Calif., Jan. 26 /PRNewswire-FirstCall/ — Aerogen, Inc. (Nasdaq: AEGN) today
announced that is has closed a convertible debt financing, resulting in gross
proceeds to Aerogen of $505,133. This financing has been provided to Aerogen by
the Carpenter Family Trust, the trustees of which are Aerogen’s Chairman and
Chief Executive Officer, Dr. Jane Shaw and her husband Peter Carpenter.
terms of the investment, Aerogen has issued a secured convertible debenture
with a face amount of $500,000 that bears interest at a rate of 10% per annum,
and is due March 1, 2004. The conversion price of the debenture is $3.044,
which is equal to the five-day trailing average of the daily closing bid prices
of Aerogen’s common stock. If converted, the debenture would result in the
issuance of approximately 164,258 shares of common stock. The Trust has also
purchased a four-year warrant, exercisable on or after July 26, 2004, to
purchase up to approximately 82,129 shares of common stock at an exercise price
of $3.044 per share.
with this transaction, SF Capital and the Company have amended the secured
convertible debentures previously issued to SF Capital to permit this
additional indebtedness, and to extend the maturity of SF Capital’s September
9, 2003 debenture to March 1, 2004.
also announced today that it had placed nine employees on furlough in order to
reduce short-term expenditures.
To the extent
any statements made in this release relate to information that is not
historical, these statements are necessarily forward-looking. As such, they are
subject to the occurrence of many events outside of the Company’s control and
other uncertainties, and are subject to various risk factors that could cause
the Company’s actual results to differ materially from those expressed in any
forward-looking statement. The risk factors include, without limitation, the
need for additional funding, the inherent risks of product development,
clinical outcomes, regulatory risks and risks related to proprietary rights,
market acceptance and competition, and are described in the Company’s reports
and other filings with the U.S. Securities and Exchange Commission, including
its Form 10-Q for the quarter ended September 30, 2003, filed November 14,
2003. Aerogen does not undertake any obligation to update forward-looking