Adeona to Raise $3.5 Million in Registered Direct Offering
ANN ARBOR, Mich., April 7, 2011 /PRNewswire/ -- Adeona Pharmaceuticals, Inc. (AMEX: AEN ), a developer of innovative medicines for serious central nervous system diseases, announced today that it has executed an agreement for the sale of 1,688,782 shares of its common stock at approximately $2.0725 per share to a new institutional investor in a registered direct offering for $3.5 million in gross proceeds. The investor will also receive warrants to purchase approximately 844,391 shares of common stock at an exercise price of $2.0725 per share. The warrants are exercisable upon issuance for a period of 13 months from the closing date. If exercised for cash, the warrants are expected to generate up to an additional $1.75 million in proceeds to Adeona.
"In addition to funding the continued development of our reaZin™ zinc-based medical food product candidate for Alzheimer's disease and our Trimesta drug product candidate for the treatment of multiple sclerosis, this financing will also allow us to explore new opportunities," stated James S. Kuo, M.D., M.B.A., Adeona's Chairman and CEO.
The offering is expected to close on or before April 11, 2011, subject to customary closing conditions, including approval by the NYSE AMEX. The net proceeds of approximately $3.25 million will be used for general corporate purposes, including conducting operations and advancing our clinical development programs.
Chardan Capital Markets acted as the sole placement agent for this transaction.
The shares and warrants are being offered in a registered direct offering under the Company's effective shelf registration statement previously filed on Form S-3 with the Securities and Exchange Commission (SEC). This offering will be made by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained, when available, from <