Contact Information: Contact: Rachel Levine Director Corporate Development & Communications Cleveland BioLabs, Inc. T: (646) 284-9439 E: rlevine@cbiolabs.com
Cleveland BioLabs Updates Financial Condition Following Completion of Private Placement and Streamlining of Operations
| Source: Cleveland BioLabs, Inc.
BUFFALO, NY--(Marketwire - April 9, 2009) - Cleveland BioLabs, Inc. (NASDAQ : CBLI ) (the
"Company"), in response to a request from the Listing Qualifications Staff
of The NASDAQ Stock Market, is providing an update on its financial
condition following completion of a recent private placement and
operational restructuring.
On March 27, 2009, the Company completed a private placement of its Series
D Preferred Stock and warrants to purchase common stock. This private
placement resulted in net proceeds to the Company of approximately
$4,460,000. Further details regarding this transaction are set forth in
the Current Report on Form 8-K filed by the Company on March 30, 2009.
In addition, during the first quarter of 2009, the Company implemented
workforce reductions and other measures to streamline its operations, which
have reduced the Company's cash burn rate by over 67%. More specifically,
the Company is focusing virtually all of its resources on developing the
defense applications for its radioprotectant drug, CBLB502, which is funded
through several government agencies through grant and contract awards.
These government grants and contracts cover most of the Company's research
and development costs and provide funds for fringe benefits, overhead and
general and administrative expenses. The Company plans to submit proposals
for government contracts and grants over the next two years totaling over
$40 million and seek direct investments to fund other drug development
projects.
Given the restructuring of its operations combined with the proceeds from
the private placement, the Company believes that it is in compliance with
the criteria for continued inclusion on the NASDAQ Capital Market.
About Cleveland BioLabs, Inc.
Cleveland BioLabs, Inc. is a drug discovery and development company
leveraging its proprietary discoveries around programmed cell death to
develop treatments for cancer and protection of normal tissues from
exposure to radiation and other stresses. The Company has strategic
partnerships with the Cleveland Clinic, Roswell Park Cancer Institute,
ChemBridge Corporation and the Armed Forces Radiobiology Research
Institute. To learn more about Cleveland BioLabs, Inc., please visit the
company's website at http://www.cbiolabs.com.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect management's current expectations, as of the date of
this press release, and involve certain risks and uncertainties. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors. Some of
the factors that could cause future results to materially differ from the
recent results or those projected in forward-looking statements include the
"Risk Factors" described in the Company's Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 30, 2009.