CRANBURY, N.J. and FARMINGTON, Conn., July
6, 2015 /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 Series E warrants to purchase 21,917,808 shares of its
common stock and Series F warrants to purchase 2,191,781 shares of
its common stock. Certain funds managed by QVT Financial LP
invested $5 million and another
accredited investment fund invested $15
million. The funds paid $0.90
for each Series E warrant and $0.125
for each Series F warrant, resulting in gross proceeds to Palatin
of $20 million, with net proceeds,
after deducting estimated offering expenses, of approximately
$19.8 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 18
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 G warrants to purchase
549,450 shares of Palatin's common stock.
"With these financing transactions, we expect to have sufficient
funding to complete our pivotal Phase 3 clinical trials on
bremelanotide for female sexual dysfunction and, assuming results
are positive, complete required ancillary studies preparatory to
filing a regulatory application for approval of bremelanotide by
the Food and Drug Administration," said Stephen T. Wills, Chief Financial Officer and
Chief Operating Officer of Palatin. "These transactions should give
us sufficient funding to reach important inflection points for
bremelanotide and other key product areas."
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-1and -4 peptide programs, PL-3994 natriuretic
peptide advancement, and development of other portfolio
products.
The Series E 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 E 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 F warrants are exercisable at an initial exercise
price of $0.91 per share, exercisable
immediately upon issuance and expire on the fifth anniversary of
the date of issuance. The Series F warrants are subject to
the same beneficial ownership limitation as the Series E
warrants.
The Series G warrants are exercisable at an initial exercise
price of $0.91 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
(the "Securities Act"), 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 (the "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
issuable upon exercise of the Series E, Series F, and Series G
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 potential clinical
trial results with bremelanotide, advancement of other program
products, 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, Section 21E of the Securities
Exchange Act of 1934, as amended, 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 SEC. Palatin undertakes no
obligation to update these forward-looking statements in light of
actual results or events that occur after the date of this press
release.
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SOURCE Palatin Technologies, Inc.