EMERYVILLE, Calif., Oct 02, 2009 /PRNewswire-FirstCall via COMTEX/ -- Bionovo, Inc. (Nasdaq: BNVI) today announced that it has entered into agreements with selected investors to sell up to 3,230,995 units at a price per unit of $6.20 for aggregate gross proceeds of up to $20.0 million. Each unit consists of ten shares of common stock and ten warrants. Each warrant entitles its holder to purchase one share of Bionovo common stock at an exercise price of $0.85. The warrants may be exercised at any time after six months from the date of the closing and will expire after five years. The offering is expected to close on or about Wednesday, October 7, 2009, subject to customary closing conditions.
Bionovo expects to use the net proceeds from this offering to advance its lead drug candidate for postmenopausal vasomotor symptoms, Menerba, into Phase 3 clinical trials, and the remaining net proceeds, if any, for general corporate purposes.
Dawson James Securities acted as the exclusive placement agent for the offering. Bionovo granted the placement agent a 30-day option to arrange for the sale of up to an additional 484,649 units (consisting of 4,846,493 shares and 4,846,493 warrants) to cover over-allotments.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any 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. A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective. You may obtain these documents for free by visiting EDGAR on the SEC's website, at www.sec.gov. Alternatively, a copy of the prospectus may be obtained from Dawson James Securities, Attention: Monique Maclaren, 925 South Federal Highway, Suite 600, Boca Raton, Florida, 33432-6145 or by calling toll free at (866) 928-0928.
Bionovo, Inc. is a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, markets with significant unmet needs and billions in potential annual revenue. Bionovo applies its expertise in the biology of menopause and cancer to design new drugs derived from botanical sources which have novel mechanisms of action. Based on the results of early and mid-stage clinical trials, Bionovo believes it has discovered new classes of drug candidates within its pipeline with the potential to be leaders in their markets. Bionovo is headquartered in Emeryville, California and is traded on the NASDAQ Capital Market under the symbol, "BNVI".
Forward Looking Statements
This release contains certain forward-looking statements relating to the business of Bionovo, Inc. that can be identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development, efficacy and safety, regulatory actions or delays, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, physician acceptance, third party reimbursement, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. Bionovo, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Bionovo, Inc.