Panacea Biotec to Make a $13.1 Million Strategic Investment in PharmAthene
ANNAPOLIS, Md., Sept. 30 /PRNewswire-FirstCall/ -- PharmAthene, Inc. (Amex: PIP), a biodefense company developing medical countermeasures against biological and chemical threats, announced today that it has entered into a strategic alliance with Panacea Biotec Ltd., that includes a strategic equity investment in PharmAthene by Panacea Biotec, through its subsidiary, Kelisia Holdings Ltd., of $13.1 million in exchange for the sale of common stock and warrants.
Under the financing, Panacea Biotec's subsidiary has agreed to purchase approximately 3.73 million shares of PharmAthene common stock at a negotiated price of $3.50 per share, which represents a 90% premium above the closing price of PharmAthene's common stock on September 29, 2008. Upon the closing, Panacea Biotec's subsidiary will also receive 12-month warrants to purchase up to approximately 2.75 million additional shares of PharmAthene common stock at an exercise price of $5.10 per share. The transaction is expected to close on or before October 20, 2008.
"Our agreement with Panacea Biotec is part of a comprehensive strategy
to strengthen our balance sheet and forge a strategic alliance with a
globally recognized biopharmaceutical company," said David P. Wright,
President and Chief Executive Officer of PharmAthene. "We were attracted to
Panacea Biotec because it has distinguished itself as an international
health management company that is actively conducting research and
development of novel chemical and biological pharmaceutical formulations
and has developed a diverse proprietary product portfolio encompassing
pediatric vaccines and therapeutics for emerging infectious diseases and
|SOURCE PharmAthene, Inc.|
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