AtheroNova Completes $2.9 Million Private Placement of Common Stock Provides Runway Through Phase I & II Clinical Trials
IRVINE, Calif., Oct. 11, 2012 /PRNewswire/ -- AtheroNova Inc. (OTCBB: AHRO) ("AtheroNova"), a biotech company focused on the research and development of compounds to regress atherosclerotic plaque and to safely improve lipid profiles in humans, today announced that it has closed a sale to accredited investors of an aggregate of 5,850,000 units, which are composed of one share of the Company's common stock and a warrant to purchase 0.5 shares of common stock.
The private placement raised a total of $2,925,000 million, with net proceeds of approximately $2.0 million, after deducting fees and expenses and conversion of bridge loans previously advanced to the Company. The Company expects to use the net proceeds from the offering for working capital and for continued development of the Company's compounds.
"We are pleased to announce the completion of this fund raise as it clearly provides the runway through our upcoming milestones and gives us the capital necessary to move through both Phase I and II clinical trials," stated Chief Executive Officer Thomas W. Gardner. "Our partnership with Maxwell Biotech Group's CardioNova subsidiary for funding of the clinical trials, along with these private placement funds, gives us the capital to move our primary compound to the end of Phase II as well as allowing for development of existing and additional intellectual property on our allowed patent for lipid modulation," Mr. Gardner concluded.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
AtheroNova Inc. is an early stage biotech company focused on discovery, research, development and licensing of novel compounds to reduce or regress atherosclerotic plaque deposits. The Company's focus on compounds to reduce or eliminate atherosclerotic plaque deposits addresses the most lucrative segments of the multi-billion dollar prescription drug market: cardiovascular disease and stroke prevention. www.AtheroNova.com
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward looking statements in this news release include statements regarding the Company's use of the proceeds from the offering. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as significant fluctuations in expenses associated with clinical trials, failure to secure additional financing, the inability to complete regulatory filings with the Food and Drug Administration, the introduction of competing products, or management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and other information that may be detailed from time to time in AtheroNova's filings with the United States Securities and Exchange Commission. AtheroNova undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE AtheroNova Inc.