Corautus Genetics Inc. Announces Reverse Stock Split and Plans for Private Financing.Business Editors SAN DIEGO--(BUSINESS WIRE)--Feb. 11, 2003 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 ) formed by the merger of GenStar Therapeutics Corporation and Vascular Genetics Inc. announced that its board of directors authorized a reverse stock split at a ratio of 1-for-7 (1:7). The reverse stock split will become effective upon final approval by the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. . The stockholders of GenStar Therapeutics Corporation (the predecessor to Corautus) authorized the reverse stock split at its annual meeting of stockholders held February 4, 2003. Richard Otto, Chief Executive Officer of Corautus, stated: "With the merger activities completed, the company can now focus on building shareholder value by bringing together an experienced team of scientists, clinical specialists and management to implement the development plan for VEGF-2, a vascular growth factor gene, clinical trials. Corautus is now tightly focused on completing the activities necessary to advance to the next phase of clinical evaluation clinical evaluation Medtalk An evaluation of whether a Pt has symptoms of a disease, is responding to treatment, or is having adverse reactions to therapy of VEGF-2 for the treatment of severe cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease ." Corautus has also announced that it will be seeking financing in a private equity placement or similar type financing. The terms of the potential investment have not been determined. Robert Atwood, Chief Financial Officer of Corautus, stated: "Corautus will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the investment to conduct its next phase of clinical trials and for working capital." About Corautus Genetics Corautus Genetics Inc. is a biopharmaceutical company dedicated to the development of innovative gene therapy products for the treatment of cardiovascular disease. Corautus Genetics was formed by the merger of Vascular Genetics Inc. with GenStar Therapeutics Corporation to capitalize on the complementary strengths of these companies to accelerate the development of a later stage product for cardiovascular disease. Corautus Genetics's core technology is based upon gene therapy for "therapeutic angiogenesis." In this approach, the injection of genes for vascular growth factors stimulate the formation of new blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. to help compensate for reduced blood flow due to advanced cardiovascular disease. The focus of the company's efforts will be the clinical development of gene therapy products using a vascular growth factor gene (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 or "VEGF-2") for the treatment of severe cardiovascular disease. 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, synergies from the merger between GenStar and Vascular Genetics, 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 GenStar Therapeutics Corporation's Securities and Exchange Commission filings, including, but not limited to, the risks discussed in GenStar's Registration Statement on Form S-4, as amended (File No. 333-101606) filed December 19, 2002, all of which are incorporated by reference into this press release. |
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