Corcept Therapeutics Announces $10.1 Million Private Equity Financing
MENLO PARK, CA--(Marketwire - August 20, 2007) - Corcept Therapeutics Incorporated (NASDAQ: CORT) today announced a private placement of approximately 4.8 million
shares of its common stock at a price of $2.10 per share, pursuant to a
definitive agreement dated as of August 16, 2007 entered into with
accredited investors. The investors are led by Paperboy Ventures LLC, who
is currently the largest shareholder of Corcept. Other investors
participating in this financing round included Sutter Hill Ventures and
Alta Partners, LLP, venture capital firms that are currently significant
shareholders in Corcept, and various entities and individuals related to
these firms, members of the Corcept Board of Directors, Joseph C. Cook,
Jr., David L. Mahoney, G. Leonard Baker and James N. Wilson, and other
accredited investors. The Company completed the initial closing of the
financing on August 17, 2007, selling approximately 3.6 million shares of
its common stock at the purchase price of $2.10 per share. Paperboy
Ventures LLC agreed to purchase their remaining commitment of approximately
1.2 million shares at the purchase price of $2.10 per share, subject to
receipt of stockholder approval in compliance with Nasdaq rules, which
Corcept intends to seek at a special meeting of stockholders it intends to
call as promptly as reasonably practicable. Aggregate proceeds to Corcept
as a result of this financing round will be $10.1 million, assuming
approval by the stockholders of the sale of the additional shares to
Paperboy Ventures LLC.
Corcept intends to use the proceeds of the financing to conduct the next
Phase 3 clinical trial evaluating CORLUX® for the treatment of the
psychotic features of psychotic depression, to conduct studies to extend
and confirm the results of its recent study of CORLUX for the prevention of
antipsychotic-induced weight gain, to continue development of its new
chemical entities and for general corporate purposes, including working
capital.
The securities sold and issued in connection with the private placement
have not been registered under the Securities Act of 1933, as amended, or
any state securities laws and may not be offered or sold in the United
States absent registration with the Securities and Exchange Commission or
an applicable exemption from the registration requirements. As part of the
transaction, Corcept has agreed to file a registration statement with the
Securities and Exchange Commission for purposes of registering the resale
of all of the common stock issued in the private placement within two
business days following the filing of its Form 10-K for its fiscal year
ending December 31, 2007.
This news release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any such
state. Any offering of Corcept Therapeutics Incorporated common stock under
the resale registration statement will be made only by means of a
prospectus.
Statements made in this news release, other than statements of historical
fact, are forward-looking statements. Such statements include, without
limitation, the intended use of the proceeds from the offering, the calling
of a special meeting of stockholders to approve the sale of the additional
shares to Paperboy Ventures LLC and the receipt of the proceeds from such
sale, and the projected date for the filing of a registration statement for
resale of the shares that have been sold. Forward-looking statements are
subject to a number of known and unknown risks and uncertainties that might
cause actual results to differ materially from those expressed or implied
by such statements. These and other risk factors are set forth in the
Company's SEC filings, all of which are available from our website
(www.corcept.com) or from the SEC's website (www.sec.gov). We disclaim any
intention or duty to update any forward-looking statement made in this news
release.
Contact Information: CONTACT:
Joseph K. Belanoff, M.D.
Chief Executive Officer
Corcept Therapeutics
650-327-3270
www.corcept.com