Sonus Pharmaceuticals Inc, an oncology drug development company, announced the completion of a private placement that raised approximately $15.2 million in gross proceeds (net proceeds of approximately $14.4 million) with a select group of institutional investors. In connection with the financing, the Company issued 2.9 million shares of common stock at a price of $5.25. Granite Financial Group, Inc., based in San Diego, acted as the placement agent for the financing.
Sonus expects to use proceeds of the sale primarily for the continuing advancement of its lead product candidate, TOCOSOL Paclitaxel, currently in Phase 2b clinical trials, as well as to accelerate the preclinical development of other oncology product candidates. In 2003, the Company completed patient enrollment in Phase 2a clinical studies of TOCOSOL Paclitaxel in non-small cell lung, ovarian and bladder cancers.
"Our key strategic initiatives remain on track, and this private placement gives us greater leverage to achieve those objectives over the next 12 months," said Michael A. Martino, President and CEO of Sonus. "In addition to providing resources and the flexibility to broaden our product development pipeline, the financing enhances our ability to drive the multi-path strategy for regulatory approval of TOCOSOL Paclitaxel and strengthens the foundation for our corporate development activities."
The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy common stock of Sonus.
Sonus is developing a number of potential product candidates for the treatment of cancer using its proprietary TOCOSOL(TM) drug delivery system, a vitamin-E based emulsion technology. The development of cancer therapeutics with the TOCOSOL technology may result in products that can be delivered more safely and effectively. The Company's lead product is TOCOSOL Paclitaxel, a novel formulation of paclitaxel, one of the most widely prescribed cancer drugs on the market today. The product offers the convenience of a ready-to-use formulation, which does not require reconstitution, dilution or preparation as is required with the marketed paclitaxel products.