CHICAGO, Oct. 23 /PRNewswire-FirstCall/ -- Advanced Life Sciences Holdings, Inc. (Nasdaq: ADLS) a biopharmaceutical company engaged in the discovery, development and commercialization of novel drugs in the therapeutic areas of infection, cancer and respiratory diseases, today announced that it closed a debt transaction with Leaders Bank to increase its line of credit from $4 million to $10 million and to extend the date of maturity by 12 months to January 1, 2011. The closing took place in accordance with the loan commitment announced on September 29, 2008.
"We are pleased to complete the debt facility expansion and extension with Leaders Bank," said John L. Flavin, president and chief financial officer of Advanced Life Sciences. "This financing instrument allows the Company to achieve its corporate objectives in a non-dilutive manner."
Under the terms of the amended loan agreement, the loan will mature on January 1, 2011 and contain substantially similar terms and conditions as the existing loan agreement between the Company and Leaders Bank. All borrowings under the increased line will bear interest at a fixed rate of 8.5%, and the loan is secured by substantially all the business assets of the Company, excluding any rights that the Company has under its exclusive license agreement with Abbott Laboratories for cethromycin. The Company has also agreed to issue warrants to Leaders Bank for the purchase of 65,000 shares of its common stock at an exercise price of $1 per share and a term of 5 years.
About Advanced Life Sciences
Advanced Life Sciences is a biopharmaceutical company engaged in the discovery, development and commercialization of novel drugs in the therapeutic areas of infection, cancer and respiratory diseases. The Company's lead candidate, cethromycin, is a novel NDA-stage once-a-day oral antibiotic for the treatment of respiratory tract infections including community acquired pneumonia. For more information, please visit us on the web at http://www.advancedlifesciences.com.
Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, among others, those relating to technology and product development, market acceptance, government regulation and regulatory approval processes, intellectual property rights and litigation, dependence on collaborative relationships, ability to obtain financing, competitive products, industry trends and other risks identified in Advanced Life Sciences' filings with the Securities and Exchange Commission. Advanced Life Sciences undertakes no obligation to update or alter these forward-looking statements as a result of new information, future events or otherwise.
|SOURCE Advanced Life Sciences Holdings, Inc.|
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