CRANBURY, N.J. and FARMINGTON, Conn., Dec.
24, 2014 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE
MKT: PTN), a biopharmaceutical company developing targeted,
receptor-specific peptide therapeutics for the treatment of
diseases with significant unmet medical need and commercial
potential, today announced that it has closed on a private
placement of 2,050,000 shares of its common stock and Series C
warrants to purchase 24,949,325 shares of its common stock.
Funds under the management of QVT Financial LP invested
$10 million and another accredited
investment fund also invested $10
million. The funds paid $0.75
for each share of common stock and $0.74 for each Series C warrant, resulting in
gross proceeds to Palatin of $20
million, with net proceeds, after deducting estimated
offering expenses, of approximately $18.6
million.
Palatin also announced the closing of a $10 million venture loan led by Horizon
Technology Finance Corporation (NASDAQ: HRZN). The debt facility,
which includes an interest-only payment period for the first
eighteen months, is a four year senior secured term loan that bears
interest at a floating coupon rate of one-month LIBOR (floor of
0.50%) plus 8.50%. The lenders also received Series D warrants to
purchase 666,666 shares of Palatin's common stock.
"We believe this combination of equity and debt satisfies our
funding needs at an attractive cost of capital," said Stephen T. Wills, Chief Financial Officer and
Chief Operating Officer of Palatin. "With these transactions, we
have sufficient funding to achieve a number of key milestones in
calendar years 2015 and 2016."
Palatin intends to use the proceeds from the financings for
general corporate purposes and working capital, including its
bremelanotide phase 3 clinical trial program for female sexual
dysfunction, preclinical and clinical development of its
melanocortin receptor-1 peptide program, PL-3994 natriuretic
peptide advancement, and development of other portfolio
products.
The Series C warrants are exercisable at an initial exercise
price of $0.01 per share, exercisable
immediately upon issuance and expire on the tenth anniversary of
the date of issuance. The Series C warrants are subject to
limitation on exercise if QVT and its affiliates would beneficially
own more than 9.99% (4.99% for the other accredited investment fund
holder) of the total number of Palatin's shares of common stock
following such exercise.
The Series D warrants are exercisable at an initial exercise
price of $0.75 per share, exercisable
immediately upon issuance and expire on the fifth anniversary of
the date of issuance. The securities offered and to be sold by
Palatin in the private placement have not been registered under the
Securities Act of 1933, as amended, or state securities laws and
may not be offered or sold in the United
States absent registration with the Securities and Exchange
Commission ("SEC") or an applicable exemption from registration
requirements. Palatin has agreed to file a registration statement
with the SEC covering the resale of the shares of common stock
issued in the private placement and issuable upon exercise of the
Series C warrants.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About Palatin Technologies
Palatin Technologies, Inc.
is a biopharmaceutical company developing targeted,
receptor-specific peptide therapeutics for the treatment of
diseases with significant unmet medical need and commercial
potential. Palatin's strategy is to develop products and then form
marketing collaborations with industry leaders in order to maximize
their commercial potential. For additional information, please
visit Palatin's website at http://www.palatin.com.
About Horizon Technology Finance
Horizon Technology
Finance Corporation is a leading specialty finance company that
provides capital in the form of secured loans to venture capital
backed companies in the technology, life science, healthcare
information and services, and cleantech industries. The investment
objective of Horizon is to maximize total returns by generating
current income from a portfolio of directly originated secured
loans as well as capital appreciation from warrants that it
receives when making such loans. Headquartered in Farmington, Connecticut, Horizon has regional
offices in Walnut Creek,
California and Reston,
Virginia. Horizon's common stock trades on the NASDAQ Global
Select Market under the ticker symbol "HRZN". To learn more, please
visit www.horizontechnologyfinancecorp.com.
Forward-looking Statements
Statements in this press
release that are not historical facts, including statements about
future expectations of Palatin Technologies, Inc., such as
statements about the prospects of entering into one or more license
agreements in European countries or other regions relating to
bremelanotide, potential clinical trial results with bremelanotide,
potential actions by regulatory agencies in the United States or Europe relating to bremelanotide, regulatory
plans, development programs and the market potential of
bremelanotide are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and as that term is defined in the
Private Securities Litigation Reform Act of 1995. Palatin intends
that such forward-looking statements be subject to the safe harbors
created thereby. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
Palatin's actual results to be materially different from its
historical results or from any results expressed or implied by such
forward-looking statements. Palatin's actual results may differ
materially from those discussed in the forward-looking statements
for reasons including, but not limited to, the ability of Palatin
to enter into one or more agreements relating to the
commercialization of bremelanotide, results of nonclinical,
preclinical and toxicology studies, result of clinical trials,
regulatory actions by the FDA and other regulatory agencies and the
need for regulatory approvals, Palatin's ability to fund
development of its technology and establish and successfully
complete clinical trials, the length of time and cost required to
complete clinical trials and submit applications for regulatory
approvals, products developed by competing pharmaceutical,
biopharmaceutical and biotechnology companies, commercial
acceptance of Palatin's products, and other factors discussed in
Palatin's periodic filings with the Securities and Exchange
Commission. Palatin is not responsible for updating for events that
occur after the date of this press release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/palatin-completes-20-million-equity-and-10-million-debt-financings-300013861.html
SOURCE Palatin Technologies, Inc.