Santhera raises 15.9M SwFr from Ares Life Sciences

Santhera Pharmaceuticals, a Swiss specialty pharmaceutical company focused on neuromuscular diseases, says that it has raised gross proceeds of 15.9 million Swiss francs ($13.6 million) in a private placement with Ares Life Sciences, an investment vehicle established by the Bertarelli family, which sold its Serono pharmaceutical business to Germany's Merck KGaA for $14.6 billion in January 2007 (Marketletters passim). Santhera sold 370,082 new registered common shares at a price of 43.00 francs per share, representing a premium of 3.7% over the volume-weighted average share price of the last five trading days. The transaction strengthens Santhera's financial flexibility and represents a positive strategic endorsement by a major global biotechnology investor.

The transaction was executed on November 5, after the close of trading on the SIX Swiss Exchange. The capital increase was effected the next day. The new shares, with a par value of 1.00 franc each, will be issued from the company's authorized share capital and will represent 10.6% of the outstanding share capital after the transaction. The new shares will be listed on SIX Swiss Exchange with the first day of trading on November 7. Ares has agreed to a lock-up with regard to the new shares for a period of 12 months following the share issuance.