EntreMed raises $30M

EntreMed, a Maryland, USA-based clinical-stage pharmaceutical company developing therapeutics for the treatment of cancer and inflammatory diseases, says that it has entered into definitive agreements with institutional investors for the private placement of units consisting of shares of common stock and warrants at a purchase price of $2.3125 per unit, for a total gross financing of around $30.0 million.

In connection with the placement, the company will issue approximately 13 million shares and warrants to purchase up to 6.5 million additional shares at an exercise price of $2.50 per share. The warrants will not become exercisable until six months after the closing.

Participants in the financing include biotechnology firm Celgene. EntreMed will use the proceeds to further clinical development of its lead oncology drug candidates, Panzem NCD (2-methoxyestradiol), MKC-1 and ENMD-1198.