CASTLE ROCK, Colo., Dec. 24 /PRNewswire-FirstCall/ -- AspenBio Pharma, Inc. (Nasdaq: APPY) an emerging bio-pharmaceutical company dedicated to the development of novel drugs and diagnostics for animals and humans, has closed a previously announced equity financing with a group of existing and new investors. $18.2 million in gross proceeds were generated from the sale of approximately 2.5 million shares of the company's common stock.
Net proceeds to AspenBio totaled approximately $17.1 million and will be used to fund research and development, product development, FDA approval related activities, working capital, and general corporate purposes. Oppenheimer & Co. Inc., acted as placement agent for the transaction.
Richard Donnelly, CEO and president, commented, "We are fortunate to finalize this offering during a very challenging period in the financial markets. This funding will support AspenBio's continued product development and near term FDA approval goals, like approval of our breakthrough blood screen test for appendicitis. As we recently announced, as a result of our official pre-IDE response from FDA, we are now following the preferred FDA 510k clearance pathway. The funds will also support a number of other exciting initiatives in 2008 designed to enhance shareholder value."
The shares of AspenBio's common stock issued in connection with the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"). Accordingly, these securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
AspenBio has agreed to file within 30 d
|SOURCE AspenBio Pharma, Inc.|
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