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news.US-based biopharmaceutical company Catalyst Pharmaceutical Partners has entered into definitive agreements with institutional investors to sell 1.48 million shares of its common stock at a price of $3 per share in a registered direct common stock offering.
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Net proceeds are expected to be approximately $4.1 million after offering-related fees and expenses. Catalyst intends to use the proceeds from the offering to fund certain required non-clinical studies of CPP-109 for cocaine addiction, complete one or more pilot studies for other indications, which may include a study for binge-eating disorder, and for general corporate purposes.
The transaction is expected to close on or about September 16, 2008, subject to satisfaction of customary closing conditions. Rodman & Renshaw, a subsidiary of Rodman & Renshaw Capital Group acted as the exclusive placement agent for the offering.
Patrick McEnany, president and CEO of Catalyst Pharmaceutical, said: “The offering will allow us to accelerate the non-clinical development program we believe will be required for us to file an new drug application for CPP-109, broaden our pilot study program and provide us with additional financial strength as we move forward with our business activities including ongoing discussions with potential strategic partners.”