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Separately, the company announced that it has received the initial$5 million tranche under its previously announced working capital loan, whichincludes an option to acquire a second $5 million tranche in the futuresubject to certain conditions.
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"The recent capital infusion from MidCap Financial and BlueCrest CapitalFinance augments the revenues generated by our Avid manufacturing subsidiaryand our federally funded anti-viral development contract, providing us withadditional resources to advance our ongoing clinical trials in cancer andserious viral diseases," said Steven W. King, president and CEO of Peregrine."The loan funding and NASDAQ's action extending its suspension of the minimumbid price rule give us additional time to generate the clinical data that willhelp us build sustainable value in Peregrine."
As previously announced, in October 2008 Peregrine received a letter fromNASDAQ informing the company that the deadline for regaining compliance withthe minimum bid price rule had been extended until April 27, 2009. Thisdeadline is now extended until July 27, 2009, at which time Peregrine mustevidence a closing bid price of $1.00 or more for a minimum of 10 priorconsecutive trading days.
About Peregrine Pharmaceuticals
Peregrine Pharmaceuticals, Inc. is a biopharmaceutical company with aportfolio of innovative product candidates in clinical trials for thetreatment of cancer and serious viral infections. The company is pursuingthree separate clinical programs in cancer and HCV infection with its leadproduct candidates bavituximab and Cotara(R). Peregrine also has in-housemanufacturing capabilities through its wholly owned subsidiary AvidBioservices, Inc. (http://www.avidbio.com), which provides development andbio-manufacturing services for both Peregrine and outside customers.Additional information about Peregrine can be found athttp://www.peregrineinc.com.
Safe Harbor Statement: Statements in this press release which are notpurely historical, including statements regarding Peregrine Pharmaceuticals'intentions, hopes, beliefs, expectations, representations, projections, plansor predictions of the future are forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. The forward-lookingstatements involve risks and uncertainties including, but not limited to therisk that we will not satisfy the additional conditions to exercise the optionfor the second $5 million tranche and the risk that that the funding andadditional time may not be sufficient to allow the company to generateclinical data that builds sustainable value. It is important to note that thecompany's actual results could differ materially from those in any suchforward-looking statements. Factors that could cause actual results to differmaterially include, but are not limited to, uncertainties associated withcompleting preclinical and clinical trials for our technologies; the earlystage of product development; the significant costs to develop our products asall of our products are currently in development, preclinical studies orclinical trials; obtaining additional financing to support our operations andthe development of our products; obtaining regulatory approval for ourtechnologies; anticipated timing of regulatory filings and the potentialsuccess in gaining regulatory approval and complying with governmentalregulations applicable to our business. Our business could be affected by anumber of other factors, including the risk factors listed from time to timein the company's SEC reports including, but not limited to, the annual reporton Form 10-K for the year ended April 30, 2008 and the quarterly report onForm 10-Q for the quarter ended October 31, 2008. The company cautionsinvestors not to place undue reliance on the forward-looking statementscontained in this press release. Peregrine Pharmaceuticals, Inc. disclaims anyobligation, and does not undertake to update or revise any forward-lookingstatements in this press release.Contacts: GendeLLindheim BioCom Partners Investors Media [email protected] Barbara Lindheim (800) 987-8256 (212) 918-4650
SOURCE Peregrine Pharmaceuticals, Inc.
