Ampio Pharma Announces $25 Mln Financing - Quick Facts

(RTTNews) - Ampio Pharmaceuticals Inc. (AMPE) announced a financing transaction that will provide $25 million in gross proceeds to the Company. The financing is a registered direct placement of common stock of the company.

The company said it has entered into a definitive agreement with a limited number of purchasers, mainly institutional investors, in connection with the registered direct placement of common stock of the company, in which the investors have agreed to purchase an aggregate of 4.60 million shares of common stock of the Company at an offering price of $5.50 per share, for a total of $25 million of gross proceeds.

The company noted that it is not using any placement agent for this offering.

The company expects that the closing of the registered direct placement of the common stock of the Company will take place on or about September 30, 2013, subject to satisfaction of customary closing conditions.

The firm stated that it will use the net proceeds from this offering for general corporate purposes, including continuation and completion of Ampion and Optina clinical trials, potential submission of a BLA relating to Ampion and a NDA relating to Optina, executing a long term supply agreement of the Human Serum Albumin source material for Ampion, acquisition and/or leasing of new manufacturing equipment and manufacturing facility for Ampion, and the potential hiring of additional personnel to manufacture Ampion.