CombinatoRx Announces Closing of $48.0 Million Private Placement
BOSTON, Mar 24, 2006 (BUSINESS WIRE) -- CombinatoRx, Incorporated (NASDAQ: CRXX), today
announced that it has closed the previously announced private
placement of approximately 4.68 million shares of common stock at a
price of $10.25 per share for a total purchase price of $48.0 million.
Cowen & Co. LLC served as exclusive placement agent for the
transaction. Pacific Growth Equities, LLC acted as financial advisor.
Participants in the transaction included both new and existing
investors. CombinatoRx has filed a Form 8-K reporting the transaction
with the Securities and Exchange Commission.
"This financing provides us with the flexibility to move forward
expeditiously into larger more resource intensive clinical trials
based on promising human data, as demonstrated with our recently
announced positive phase 2 clinical trial results with CRx-102 in
osteoarthritis, while also providing the ability to advance more early
stage assets into preclinical and clinical development," commented
Alexis Borisy, President and CEO of CombinatoRx.
The shares of common stock offered and to be sold by CombinatoRx
in this private placement have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or state
securities laws and may not be offered or sold in the United States
without registration with the Securities and Exchange Commission or an
applicable exemption from registration requirements. CombinatoRx has
agreed to file a registration statement with the SEC covering resale
of the shares of common stock in the private placement. This notice
shall not constitute an offer to sell or the solicitation of an offer
to buy, nor shall there be any sale of these securities in any state
in which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any
CombinatoRx, Incorporated is a biopharmaceutical company focused
on developing new medicines built from synergistic combinations of
approved drugs, designed to attack disease on multiple fronts.
CombinatoRx applies its proprietary combination drug discovery
technology to identify new combination product candidates in a number
of disease areas, including immuno-inflammatory disease, oncology,
metabolic disease, neurodegenerative disease, and infectious disease.
We are currently developing a portfolio of 6 product candidates
targeting multiple diseases which were discovered by applying our
proprietary screening technology. For further information, please
visit the CombinatoRx website at www.combinatorx.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
concerning CombinatoRx, its potential use of proceeds from the private
placement, its plans for its product candidates and its drug discovery
technology. These forward-looking statements about future
expectations, plans and prospects of CombinatoRx involve significant
risks, uncertainties and assumptions, including risks related to the
unproven nature of the Company's drug discovery technology, the
Company's ability to initiate and successfully complete clinical
trials of its product candidates, potential difficulty and delays in
obtaining regulatory approval for the sale and marketing of its
product candidates, the Company's ability to obtain additional funding
for its research and development and those other risks that can be
found in the "Risk Factors" section of CombinatoRx's Annual Report
Form 10-K on file with the Securities and Exchange Commission and the
other reports that CombinatoRx periodically files with the Securities
and Exchange Commission. No forward-looking statement can be
guaranteed and actual results may differ materially from those
In addition, the forward-looking statements included in this press
release represent CombinatoRx's views as of the date of this release.
CombinatoRx anticipates that subsequent events and developments will
cause its views to change. However, while CombinatoRx may elect to
update these forward-looking statements at some point in the future,
CombinatoRx specifically disclaims any obligation to do so, except as
required by applicable law. These forward-looking statements should
not be relied upon as representing CombinatoRx's views as of any date
subsequent to the date of this release.
(c) 2006 CombinatoRx, Incorporated. All rights reserved.