PROTEIN POLYMER TECHNOLOGIES CLOSES $ 7.75 MILLION
PRIVATE PLACEMENT
SAN DIEGO,
April 18 -- Protein Polymer Technologies, Inc. (OTC Bulletin
Board: PPTI), a company focused on high performance bioactive
devices designed for improved surgical outcomes, announced
today the final closing of approximately $3.6 million of
a private placement of common stock and warrants yielding
total gross proceeds of approximately $7.75 million. Of
the committed capital, approximately $1.2 million represents
the conversion of short term promissory notes previously
issued by the Company. The net proceeds will be used to
fund Protein Polymer's research and clinical programs,
and for general corporate purposes, including potential
acquisitions. Investors in the private placement included
both institutional and individual accredited investors.
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.
"This cash infusion reflects the confidence of the investment community
in the development and commercialization of Protein Polymer's product candidates,
research pipeline and business strategy," commented William N. Plamondon,
Protein Polymer Technologies' Chief Executive Officer. "We will use the
proceeds to expand our clinical trials and accelerate the development of our
manufacturing process while we continue to advance our partnering efforts and
other commercialization opportunities. As a result, we will add more value to
our incontinence and dermal tissue augmentation products, and to our surgical
adhesives and sealants including the ongoing development of a spinal disc repair
product for Spine Wave."
In the private placement, the company issued 23,556,225 shares of common stock
at price of $0.33 per share, together with warrants for the purchase of an aggregate
of approximately 11,778,110 shares of common stock. The warrants are exercisable
at an exercise price of $0.50 per share, and expires approximately 48 months
after the close of the offering. The securities were sold to accredited investors
in a private placement pursuant to exemptions under the Securities Act of 1933,
as amended. The company has agreed to file a registration statement with the
Securities and Exchange Commission to permit the sale of the common shares, and
the underlying common shares following conversion of the warrants, within 30
days. Luther Capital Management, LLC and Palladium Capital Advisors, LLC, assisted
the Company with the transaction, receiving aggregate fees of approximately $425,000
and warrants to acquire approximately 120,000 shares of common stock exercisable
at any time and expiring approximately 5 years after issuance.
Contacts:
J. Thomas Parmeter, Ph.D.
Chairman
Protein Polymer Technologies, Inc.
(858) 558-6064
info@ppti.com
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About
Protein Polymer Technologies
Protein Polymer Technologies,
Inc., is a San Diego-based company focused on developing
bioactive devices 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-five U.S. Patents on its core technology with
corresponding
issued and pending patents in key international markets.
Safe Harbor
This press release contains forward-looking statements
that are based on management’s views and expectations.
Actual results could differ materially from those expressed
here; further, the Company is not obligated to comment
specifically on those differences. Risks associated with
the Company’s activities include raising adequate
capital to continue operations scientific and product
development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding,
regulatory testing and approvals, and manufacturing scale
up. The reader is encouraged to refer to the Company’s
2004
Annual Report Form 10-KSB, and other recent filings
with the Securities and Exchange Commission, copies of
which are available from the Company, to further ascertain
the risks associated with the above statements.
