Warrington, Pa — Discovery Laboratories announced the completion of its public offering to sell an aggregate of 10 million shares of its common stock and warrants to purchase 10,000,000 shares of its common stock under Discovery Labs’ previously filed registration statement that was declared effective by the Securities and Exchange Commission on June 18, 2008. Each share was
issued and sold as a unit, together with a 5-year warrant to purchase 0.50 of a share of common stock and a fifteen-month warrant to
purchase 0.50 of a share of common stock, at a public offering price of $2.35 per unit. The shares and warrants were immediately separable such that no units were issued.
The 5-year warrants are exercisable for a period of five years at an exercise price of $3.20 per share. The 15-month warrants are
exercisable for a period of 15 months at an exercise price of $2.94 per share. As a result of the offering, Discovery Labs has received net
proceeds of approximately $21.6 million, after deducting underwriting discount and other estimated fees and expenses related to the offering.
The net proceeds from the offering will be used primarily for general corporate purposes, including to support Discovery Labs’ research and development activities, which include expenses related to resolving the key remaining Chemistry, Manufacturing and Controls (CMC) issue
that must be addressed to potentially gain US regulatory approval of Surfaxin for the prevention of respiratory distress syndrome (RDS)
in premature infants, including completion of the ongoing comprehensive pre-clinical program, the filing of the Complete Response for Surfaxin and preparation for the potential approval of Surfaxin in the first quarter 2012; and limited investments in Discovery Labs’
development programs for Surfaxin LS, a lyophilized formulation of Surfaxin that is manufactured as a dry powder and reconstituted as a
liquid prior to administration, and Aerosurf(R), Discovery Labs’ KL4 surfactant in aerosolized form based on Discovery Labs’ proprietary
capillary aerosolization technology.
SOURCE: Discovery Labs