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Oct. 29, 2012 /PRNewswire/ -- Synthetic Biologics, Inc. (NYSE MKT: SYN), a developer of synthetic biologics and innovative medicines for serious diseases and unmet medical needs, announced today that it has entered into definitive stock purchase agreements with accredited investors to raise approximately
$10.8 million in a private placement financing. Pursuant to the stock purchase agreements, the Company will issue approximately 6.8 million shares of its common stock at a purchase price of
$1.60 per share to new and existing investors. Existing investors and an affiliate of
R.J. Kirk constitute a majority of the participating investors in this transaction.
"We are very pleased to receive such solid support from both our new and existing investors, who share our vision of the emerging field of synthetic biologics," stated
Jeffrey Riley, Chief Executive Officer of Synthetic Biologics, Inc. "This new capital provides us with a strong cash position going forward. It allows us to advance our lead programs to develop monoclonal antibody therapies for certain infectious diseases and a synthetic DNA-based therapy for pulmonary arterial hypertension through our Exclusive Channel Collaborations with Intrexon Corporation. We believe that we are well-positioned to achieve significant milestones related to these cutting edge development programs."
In addition to funding the Company's monoclonal antibody and synthetic DNA programs, the net proceeds are intended to be used for general corporate purposes, including the execution of its business plan as well as the expansion and advancement of its pipeline.
The common stock sold in the private placement transaction has not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws and was issued and sold in reliance upon the exemption from registration contained in Section 4(2) of the Securities Act and Regulation D promulgated thereunder. Accordingly, the securities issued in the private placement may not be offered or sold in
the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
The Company has also agreed to provide registration rights to the investors with respect to the shares issued to them in this private placement.