EMERYVILLE, Calif., Feb. 2, 2011 /PRNewswire/ -- Bionovo, Inc. (Nasdaq: BNVI), a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, today announced the closing of its previously announced underwritten public offering of 30,031,200 units at a price per unit of $1.00. Each unit consists of one share of common stock and a warrant to purchase one half of one share of Bionovo common stock at an exercise price of $1.30 per share. The warrants may be exercised at any time after the date of the closing and will expire after five years.
The net proceeds to the company from the sale of units in the offering, after deducting underwriting discounts and commissions and anticipated expenses of the offering, are expected to be $27.8 million. The financing was led by Roths-Invest Asset Management AG, from the Nathan Rothschild Group, Zurich, Switzerland. "Bionovo's approach to drug development is novel and promising," said Jan Sommerhalder, Head of Investments at Roths-Invest. "Menerba, as a targeted botanical drug, has the potential to address a large unmet medical need, providing menopausal women with a proven natural therapy that they have long awaited."
Bionovo expects to use the net proceeds from this offering to advance its lead drug candidate for postmenopausal vasomotor symptoms, Menerba, into Phase 3 clinical trials, and for general corporate purposes.
Dr. Isaac Cohen, chairman and chief executive officer of Bionovo, Inc. commented, "Having positive data to date, regulatory clarity, and now sufficient funding, we can confidently proceed in advancing Menerba into Phase 3 clinical trials. We believe Menerba has the ability to be an important new treatment approach for millions of women suffering from menopausal issues."
Cowen and Company, LLC, acted as the sole bookrunner for
|SOURCE Bionovo, Inc.|
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