Point Thera raises nearly $5M in stock sale

Boston,USA-based Point Therapeutics says that it has priced a registered direct offering for the sale of 6,523,776 shares of its common stock at a price of $0.73 per share. The investors in this will also receive five-year warrants, exercisable upon expiration of a lock-up period of six-months, to buy an additional 978,566 shares at an exercise price of $1.00 each.

The company expects the transaction, which will gross some $4.76 million, to close on February 6, subject to the satisfaction of customary closing conditions. The offered shares are registered pursuant to Point's shelf registration statement that was declared effective by the Securities and Exchange Commission on January 12, 2005.

The net proceeds are intended to fund the further clinical development of talabostat and general corporate purposes, including R&D and general and administrative expenses.