CASTLE ROCK, Colo., Dec. 24 /PRNewswire-FirstCall/ -- AspenBio Pharma,
Inc. (Nasdaq: APPY) an emerging bio-pharmaceutical company dedicated to the
development of novel drugs and diagnostics for animals and humans, has
closed a previously announced equity financing with a group of existing and
new investors. $18.2 million in gross proceeds were generated from the sale
of approximately 2.5 million shares of the company's common stock.
Net proceeds to AspenBio totaled approximately $17.1 million and will
be used to fund research and development, product development, FDA approval
related activities, working capital, and general corporate purposes.
Oppenheimer & Co. Inc., acted as placement agent for the transaction.
Richard Donnelly, CEO and president, commented, "We are fortunate to
finalize this offering during a very challenging period in the financial
markets. This funding will support AspenBio's continued product development
and near term FDA approval goals, like approval of our breakthrough blood
screen test for appendicitis. As we recently announced, as a result of our
official pre-IDE response from FDA, we are now following the preferred FDA
510k clearance pathway. The funds will also support a number of other
exciting initiatives in 2008 designed to enhance shareholder value."
The shares of AspenBio's common stock issued in connection with the
private placement have not been registered under the Securities Act of
1933, as amended (the "Securities Act"). Accordingly, these 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.
AspenBio has agreed to file within 30 days after the closing one or
more registration statements covering the resale of the common stock. This
press release shall not constitute an offer to sell or the solicitation of
an offer to buy AspenBio's common stock.
About AspenBio Pharma, Inc.
AspenBio Pharma is an emerging bio-pharmaceutical company dedicated to
the discovery; development, manufacture, and marketing of novel proprietary
products, including those that enhance the reproductive efficiency of
animals and that have large worldwide market potential. The company was
originally formed to produce purified proteins for diagnostic applications
and has become a leading supplier of human hormones to many of the nation's
largest medical diagnostic companies and research institutions. The company
has successfully leveraged this foundational science and technology
expertise to rapidly develop an enviable late-stage pipeline of several
novel reproduction hormone analogs for wide-ranging therapeutic use
initially in bovine and equine species. AspenBio Pharma continues to
advance the development and testing of its two first-generation blood-based
human diagnostic tests designed to rapidly help diagnose or rule out
appendicitis in patients complaining of abdominal pain. For more
information, please visit: www.aspenbiopharma.com.
Forward Looking Statements
This news release includes "forward looking statements" of AspenBio
Pharma, Inc. ("APPY") as defined by the Securities and Exchange Commission
(the "SEC"). All statements, other than statements of historical fact,
included in the press release that address activities, events or
developments that APPY believes or anticipates will or may occur in the
future are forward- looking statements. These statements are based on
certain assumptions made based on experience, expected future developments
and other factors APPY believes are appropriate in the circumstances. Such
statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of APPY. Investors are cautioned that
any such statements are not guarantees of future performance. Actual
results or developments may differ materially from those projected in the
forward-looking statements as a result of many factors, including
statements regarding the private placement, and the ability to successfully
complete the development of, obtain FDA approval for and generate revenues
from the appendicitis test and other new products, execute agreements
required to successfully advance the company's objectives, retain the
scientific management team to advance the products, overcome adverse
changes in market conditions and the regulatory environment, fluctuations
in sales volumes, obtain and enforce intellectual property rights, and
realization of intangible assets. Furthermore, APPY does not intend (and is
not obligated) to update publicly any forward-looking statements. The
contents of this news release should be considered in conjunction with the
warnings and cautionary statements contained in APPY's recent filings with
For more information contact:
AspenBio Pharma, Inc.
Gregory Pusey, Chairman
Liolios Group, Inc.
Scott Liolios or Ron Both
SOURCE AspenBio Pharma, Inc.