Profectus BioSciences, Inc. Announces Additional $3 Million Private Placement of Convertible Notes and Warrants

BALTIMORE--(BUSINESS WIRE)--Profectus BioSciences, Inc., a biotechnology company that develops preventative and therapeutic technologies to reduce the morbidity and mortality caused by viral diseases, today announced that it has completed an additional $3 million private note and warrant placement with the sale of securities to private investors led by Cross Atlantic Capital Partners and Stewart Greenebaum.

Under the terms of the financing, the Company received $1,500,000 immediately and can draw the remaining amounts at its option not later than September 30, 2007.

The company anticipates using the proceeds from the financing to forward work on immune modulation technologies to enhance the clinical efficacy of existing drugs and formulate new viral entry inhibitors. The company will also use the funds to begin investigation of other enabling technologies that support the production of effective antiviral vaccines and therapeutics, and to negotiate and generate revenue from various licensing agreements.

Since commencing operations, Profectus licensed intellectual property of its founding scientists at the Institute of Human Virology from the University of Maryland Biotechnology Institute and the University of Maryland Baltimore. The company also entered into option agreements to commercialize its intellectual property with two global pharmaceutical companies for human and animal health. This private placement builds upon license fees, research support, milestone payments, grant proceeds, and earlier private placements received since its inception.

Profectus BioSciences, Inc. began operations in early 2005 to develop and commercialize technologies to reduce the morbidity and mortality caused by human viral diseases, including the human immunodeficiency virus (HIV), the causative agent of AIDS. The Company’s name, Profectus, translated from its Latin roots, means “to advance or improve,” thus capturing its approach to adding value to existing products or products under development from the leading global pharmaceutical companies. The company applies its specific scientific expertise to help commercialize new or repositioned drugs used for human and animal health.