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Nile Therapeutics, Inc. Completes $2.5 Million Private Placement
Date:6/23/2011

SAN MATEO, Calif., June 23, 2011 /PRNewswire/ -- Nile Therapeutics, Inc. (OTCQB: NLTX), a biopharmaceutical company that develops novel therapeutics for heart failure patients, today announced that it has completed its previously announced private placement of units of its securities consisting of an aggregate of 5,000,000 shares of common stock and five-year warrants to purchase an additional 2,500,000 shares of common stock for aggregate gross proceeds of $2.5 million.  

The financing was led by Stonepine Capital, LP. Riverbank Capital Securities, Inc. and Ladenburg Thalmann & Co Inc., each FINRA member broker-dealers, served as placement agents for the transaction.

The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and were sold pursuant to Regulation D of the Securities Act.  The securities may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements. Nile has agreed to file a registration statement covering the resale of the shares issued in the private placement, including the shares issuable upon exercise of the warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Nile Therapeutics

Nile Therapeutics, Inc. is a biopharmaceutical company that develops innovative products for the treatment of cardiovascular disease and other areas of unmet medical needs. Nile is initially focusing its efforts on developing its lead compound, cenderitide, a novel rationally designed chimeric peptide in clinical studies for the treatment
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SOURCE Nile Therapeutics, Inc.
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