Corautus Genetics Announces $2.25 Million Private Placement.Health/Medical Writers ATLANTA--(BUSINESS WIRE)--March 19, 2004 Corautus Genetics Inc. (AMEX AMEX See: American Stock Exchange : CAQ CAQ Center for Audit Quality (New York, New York) CAQ Certificat d'Acceptation du Quebec CAQ Computer-Aided Quality Assurance CAQ Certificate of Added Qualification CAQ Computer-Aided Quality Control CAQ Condition Adverse to Quality ) announced it has closed a $2,250,000 financing transaction through the sale of 376,000 shares of common stock to two institutional investors. The shares were priced at 88% of the price at which common stock of Corautus was traded on the day prior to the execution of the contracts. Under the terms of the transaction, the investors also received warrants for 18,800 shares of common stock, exercisable at $8.375 per share, which was 125% of the closing price of the common stock on the date prior to the closing. No placement fees were paid in the transaction. Richard E. Otto, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , of Corautus Genetics, stated, "We are pleased that we continue to attract new funds into Corautus and expand our base of shareholders. This additional financing will support the advancement of our VEGF-2 therapeutic through the clinical trial process." Since December 2003, Corautus has raised a total of $10.7 million, in addition to the $2.5 million loan facility advance from Boston Scientific Corporation. About Corautus Genetics Corautus Genetics Inc. is a clinical stage biopharmaceutical company dedicated to the development of gene transfer therapy products for the treatment of severe cardiovascular and peripheral vascular disease Peripheral Vascular Disease Definition Peripheral vascular disease is a narrowing of blood vessels that restricts blood flow. It mostly occurs in the legs, but is sometimes seen in the arms. . Corautus is currently developing a gene transfer product using the Vascular Endothelial Growth Factor Vascular endothelial growth factor (VEGF) is an important signaling protein involved in both vasculogenesis (the de novo formation of the embryonic circulatory system) and angiogenesis (the growth of blood vessels from pre-existing vasculature). 2 (VEGF-2) gene to promote therapeutic angiogenesis in ischemic Ischemic An inadequate supply of blood to a part of the body, caused by partial or total blockage of an artery. Mentioned in: Antiangiogenic Therapy, Subarachnoid Hemorrhage, Ventricular Fibrillation ischemic muscle. In July 2003, Corautus entered into a series of agreements with Boston Scientific Corporation to fund, develop, commercialize and distribute the VEGF-2 gene therapy products. Forward Looking Statement This press release may contain forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain factors, risks and uncertainties that may cause actual results, events and performances to differ materially from those referred to in such statements. These risks include statements which address operating performance, events or developments that we expect or anticipate will occur in the future, such as projections about our future results of operations or our financial condition, benefits from the alliance with Boston Scientific, research, development and commercialization of our product candidates, anticipated trends in our business, approval of our product candidates and other risks that could cause actual results to differ materially. These risks are discussed in Corautus Genetics Inc.'s Securities and Exchange Commission filings, including, but not limited to, the risk factors in Corautus' Amendment No. 1 to Registration Statement on Form S-3 (File No. 333-112239) filed February 2, 2004, which are incorporated by reference into this press release. |
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