iBio, Inc. Announces Temporary Reduction in Exercise Price of Certain Warrants
NEWARK, Del., Oct. 15, 2013 /PRNewswire/ -- iBio, Inc. (NYSE MKT: IBIO) today announced that it is providing holders of its warrants to purchase common stock issued on January 13, 2012 (the "2012 Warrants") the opportunity to exercise the 2012 Warrants at a reduced exercise price for a limited period.
From October 15, 2013 until 5:00 p.m. on November 12, 2013 (the "Expiration Time"), a holder of 2012 Warrants may exercise part or all of its outstanding 2012 Warrants at a reduced exercise price of $0.40 per share. Subsequent to the Expiration Time, the exercise price of any unexercised 2012 Warrants will revert to the original exercise price of $0.88 per share until the expiration on January 14, 2014 of the 2012 Warrants. The exercise of the 2012 Warrants and the issuance of the common stock underlying the 2012 Warrants is covered by the Company's Registration Statement on Form S-3 (Registration No. 333-175420) (the "Registration Statement"), which is on file with the Securities and Exchange Commission (the "SEC").
Any and all 2012 Warrants properly exercised in accordance with their respective terms prior to the Expiration Time will be accepted by iBio at the reduced exercise price and one share of registered common stock per 2012 Warrant will be issued to the exercising warrant holder. Except for the temporarily reduced exercise price, the terms of the 2012 Warrants remain unchanged.
Materials describing the exercise price reduction and procedures to exercise the 2012 Warrants are being mailed to current holders of record of the 2012 Warrants. iBio encourages each holder to read these materials and the Registration Statement before making any decision to exercise the 2012 Warrants. Neither iBio or its Board of Directors makes any recommendation regarding whether or not any holder should elect to exercise the 2012 Warrants.
iBio further reported that one of its significant stockholders, Eastern Capital Limited, has given the Company notice that it is exercising at the reduced exercise price all of the 2012 Warrants it holds. Pursuant to such exercise, Eastern Capital Limited will acquire 7,500,000 additional shares of the Company's common stock.
About iBio, Inc.
iBio develops and offers product applications of its iBioLaunch™ and iBioModulator™ platforms, providing collaborators full support for turn-key implementation of its technology for both proprietary and biosimilar products. The iBioLaunch platform is a proprietary, transformative technology for development and production of biologics using transient gene expression in unmodified green plants. Advantages over other systems may include: success with proteins difficult or impossible to produce with other methods; broadly applicable to biologics, including therapeutic proteins and vaccines; production time measured in weeks instead of months or more. Additional benefits may include: surge capacity for remedial action against bioterrorism and pandemic disease; product entry that is unconstrained by traditional process patents, and significantly lower capital and operating costs for comparable production. The iBioModulator platform is complementary to the iBioLaunch platform and is designed to significantly improve vaccine products by increasing potency and lengthening duration of effect. The iBioModulator platform can be used with any recombinant expression technology for vaccine development and production. Further information is available at: www.ibioinc.com.
Various statements in this release concerning iBio's future expectations, plans and prospects, including without limitation, iBio's ability to regain compliance with the continued listing standards on a timely basis constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, without limitation, iBio's failure to make progress consistent with the plan approved by the Exchange or iBio's failure to meet other criteria necessary for continued listed on the Exchange, as well as those risks more fully discussed in the "Risk Factors" section of the documents filed by the Company with the SEC. In addition, any forward-looking statements represent iBio's views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. iBio does not assume any obligation to update any forward-looking statements.
SOURCE iBio, Inc.
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