Synergy Pharmaceuticals, Inc. (OTCQB:SGYP), a developer of new drugs to treat gastrointestinal (GI) disorders and diseases, announced today that it has completed a financing in which it raised gross proceeds of approximately $5.648 million through the sale of 2,657,882 units, each unit consisting of one share of common stock and one common stock purchase warrant, at a purchase price of $2.125 per unit. The warrants are immediately exercisable at an exercise price of $2.75 per share and are exercisable for five years. The proceeds from the financing will be used for working capital, to advance clinical development of plecanatide and to bring SP-333, Synergy’s second-generation GC-C receptor analog into the clinic.
SP-333 is a second-generation guanylate cyclase C (GC-C) agonist with the potential to treat gastro-intestinal diseases such as ulcerative colitis. Synergy plans to file an Investigational New Drug (IND) application for SP-333 in the first half of 2012, and initiate a Phase I trial of SP-333 in healthy volunteers in 2012. SP-333 will be the second drug from Synergy’s portfolio of GC-C agonists to enter the clinic.
"SP-333, to our knowledge, represents the most stable GC-C agonist ever developed," stated Dr. Gary S. Jacob, President and Chief Executive Officer of Synergy Pharmaceuticals. “The stability of SP-333 to proteolytic degradation in simulated intestinal fluid suggests it to be an ideal GC-C agonist for exploring this class of drugs to treat inflammatory bowel diseases such as ulcerative colitis.”
The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to the effectiveness of a registration statement or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities.