BioSante Pharmaceuticals To Raise $3,475,000 In Registered Direct Offering

BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) today announced that it has received a commitment from an institutional investor to purchase $3,475,000 of securities in a registered direct offering. BioSante expects to receive net proceeds of approximately $3.3 million after deducting placement agent fees and other offering expenses. BioSante has entered into a securities purchase agreement with this investor pursuant to which BioSante has agreed to sell 2,359,932 shares of its common stock and warrants to purchase up to 1,179,966 additional shares of its common stock. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, will be sold for a purchase price of $1.4725, a premium to the closing price on the day before pricing.

"We are pleased to have this commitment from this new institutional investor," said Stephen M. Simes, BioSante's president and chief executive officer. "This funding provides us with additional working capital to increase our cash reserve for payment of our near-term debt, to fund our LibiGel ^® clinical activities, and continue to seek and implement alternatives with respect to our products and company, including licenses, business collaborations and other business combinations or transactions with other pharmaceutical and biotechnology companies."

The warrants to purchase additional shares will be exercisable at an exercise price of $1.50 per share beginning immediately and will expire five years from their date of issuance. All of the securities were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including increasing its cash reserve for payment of its 3.125% convertible senior notes due May 1, 2013 and to fund its LibiGel ^® clinical activities. The offering is expected to be consummated by August 21, 2012, subject to customary closing conditions.

Rodman & Renshaw, LLC is acting as the exclusive placement agent for the transaction.

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