Financing Raises Up To an Additional $10 Million in Gross Proceeds
As announced on November 7, 2007, MiddleBrook closed an agreement with Deerfield Management, a healthcare investment fund and one of the Company's largest equity shareholders, raising up to $10 million in cash through the sale of the Company's cephalexin assets, which the Company will have the option to repurchase in the future.
Under the terms of the agreement, the Company received $7.5 million, less a $0.5 million payment to Deerfield, with an additional $2.5 million to become available, if necessary, if and when the Company receives FDA approval of Amoxicillin PULSYS.
The agreement is designed to provide the Company with the financial flexibility to continue its ongoing strategic discussions through the PDUFA date for Amoxicillin PULSYS. The cash provided from the Deerfield agreement also allowed MiddleBrook to repay in full its outstanding loan facility with Merrill Lynch and eliminate the associated interest and principal payments.
Process to Explore Strategic Alternatives Ongoing
As previously announced, MiddleBrook's board of directors authorized the Company to evaluate various strategic alternatives to further enhance shareholder value. Subsequently, MiddleBrook retained Pacific Growth Equities, LLC, an investment bank focused on the life sciences industry, to assist in the evaluation of a full range of strategic alternatives available to the Company.
Strategic alternatives the Company may pursue could include, but are
not limited to, continued execution of the Company's operating plan, the
sale of some or all of the Company's assets, partnering or other
collaboration agreements, or a merger or other strategic transaction. There
can be no assurance that the exploration of strategic alternatives will
result in any agreements or transactions, or that, if completed, any
|SOURCE MiddleBrook Pharmaceuticals, Inc.|
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