OXiGENE Inc. Secures $40 Million Committed Equity Financing Facility
WALTHAM, Mass.--(BUSINESS WIRE)--Feb. 20, 2008--Regulatory News:
OXiGENE, Inc. (NASDAQ: OXGN) (XSSE: OXGN), a clinical-stage,
biopharmaceutical company developing novel therapeutics to treat
cancer and eye diseases, announced today that it has entered into a
Committed Equity Financing Facility (CEFF) with Kingsbridge Capital
Limited, a private investment group, in which Kingsbridge has
committed to provide up to $40 million of capital during the next
three years through the purchase of newly-issued shares of OXiGENE's
common stock. Under the terms of the agreement, OXiGENE will determine
the exact timing and amount of any CEFF financings, subject to certain
conditions."We're pleased to establish a relationship with Kingsbridge, a
leader in the CEFF field, which has established similar facilities
with a number of clinical-stage biopharmaceutical companies,"
commented Jim Murphy, OXiGENE's Vice President and Chief Financial
Officer. "We expect the CEFF to enhance OXiGENE's financial
flexibility as we work to advance our drug development programs and
business development initiatives".
Details of OXiGENE's CEFF with Kingsbridge are as follows:
-- OXiGENE can access up to $40 million from Kingsbridge in
exchange for newly-issued shares of OXiGENE's common stock.
Kingsbridge is committed under the CEFF to purchase the lesser
of approximately 5,708,000 shares of common stock or $40
million of common stock from OXiGENE. OXiGENE may access the
capital for up to three years after the Securities and
Exchange Commission declares effective the registration
statement to be filed by OXiGENE covering the resale of the
shares of common stock issuable to Kingsbridge in connection
with the CEFF and the shares of common stock underlying the
warrant issued to Kingsbridge discussed below.
-- OXiGENE may access capital under the CEFF in tranches of
either (a) 2% of OXiGENE's market capitalization at the time
of the draw down or (b) the lesser of (i) 3.5% of OXiGENE's
market capitalization at the time of the draw down and (ii) an
alternative draw down amount based on the product of (A) the
average trading volume of the 30-day trading period preceding
the draw down excluding the five highest and five lowest
trading days during such period, (B) the closing price on the
trading day prior to the notice of draw down, (C) the number
of trading days during the draw down period and (D) 50%,
subject to certain conditions. Each tranche will be issued and
priced over an eight-day pricing period. Kingsbridge will
purchase shares of common stock pursuant to the CEFF at
discounts ranging from 5% to 12% depending on the average
market price of the common stock during the eight-day pricing
period, provided that the minimum acceptable purchase price
for any shares to be issued to Kingsbridge during the
eight-day period is determined by the higher of $1.25 or 85%
of OXiGENE's common stock closing price the day before the
commencement of each draw down.
-- Throughout the term of the agreement, Kingsbridge is
restricted from engaging in any shorting transaction of
OXiGENE's common stock.
-- OXiGENE is not obligated to utilize any of the $40 million
available under the CEFF and there are no minimum commitments
or minimum use penalties. The CEFF agreement does not contain
any restrictions on OXiGENE's operating activities, automatic
pricing resets or minimum market volume restrictions.
-- The agreement does not prohibit OXiGENE from conducting
additional debt or equity financing, other than financings
similar to the CEFF.
-- In connection with the CEFF, OXiGENE issued a warrant to
Kingsbridge to purchase up to 250,000 shares of common stock
at an exercise price of $2.74 per share which represents a 25%
premium over the average of the closing prices of OXiGENE's
common stock during the 5 trading days preceding the signing
of the agreement. The warrant will become exercisable six
months from the date of the agreement and will remain
exercisable, subject to certain exceptions, for a period of
five years thereafter.
About OXiGENE
OXiGENE is a clinical-stage biopharmaceutical company developing
novel therapeutics to treat cancer and eye diseases. The company's
major focus is developing vascular disrupting agents (VDAs) that
selectively disrupt abnormal blood vessels associated with solid tumor
progression and visual impairment. OXiGENE is dedicated to leveraging
its intellectual property and therapeutic development expertise to
bring life-extending and -enhancing medicines to patients.
Safe Harbor Statement
This news release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Any or all of the forward-looking statements in this press release may
turn out to be wrong. Forward-looking statements can be affected by
inaccurate assumptions OXiGENE might make, or by known or unknown
risks and uncertainties, including, but not limited to, the timing and
results of trials involving ZYBRESTAT or other assets . Additional
information concerning factors that could cause actual results to
materially differ from those in the forward-looking statements is
contained in OXiGENE's reports to the Securities and Exchange
Commission, including OXiGENE's reports on Form 10-K, 10-Q and 8-K.
However, OXiGENE undertakes no obligation to publicly update
forward-looking statements, whether because of new information, future
events or otherwise. Please refer to our Annual Report on Form 10-K
for the fiscal year ended December 31, 2006.
OXiGENE, Inc.
Michelle Edwards, 415-315-9413
Investor Relations
medwards@oxigene.com
OXiGENE Inc. Secures $40 Million Committed Equity Financing Facility
| Source: Oxigene, Inc.
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