BLUE BELL, PA January 2, 2003 - InKine Pharmaceutical Company, Inc. (Nasdaq: INKP) today announced that it raised $3.8 million through a private placement of common stock together with warrants to a group of accredited investors, led by Crestview Capital Funds and InKine's largest shareholder, Ursus Capital Management, LLC. Also among the major investors in the placement was Steven B. Ratoff, a member of the Company's board of directors. Shipley Raidy Capital Partners, LP acted as placement agent for the transaction. The transaction price was approximately a 1% discount to Tuesday's close and included 35% warrant coverage exercisable at $1.85.
Robert F. Apple, Executive Vice President and Chief Financial Officer of InKine commented, "We are pleased with the terms of our private placement and are delighted to have attracted such quality investors to the private placement, which includes current investors, new investors and a board member." Mr. Apple added, "In evaluating financing alternatives and deal size, we always consider the balance of dilution and financial security. We believe that a prudent balance has been achieved with this round of financing. Proceeds from the placement will be used to fund operations until our sales reach operating profitability, which we expect will be during 2003."
Leonard S. Jacob, M.D., Ph.D., Chairman and CEO of InKine said, "With our debt restructured and this infusion of capital, we are financially well positioned. We have great expectations for our sales organization, which we put in place during 2002, and are excited by the Visicol prescription trends that we have generated to date."
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
The shares of common stock and warrants issued in the offering have not been registered under the Securities Act of 1933, as amended, and cannot be offered or sold absent registration or an applicable exemption from registration. The Company intends to file a Registration Statement covering future resale of these securities by the purchasers.
About InKine Pharmaceutical
InKine Pharmaceutical Company, Inc. is a publicly traded biopharmaceutical company focused on the diagnosis and treatment of cancer and autoimmune diseases. The Company's development strategy is to acquire late-stage drug candidates with short time lines to commercialization. The Company's first product, Visicol® is the first and only tablet purgative preparation indicated for bowel cleansing prior to colonoscopy. InKine's second product, IBStat®, is a novel oral hysocyamine spray for the treatment of Irritable Bowel Syndrome (IBS) and spasm of the colon. Additionally, the Company has other development programs such as Colirest, which is in clinical trials for the treatment of Crohn's disease and completed Phase II trials for the treatment of ulcerative colitis. For further information, please visit InKine on their web site http://www.inkine.com.
In addition to historical facts or statement of current condition, this press release may contain forward-looking statements. Forward-looking statements provide InKine's current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, development of potential pharmaceutical products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings projections, and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or other words and terms of similar meaning. InKine's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties such as those set forth in its reports on Form 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, InKine does not intend (and it is not obligated) to update publicly any forward-looking statements. This discussion is permitted by the Private Securities Litigation Reform Act of 1995.