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news.Repros Therapeutics, a provider of oral small molecule drugs to treat male and female reproductive disorders, has entered into definitive agreements to sell an aggregate of 2.4 million shares of its common stock at a purchase price of $6.50 per share for an aggregate $15.6 million financing under its previously announced shelf registration statement.
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The company intends to close all of the sales on October 3, 2008. As of September 29, 2008, excluding any proceeds from this offering, Repros had cash and cash equivalents of approximately $9.4 million.
Efficacy Capital and the other institutional purchaser will each receive a purchase option allowing Efficacy Capital to purchase from the company up to $7.5 million of additional shares and the other institutional purchaser to purchase from the company up to $2.5 million of additional shares of the company’s common stock at the greater of the fair market value of the company’s shares at the time of exercise or $7.80 per share.
The company has also announced that Mark Lappe, a managing partner of Efficacy Capital, and John Reed, president and CEO of Burnham Institute for Medical Research are joining the company’s board of directors.
The company plans to use the proceeds from the financing to fund its R&D activities, including the ongoing pivotal Phase III trials of its lead product candidate, Proellex, as a pre-surgical short course treatment of anemia associated with uterine fibroids and as a chronic treatment of uterine fibroids and endometriosis and for working capital and general corporate purposes.