PROTEIN POLYMER TECHNOLOGIES REPORTS NEW
EQUITY INVESTMENT
SAN DIEGO, March 27, 2003 -- Protein Polymer Technologies, Inc. (OTC Bulletin
Board: PPTI), reports today that a small group of institutional and accredited
investors committed $3,005,000 for the purchase of an aggregate of 30,050
shares of the Company’s Series I Preferred Stock together with
warrants for the purchase of an aggregate of approximately 2,185,455 shares
of common stock. The Series I Preferred Stock was priced at $100 per share.
Each share of Series I Preferred Stock is convertible at any time at the
election of the holder into approximately 182 shares of common stock at
a conversion price of $0.55 per share, subject to certain antidilution adjustments.Ý
Each share of Series I Preferred Stock also received warrants to purchase
common stock. Two warrants are exercisable at any time, each for approximately
27 shares of common stock, at exercise prices of $0.65 and $0.88 per share,
and expire approximately eighteen months after the close of the offering;
an additional warrant is exercisable at any time for approximately 18 shares
of common stock at an exercise price of $1.65 per share, and expires approximately
forty-eight months after the close of the offering.Ý These securities have
not been registered under the Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent such registration or
any applicable exemption therefrom.
As a condition to the closing of the private placement, the Company agreed
that at its annual meeting of stockholders to be held in April 2003, the
size of the Company's board of directors would be decreased to seven, with
current directors J. Thomas Parmeter, Ph.D., Edward J. Hartnett, Kerry L.
Kuhn, M.D., Phillip J. Davis and George R. Walker to be renominated and
Phillip Berman, M.D. and Edward G. Cape, Ph.D., to be nominated for initial
terms for election by the Company's stockholders.
Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing products to improve medical and surgical outcomes. From its
inception in 1988, PPTI has been a pioneer in protein design and synthesis,
creating an extensive portfolio of proprietary biomaterials for use in the
development of bioactive devices. These genetically engineered biomaterials
are high molecular weight proteins, processed into products with physical
and biological characteristics tailored to specific clinical performance
requirements. Targeted products include urethral bulking agents for the
treatment of stress urinary incontinence, dermal augmentation products for
cosmetic and reconstructive surgery, surgical adhesives and sealants, scaffolds
for wound healing and tissue engineering, and depots for local drug delivery.
To date, PPTI has been issued twenty-four U.S. Patents on its core technology
with corresponding issued and pending patents in key international markets.
CONTACTS:
J. Thomas Parmeter
President
Janis Y. Neves
Director of Finance
(858) 558-6064 e-mail: info@ppti.com
