RESEARCH TRIANGLE PARK, NC (April 19, 2004) – Incara Pharmaceuticals Corp. announced that it has closed a private placement raising approximately $10.26 million from the sale of more than 41 million shares of its common stock.
Incara is in final preparation of an Investigational New Drug (IND) application to be filed with the FDA for treatment of amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease. Incara intends to use the net proceeds from the financing to support the IND and clinical trials forAEOL 10150.
The company issued to all purchasers five-year warrants to purchase an aggregate number of shares of common stock equal to 40 percent of the total number of shares of common stock sold, at an exercise price of 40 cents per share, the company said.
Investors included Biotechnology Value Fund, Perceptive Life Sciences and Great Point Partners, according to Incara. SCO Securities LLC acted as exclusive placement agent for the transaction.
In connection with the financing, Goodnow Capital, LLC, an investment entity controlled by the Xmark Funds, advanced the remaining $2.5 million of its $5 million convertible debenture and converted the entire debenture into common stock. In addition, as a result of the financing, the warrant toacquire 12.5 million shares previously issued to Goodnow Capital expiredunexercised, according to Incara.
If the Phase 1 clinical trial results are satisfactory, Incara’s clinical plan calls for initiating a Phase 2/3 clinical trial of AEOL 10150 for treatment of ALS as early as the first half of 2005, the company said.
