Adeona to Raise $4 Million in Registered Direct Offering

The Ann Arbor pharma startup Adeona Pharmaceuticals Inc. (Amex: AEN) said Friday that it had executed an agreement for the sale of approximately 2.85 million shares of its common stock at $1.40 per share to two new institutional investors in a registered direct offering for $4 million in gross proceeds.

The investors will also receive warrants to purchase approximately 1.42 million shares of common stock at an exercise price of $2 per share.

The warrants are exercisable upon issuance for a period of 13 months from the closing date.

If exercised for cash, the warrants are expected to generate up to an additional $2.85 million in proceeds to Adeona.

“This financing will allow us to continue developing our zinc-based therapy currently in a clinical study and, if clinical results are positive, will allow us to further our commercialization efforts as a prescription medical food for Alzheimer’s disease,” said Adeona chairman and CEO James S. Kuo, M.D.

The offering is expected to close on or before Feb. 2, subject to customary closing conditions, including approval by the stock exchange. Net proceeds of approximately $3.7 million will be used for general corporate purposes, including conducting operations and advancing our clinical development programs.

Chardan Capital Markets acted as the sole placement agent for this transaction.

The shares and warrants are being offered in a registered direct offering under the Company’s effective shelf registration statement previously filed on Form S-3 with the Securities and Exchange Commission. This offering will be made by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained, when available, from

Adeona is currently developing a prescription medical food for Alzheimer’s disease, and drugs for multiple sclerosis, fibromyalgia, rheumatoid arthritis and age-related macular degeneration.

More at

blog comments powered by Disqus
Best Winter Festivals In Metro Detroit
Thanksgiving Parade Guide

Watch & Listen