TORRANCE, Calif., Jan. 26, 2016 /PRNewswire/ -- Emmaus Life Sciences, Inc. (the Company or Emmaus), a biopharmaceutical company engaged in the discovery, development and commercialization of innovative treatments and therapies for rare and orphan diseases, today announced it has raised approximately $1.7 million in gross proceeds from the sale of common shares to Korea Bio Medical Science Institute (KBMSI) as part of a collaboration agreement between the two companies.
In connection with the private placement, a non-brokered offering, the Company issued a total 377,778 common shares of stock to KBMSI, a Korea-based bio-venture company focused on developing natural product drugs for preventative medicine and chronic incurable diseases. The funds will be used to advance Emmaus' pharmaceutical grade L-glutamine treatment (PGLG), which is currently under clinical development having completed its Phase 3 trial for the management of sickle cell disease (SCD), and for general corporate purposes.
"We thank KBMSI for their investment, joining together with our shareholders to help further advance our sickle cell disease treatment," said Yutaka Niihara, M.D., MPH, Chairman and CEO of Emmaus. "We look forward to collaborating with them on potential commercialization of products in Korea, and continuing to explore other potential opportunities."
About Emmaus Life Sciences
Emmaus Life Sciences is engaged in the discovery, development and commercialization of innovative treatments and therapies for rare diseases. The Company's research on SCD was initiated by Dr. Niihara at the Los Angeles Biomedical Research Institute at Harbor-UCLA Medical Center. Emmaus' SCD therapy has Orphan Drug designation in the U.S. and Europe and Fast Track designation from the FDA. The Company has completed a 230 patient Phase 3 trial. For more information, please visit www.emmauslifesciences.com.
About Sickle Cell Disease
SCD is an inherited blood disorder characterized by the production of an altered form of hemoglobin which polymerizes and becomes fıbrous, causing red blood cells to become rigid and change form so that they appear sickle shaped instead of soft and rounded. Patients with SCD suffer from debilitating episodes of sickle cell crisis, which occur when the rigid, adhesive and inflexible red blood cells occlude blood vessels. Sickle cell crisis causes excruciating pain as a result of insufficient oxygen being delivered to tissue, referred to as tissue ischemia, and inflammation. These events may lead to organ damage, stroke, pulmonary complications, skin ulceration, infection and a variety of other adverse outcomes. SCD is an orphan disease in the U.S. affecting approximately 100,000 patients in the U.S. and millions worldwide with significant unmet medical needs.
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, regarding the research, development and potential commercialization of pharmaceutical products, as well as use of proceeds of the private placement and the impact of the private placement on the Company. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Additional risks and uncertainties are described in reports filed by Emmaus Life Sciences, Inc. with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Emmaus is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
The securities sold by Emmaus in the private placement were not registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), and were sold in reliance upon exemptions from the registration requirements of the US Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or other jurisdiction.
SOURCE Emmaus Life Sciences, Inc.