MISSION VIEJO, CA -- (Marketwire) -- 02/19/13 -- Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS), a biotechnology company leveraging significant government funding to develop a platform of novel compounds to protect against radiological and chemical threats and for use in oncology, announced today that it has entered into definitive agreements with certain institutional and other accredited investors to raise gross proceeds of $3.2 million in a private placement financing. The investors comprised both new and existing investors in the Company, including entities associated with BVF Partners L.P., a leading life sciences investment firm, which manages the Biotechnology Value Fund family of funds.
Pursuant to the purchase agreement, Aeolus has agreed to issue an aggregate of 12,900,000 shares of the Company's common stock at a price per share of $0.25, as well as 5-year warrants to purchase up to an aggregate of 12,900,000 shares of common stock with an exercise price of $0.25 per share.
Net proceeds from this offering will be used for general corporate and working capital purposes, primarily to continue development of AEOL10150 as a medical countermeasure for the pulmonary effects of acute radiation syndromes, under a development contract with BARDA. The closing of the offering is expected to occur on February 20, 2013.
Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS), served as the exclusive placement agent for the offering. Columbia Capital Securities, Inc., and Monarch Bay Associates, LLC provided advisory services to Aeolus.
The securities offered in this private placement transaction have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Pursuant to the terms of a registration rights agreement entered into with the investors, Aeolus has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock sold in the offering and issuable upon exercise of the warrants. Any offering of Aeolus' securities under the resale registration statement referred to above will be made only by means of a prospectus.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About AEOL 10150
AEOL 10150 is a broad-spectrum catalytic antioxidant specifically designed to neutralize reactive oxygen and nitrogen species. The neutralization of these species reduces oxidative stress, inflammation, and subsequent tissue damage-signaling cascades resulting from radiation exposure. AEOL 10150 may have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation in the treatment of oncology.
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