SCLOR Pharma to raise $11.8M in stock offer

Washington state, USA-based SCOLR Pharma says it has obtained commitments to purchase shares of its common stock in a registered direct offering for gross proceeds of approximately $11.8 million. Under the terms of the transaction, SCOLR expects to sell approximately 2.37 million shares at $5.00 each to a group of institutional investors. The closing of the offering is expected to take place on April 20, 2006, subject to the satisfaction of customary closing conditions.

The company believes that the net proceeds from this offering, together with its cash and cash equivalents of $10.9 million and $2.4 million in short-term investments as of December 31, 2005, is sufficient capital to fund its planned operations through the end of 2007.