Protein Polymer Announces Completion of Private Placement, Additional
Investment Raises Total to $5.4 Million
Directors Elected During Annual Meeting of Stockholders
SAN DIEGO, May 19, 1998 -- Protein Polymer Technologies,
Inc. (Nasdaq: PPTI) today announced during its annual meeting of stockholders
that it has just completed a $5.4 million private placement of convertible
preferred stock and warrants. The Company had previously announced
an initial closing of $3.9 million.
The Company also announced the initial election of J.
P. Jones, former head of medical product development at Proctor and Gamble,
to its Board of Directors, and the reelection of seven current members of
the Company's Board of Directors. In other business, stockholders
approved an amendment to the Company's 1992 Stock Option Plan and ratified
Ernst & Young, LLP, as the Company's independent public accountants
for the 1998 fiscal year.
Newly elected to the Board of Directors was J. Paul Jones,
Ph.D., Vice President, Research & Product Development (retired), Procter
& Gamble Company. Reelected Directors included: Patricia J. Cornell,
Vice President and Director of Taurus Advisory Group, a registered investment
adviser; Edward E. David, Ph.D., technology consultant and former U.S. Presidential
Assistant for Science and Technology; Philip J. Davis, Senior Vice President,
Donaldson Lufkin & Jenrette; Edward J. Hartnett, Company Group Chairman
(retired), Johnson & Johnson Company; Brent R. Nicklas, Managing General
Partner, Lexington Partners; J. Thomas Parmeter, Ph.D., President and Chief
Executive Officer, Protein Polymer Technologies, Inc.; and George R. Walker,
Vice President- Finance (retired), Esso Europe. All Directors are
elected to annual terms.
During the meeting, stockholders approved an amendment
to the Company's 1992 Stock Option Plan (the "1992 Plan") which
increases the shares reserved for issuances by 500,000 from 1,000,000 to
1,500,000 shares. The purpose of the 1992 Plan is to attract, and
provide incentives to key employees, directors and consultants.
As previously reported, PPTI's private placement of Series
E Convertible Preferred Stock was priced at $100 per share, and 54,000 shares
were sold. Each share can be converted at any time by the holder into common
stock at a price of $1.25 per share. Each share of Preferred Stock
also receives two common stock warrants. Such securities may not be
offered or sold in the United States absent registration with the Securities
and Exchange Commission (SEC), or through an exemption from such registration.
The Company has agreed to use its best efforts to register the underlying
common stock with the SEC within 120 days following closing.
Protein Polymer Technologies, Inc., a San Diego-based
biotechnology company, has developed a protein-based technology platform
that allows the creation of new biomaterials that target multiple applications
in biomedical markets. The biocompatible polymers developed by PPTI
have been genetically engineered to enable cell growth, promote the regeneration
of tissue, bond to synthetic surfaces and resorb into tissue at controlled
rates. Targeted applications include tissue adhesives and sealants,
soft tissue augmentation, tissue engineering and wound healing, and drug
delivery vehicles.
