HOUSTON, Aug. 20, 2007 (PRIME NEWSWIRE) -- Encysive Pharmaceuticals Inc. (Nasdaq:ENCY) today announced that it has entered into definitive agreements with institutional accredited investors to purchase approximately 7.7 million shares of the Company's common stock in a registered offering for gross proceeds of approximately $15 million before fees and expenses. The Company will also issue five-year warrants to purchase an aggregate of approximately 7.7 million additional shares of the Company's common stock at an exercise price of $1.95 per share. The closing of the transaction is expected to take place on or before August 24, 2007, subject to the satisfaction of customary closing conditions.
The shares and warrants are being sold pursuant to the Company's effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission. Rodman & Renshaw, LLC, a wholly owned subsidiary of Enthrust Financial Services, Inc (OTCBB:EFSV), served as placement agent for the offering.
The Company intends to use the net proceeds of the offering for working capital and general corporate purposes, including the Company's activities related to the commercialization of the Company's oral endothelin receptor antagonist, Thelin(tm) (sitaxsentan sodium) in Europe, Canada and Australia.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described above, nor shall there be any sale of such securities in any state in which such offer, solicitation or sale should be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from Rodman & Renshaw, LLC, 1270 Avenue of the Americas, 16th Floor, New York, NY 10017, Fax: 212-356-0536.
About Encysive Pharmaceuticals
Encysive Pharmaceuticals Inc. is a global biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. Our research and development programs are predominantly focused on the treatment and prevention of interrelated diseases of the vascular endothelium and exploit our expertise in the area of the intravascular inflammatory process, referred to as the inflammatory cascade, and vascular diseases. To learn more about Encysive Pharmaceuticals please visit our web site: www.encysive.com.
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This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are: our estimate of the sufficiency of our existing capital resources; our ability to raise additional capital to fund cash requirements for future operations; the availability of sufficient funds to commercialize Thelin(tm) in the E.U., Canada and Australia; market acceptance of Thelin(tm) in the E.U., Canada and Australia and the actual rate of acceptance; the impact of reimbursement policies and governmental regulation of prices for Thelin(tm) in the E.U., Canada and Australia; our inability to predict revenues from Thelin(tm) and our expense levels in 2007 and beyond; our ability to retain key personnel, as well as more specific risks, trends and uncertainties facing Encysive such as those set forth in its reports on Forms 8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks, trends and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore you should not rely on any such forward-looking statements. Furthermore, Encysive undertakes no duty to update or revise these forward-looking statements. The Private Securities Litigation Reform Act of 1995 permits this discussion.