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PHARMOS ANNOUNCES $10 MILLION PRIVATE PLACEMENT; CAPITAL STRUCTURE SIMPLIFIED THROUGH WARRANT EXCHANGE

 NEW YORK, Aug. 16 /PRNewswire/ -- Pharmos Corporation (NASDAQ: PARS) announced today that it had signed contracts with investors to sell $10 million of newly issued common stock in a private placement at a per share price of $1.50. The company will receive the net proceeds from the transaction upon the earlier of the effectiveness of a registration statement to be filed by Pharmos covering resales by purchasers or ninety days. The transaction was arranged by Tucker Anthony Incorporated, and D. Blech & Co.
 In connection with the private placement, David Blech agreed to cancel 7.2 million of his $1.25 and $1.75 per share warrants in exchange for 3.5 million shares of Pharmos common stock subject to a fairness opinion. "These transactions will further fund the company and simplify its capital structure to allow a broader institutional following," said Stephen R. Streber, president and chief operating officer.
 Pharmos, a drug delivery company focused on diseases of the eye and central nervous system, intends to use the proceeds to complete the Phase III clinical trials of its lead product, Loteprednol Etabonate, for the treatment of ocular inflammation. The Phase III trials currently underway are expected to be completed in early 1994 permitting the submission of the New Drug Application (NDA) to the FDA in mid-1994.
 Other products to be supported by these funds include Phase II clinical trial of both Adaprolol Maleate and a twice-a-day formulation of Pilocarpine, two anti-glaucoma agents with different therapeutic mechanisms; a Phase II study of E2CDS, Pharmos' blood brain barrier- penetrating estradiol for post menopausal conditions; and Phase I trials of HU-211, a neuroprotectant for the treatment of stroke and head trauma.
 "We are pleased to complete this financing and to arrange this exchange of warrants in this uncertain biotechnology market," said Haim Aviv, Ph.D. chairman and CEO. "We can now focus the company's efforts on completing advanced clinical trials and NDA submissions of Pharmos' lead products."
 Pharmos Corporation is engaged in the development of novel pharmaceuticals based on innovative drug delivery technologies targeting diseases of the eye, principally glaucoma and ocular inflammation, and the brain, principally stroke and head trauma.
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 /CONTACT: Stephen R. Streber, president and COO of Pharmos Corporation, 212-838-0087, or Anthony J. Russo, Ph.D., of Noonan/Russo Communications, 212-696-4455, or (investors) Donald C. Weinberger of Strategic Growth International, 212-826-9622/
 (PARS)


CO: Pharmos Corporation ST: New York IN: HEA SU:

WB-TS -- NY088 -- 3242 08/16/93 16:20 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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