SAN DIEGO--(BUSINESS WIRE)--Sevion Therapeutics, Inc. ("Sevion" or the "Company") (OTCQB:SVON) today announced that on July 27, 2015 the Company closed a private placement with certain accredited investors (the “Offering”) whereby the Company sold units consisting of shares common stock or convertible preferred stock of the Company and warrants to purchase shares of common stock for aggregate gross proceeds of approximately $6,548,963.
Each share of the convertible preferred stock is initially convertible into 10 shares of common stock. The warrants will have an exercise price of $1.50 per share, and will expire 30 months from the closing date, though they are exercisable in whole or in part at any time prior to expiration.
Laidlaw & Company (UK) Ltd. acted as placement agent for the Offering.
Investors in the Offering included certain affiliates of the Company’s Board of Directors (the “Board”), including Opko Health, Inc., of which Dr. Phillip Frost, a member of the Company’s Board, is Chief Executive Officer and Chairman.
The net proceeds of the Offering will be used for working capital, research and development and general corporate purposes.
“This new funding is a great vote of confidence in Sevion’s technology and continuing research efforts,” said Dr. Waksal, Sevion’s Chairman of the Board. “We greatly appreciate the support of the investors and we will endeavor to continually add value to their investment.”
The Company, on July 31, 2015, filed a Form 8-K which described the material terms of the transaction documents.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. These securities have been sold pursuant to an exemption from state and federal securities laws.
About Sevion Therapeutics
Sevion Therapeutics is a biopharmaceutical company building and developing a portfolio of innovative therapeutics, from both internal discovery and acquisition, for the treatment of cancer and immunological diseases. The Company’s product candidates are derived from multiple key proprietary technology platforms: cell-based arrayed antibody discovery, ultralong antibody scaffolds and Chimerasome nanocages. Sevion has leveraged these technologies to build a pipeline of innovative product candidates. For more information, please visit SevionTherapeutics.com.
Certain statements included in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including, but not limited to: the Company’s ability to continue as a going concern; the ability of the Company to consummate additional financings; the development of the Company’s antibody technology; the approval of the Company’s patent applications; the Company’s ability to successfully defend its intellectual property or obtain the necessary licenses at a cost acceptable to the Company, if at all; the successful implementation of the Company’s research and development programs and collaborations; the success of the Company's license agreements; the acceptance by the market of the Company’s products; the timing and success of the Company’s preliminary studies, preclinical research and clinical trials; competition and the timing of projects and trends in future operating performance; and the quotation of the Company’s common stock on an over-the-counter securities market, as well as other factors expressed from time to time in the Company’s periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the Company’s periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.