhere, DARA's ability to develop and bring new products to market as anticipated, DARA's current cash position and its need to raise additional capital in order to be able to continue to fund its operations, the current regulatory environment in which the company develops and sells its products, the market acceptance of those products, dependence on partners, successful performance under collaborative and other commercial agreements, competition, the strength of DARA's intellectual property and the intellectual property of others, the potential delisting of DARA's common stock from the NASDAQ Capital Market, risks and uncertainties relating to DARA's ability to successfully integrate Oncogenerix and other risk factors identified in the documents DARA has filed, or will file, with the Securities and Exchange Commission ("SEC"). Copies of DARA's filings with the SEC may be obtained from the SEC Internet site at http://www.sec.gov. DARA expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DARA's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. DARA BioSciences and the DARA logo are trademarks of DARA BioSciences, Inc.
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