Manhattan Pharmaceuticals Completes $8.6 Million Private Placement
April 02 2007 - 9:29AM
PR Newswire (US)
NEW YORK, April 2 /PRNewswire-FirstCall/ -- Manhattan
Pharmaceuticals, Inc. (AMEX:MHA) today announced it completed a
private placement of common stock and warrants with certain
institutional and other accredited investors. The company expects
to use the net proceeds for general corporate purposes. The company
sold approximately 10.2 million shares of its common stock for a
purchase price of $0.84 per share, including the sale of
approximately 56,000 shares to an affiliate of the company at a
purchase price of $0.90 per share (the closing price of the
company's common stock on March 29, 2007). In addition, the company
issued to the investors 5-year warrants to purchase an aggregate of
approximately 3.6 million shares at an exercise price of $1.00. The
aggregate gross proceeds of the offering are approximately $8.6
million and aggregate net proceeds are expected to be approximately
$7.9 million. Paramount BioCapital, Inc. served as placement agent
for the transaction. The securities offered and sold 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 or an applicable exemption from the
registration requirements of the Securities Act. As part of the
terms of the private placement, the company is obligated to file a
registration statement to register for resale under the Securities
Act the shares of common stock issued or issuable in connection
with the private placement. This announcement does not constitute
an offer to sell, nor is it a solicitation of an offer to buy,
these securities. About Manhattan Pharmaceuticals, Inc. Manhattan
Pharmaceuticals, Inc., a development-stage pharmaceutical company,
acquires and develops proprietary prescription drugs for large,
underserved patient populations. In view of the worldwide obesity
epidemic, the company is developing OE, an orally administered
novel therapeutic for the treatment of both common obesity and
morbid obesity. To meet the needs of other major, underserved
medical markets Manhattan Pharmaceuticals is also developing
topical PTH (1-34), a peptide believed to be a regulator of
epidermal cell growth, for the treatment of psoriasis, and Propofol
Lingual Spray, a convenient, proprietary lingual spray formulation
of propofol, the world's best-selling general anesthetic, as a
sedative-hypnotic for use during diagnostic and therapeutic
procedures. (http://www.manhattanpharma.com/) Note Regarding
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve
risks and uncertainties that could cause Manhattan Pharmaceutical's
actual results to differ materially from the anticipated results
and expectations expressed in these forward-looking statements.
These statements are often, but not always, made through the use of
words or phrases such as "anticipates," "expects," "plans,"
"believes," "intends," and similar words or phrases. These
statements are based on current expectations, forecasts and
assumptions that are subject to risks and uncertainties, which
could cause actual outcomes and results to differ materially from
these statements. Among other things, there can be no assurances
that any of Manhattan's development efforts relating to its product
candidates will be successful. Other risks that may affect
forward-looking information contained in this press release include
the possibility of being unable to obtain regulatory approval of
Manhattan's product candidates, the risk that the results of
clinical trials may not support Manhattan's claims, Manhattan's
reliance on third-party researchers to develop its product
candidates, and its lack of experience in developing and
commercializing pharmaceutical products. Additional risks are
described in the company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-KSB for the year
ended December 31, 2005. Manhattan assumes no obligation to update
these statements, except as required by law. Contact: Michael G.
McGuinness Chief Financial Officer Manhattan Pharmaceuticals, Inc.
212/582-3950 Thomas Redington Redington, Inc. 203/222-7399
212/926-1733 DATASOURCE: Manhattan Pharmaceuticals, Inc. CONTACT:
Michael G. McGuinness, Chief Financial Officer, Manhattan
Pharmaceuticals, Inc., +1-212/582-3950; Thomas Redington,
Redington, Inc., +1-203-222-7399, or +1-212-926-1733, for Manhattan
Pharmaceuticals, Inc. Web site: http://www.manhattanpharma.com/
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