Aradigm Corporation (NASDAQ: ARDM) (the "Company") today announced financial results for the third quarter and nine months ended September 30, 2016. Third Quarter 2016 Financial Results The Company recorded $50,000 in revenue in the third quarter of 2016 compared with $4.7 million in revenue in the third quarter of 2015. The reduction in revenue occurred because the Company utilized in prior periods the full amount of the $65 million of Grifols-funded budget provided under the inhaled ciprofloxacin collaboration arrangement for funding the bronchiectasis program. Total operating expenses for the third quarter of 2016 were $7.3 million, compared with total operating expenses of $10.2 million for the third quarter of 2015. The decrease in research and development expenses was due to lower contract manufacturing and clinical trial costs because the manufacturing, labeling and packaging expenses for clinical supplies and the enrollment activities of the Pulmaquin® Phase 3 clinical trials are complete, offset by higher employee-related expenses due to the higher number of employees and higher consulting expenses in support of the Pulmaquin bronchiectasis regulatory process towards US and EU approvals for market authorization. Net loss for the third quarter of 2016 was $8.2 million or $0.55 per share, compared with a net loss of $5.5 million or $0.38 per share in the third quarter of 2015. Net loss increased due to lower contract revenue of $4.6 million and higher interest expense of $0.9 million, partially offset by lower operating expenses of $2.9 million. Liquidity and Capital Resources In April 2016, the Company entered into a private placement conducted pursuant to Regulation D under the Securities Act of 1933, as amended, of $23 million of its senior convertible notes due 2021 and related warrants to purchase 263,436 shares of the Company's common stock. The convertible notes are initially convertible into 191.9386 shares of common stock for each $1,000 principal amount of notes, which represents an initial conversion price of approximately $5.21 per share of common stock. Interest on the notes will be paid semi-annually in arrears at the rate of 9% per year. The warrants are exercisable at an exercise price of $5.21 per share beginning on the later of 180 days after the date of issuance or the date the Company issues a press release announcing data related to the ORBIT-3 and ORBIT-4 Phase 3 pivotal clinical trials in non-cystic fibrosis bronchiectasis (non-CF BE) patients with chronic respiratory infections with Pseudomonas aeruginosa treated with the Company's investigational product Pulmaquin (proprietary formulation of inhaled ciprofloxacin). The first closing of the sale of the notes and warrants occurred on April 25, 2016 and the second closing occurred on July 14, 2016. The Company intends to use the $20.7 million in net proceeds from the offering to fund the current clinical development and regulatory submission for licensure of Pulmaquin and for general corporate purposes.