Valentis completes $5 million share placing

California, USA-based Valentis has completed a private placement of approximately 2.1 million shares of its common stock and warrants to purchase up to 1.1 million additional shares at $2.50 per unit, for aggregate gross proceeds of approximately $5.25 million. The five-year warrants are exercisable at a price of $3.00 each. Valentis issued and sold the shares and warrants to selected institutional and accredited investors, including Biotechnology Value Fund of San Francisco and current shareholders. Canaccord Adams and Griffin Securities acted as financial advisors to Valentis.

As previously announced, Valentis has completed patient dosing on schedule of its VLTS 934 Phase IIb clinical trial in February and expects to receive the results of the trial in July of this year. The company intends to use the proceeds of this financing to advance its poloxamer product for patients suffering with peripheral arterial disease to Phase III clinical testing once the results of the Phase IIb trial are received.

"Based on VLTS 934's prior safety data, the significant improvements from baseline in all efficacy measures in the prior Phase IIa trial and the favorable results observed in the Phase IIb interim analysis, we believe the Phase IIb trial will be successful," commented Benjamin McGraw, chief executive.