NORCROSS, Ga., Aug. 21, 2013 (GLOBE NEWSWIRE) -- Galectin Therapeutics Inc. (Nasdaq:GALT), the leading developer of therapeutics that target galectin proteins to treat fibrosis and cancer, today announced completion of a $3 million private placement of 500,000 shares of unregistered common stock to a single investor. The common stock was priced at $6.00 per share, which represented an approximate 10% discount from the 15 day volume weighted average trading price, offset by the fact that there were no stock purchase warrants, placement fees or other fees typically associated with an equity investment of this magnitude.
"We are pleased and gratified in the confidence demonstrated in the Company by this investment," said Peter G. Traber, M.D., Chief Executive Officer, President and Chief Medical Officer, Galectin Therapeutics. "Completing this transaction significantly increases our cash resources. We recently were granted Fast Track designation by FDA for GR-MD-02 in NASH or fatty liver disease with advanced fibrosis, and we expect the additional funds will allow us to obtain meaningful data from our current Phase 1 clinical trial and expedite activities antecedent to the start of the Phase 2 clinical program."
Previously, the Company announced it had $5.1 million of non-restricted cash and cash equivalents available at June 30, 2013 and subsequently received $2.4 million from the exercise of warrants. With the addition of the $3 million in proceeds from the current transaction, the Company believes it has sufficient funding for operations and planned research and development through the second quarter of 2014.The securities sold in the private placement have not been registered under the Securities Act of 1933, 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 (SEC) or an applicable exemption from such registration requirements. The Company is not required to file a registration statement with the SEC specifically for registering the resale of the shares of common stock sold in this private placement; however, these shares will be included in a future registration statement.