NEW YORK, October 25 /PRNewswire-FirstCall/ -- XTL Biopharmaceuticals
Ltd. (NASDAQ: XTLB)(LSE: XTL)(TASE: XTL) today announced that it has
entered into definitive agreements with institutional investors relating to
a private placement of an aggregate of $9.6 million in gross proceeds of
ordinary shares, represented by American Depositary Receipts (ADRs). The
lead investors in the transaction are Perceptive Life Sciences Fund, Quogue
Capital LLC, SCO Capital Partners and Versant Capital.
Ron Bentsur, Chief Executive Officer of XTL, commented, "We are very
pleased to have consummated this financing with high-quality investors in
the biotechnology sector in the U.S. Following this offering, we believe
that we will have sufficient capital to execute our business plan and, more
importantly, to reach what we believe could be a major value-enhancing
milestone - the completion of our on-going randomized, placebo-controlled
Phase IIb trial of Bicifadine in diabetic neuropathic pain."
Pursuant to the securities purchase agreements, the Company will,
following the closing, issue approximately 7.1 million ADRs, representing
approximately 71 million ordinary shares. No warrants were issued in the
transaction. XTL has agreed to register the ordinary shares and list the
ADRs for trading on the Nasdaq Stock Market.
Closing of the transaction is conditional upon, among other things, the
delisting of the Company's ordinary shares from the Official List of the
United Kingdom Listing Authority, scheduled to take place at 8:00 am
(London Time) on October 31, 2007.
Punk, Ziegel & Company, L.P. and Brean Murray, Carret & Co., LLC acted
as placement agents in the transaction.
ABOUT XTL BIOPHARMACEUTICALS LTD.
XTL Biopharmaceuticals Ltd. ("XTL") is engaged in the development of
therapeutics for the treatment of neuropathic pain and hepatitis C. XTL is
developing Bicifadine, a serotonin and norepinephrine reuptake inhibitor,
for the treatment of diabetic neuropathic pain. XTL is also developing
several novel pre-clinical hepatitis C small molecule inhibitors. XTL also
has an active in-licensing and acquisition program designed to identify and
acquire additional drug candidates. XTL is publicly traded on the NASDAQ,
London, and Tel-Aviv Stock Exchanges (NASDAQ: XTLB; LSE: XTL; TASE: XTL).
The offering was made only to accredited investors, as such term is
defined in accordance with the Securities Act of 1933, as amended. The
ordinary shares have not been registered under the Securities Act of 1933,
or any state securities laws. Therefore, they may not be offered or sold in
the United States absent registration under or exemption from the
Securities Act of 1933 and any applicable state securities laws. This
announcement is neither an offer to sell nor a solicitation of an offer to
buy our ordinary shares or warrants to purchase ordinary shares.
Ron Bentsur, Chief Executive Officer
Tel: +1-(845)-267-0707 ext. 225
Some of the statements included in this press release, particularly
those anticipating future financial performance, the delisting of our
ordinary shares from the Official List of the United Kingdom Listing
Authority, the clinical and business prospects for our clinical compound
Bicifadine, growth and operating strategies and similar matters, may be
forward-looking statements that involve a number of risks and
uncertainties. For those statements, we claim the protection of the safe
harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Risk factors that could adversely affect our
operations are identified from time to time in our reports filed with the
Securities and Exchange Commission and the London Stock Exchange, including
our annual report on Form 20-F filed with the Securities and Exchange
Commission on March 23, 2007. Any forward-looking statements set forth in
this press release speak only as of the date of this press release. We do
not intend to update any of these forward-looking statements to reflect
events or circumstances that occur after the date hereof. This press
release and prior releases are available at http://www.xtlbio.com. The
information in our website is not incorporated by reference into this press
release and is included as an inactive textual reference only.
SOURCE XTL Biopharmaceuticals Ltd