PROLOR Biotech Announces $10 Million Preferred Stock Line From Members of The F...(ement does not include any warrants to i...)

"This new infusion of equity capital comes at a critical time for PROLOR, as we are approaching significant milestones in the development of our long-acting human growth hormone candidate that has the potential to significantly decrease the frequency of administration of this important injectable drug," said Shai Novik, president of PROLOR. "We believe that the $2 million in preferred stock financing from members of The Frost Group, along with the option to obtain up to an additional $8 million at our sole discretion, is a positive development for the company. It provides immediate capital to advance our development programs into clinical trials, while also enabling us to eliminate our existing $10 million line of credit, which required monthly interest payments and the inclusion of the debt as a liability on our balance sheet."

The Series B investors may convert issued Series B preferred stock to common stock at any time. At conversion, each share of preferred stock will convert into two shares of common stock. The company may force conversion of issued Series B preferred stock to common stock under certain conditions.

About The Frost Group

The Frost Group, LLC, is a private investment firm based in Miami. The Frost Group is led by Dr. Phillip Frost, and includes Jane Hsiao, Ph.D., Rao Uppaluri, Ph.D., and Mr. Rubin, a team that has been together in various capacities for over 23 years. Since its formation in October 2006, The Frost Group has invested over $160 million in various companies and technologies in the United States and abroad. These investments, which range from small minority investments to controlling majority stakes, span a wide range of innovative and technology platforms in the areas of pharmaceuticals, diagnostic devices, medical devices, development education and entertainment for children, telecommunications, s
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