SOURCE: AVI BioPharma, Inc.

AVI BioPharma, Inc.

August 25, 2009 09:38 ET

AVI BioPharma Announces Closing of Public Offering of Common Stock and Warrants

BOTHELL, WA--(Marketwire - August 25, 2009) - AVI BioPharma, Inc. (NASDAQ: AVII) today announced the closing of the public offering of 24,295,775 shares of common stock and warrants to purchase an additional 9,718,310 shares of common stock for gross proceeds of approximately $34.5 million. AVI BioPharma sold the shares and warrants for a price of $1.42 per unit (each unit consists of one share of common stock and a warrant to purchase 0.40 of a share of common stock). The shares of common stock and warrants are immediately separable and will be issued separately. The warrants have an exercise price of $1.78 per share of common stock, have a term of five years, and are exercisable starting with the date that is six months from the date of the closing of the offering.

Jefferies & Company, Inc. acted as sole book-running manager in this offering. The co-manager in this offering was JMP Securities LLC.

About AVI BioPharma

AVI BioPharma is focused on the discovery and development of RNA-based drugs utilizing proprietary derivatives of its antisense chemistry (morpholino-modified phosphorodiamidate oligomers or PMOs) that can be applied to a wide range of diseases and genetic disorders through several distinct mechanisms of action.

Forward-Looking Statements Safe Harbor. This press release contains forward-looking statements regarding our plans, expectations, estimates and beliefs. Such statements are "forward-looking statements" for purposes of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Our actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may," and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on current expectations and are not guarantees of future performance. We caution you not to place undue reliance on these statements, which speak only as of the date on which the statement was made. Forward-looking statements in this press release include, but are not necessarily limited to, those relating to the issuance and exercise of the warrants. Forward-looking statements are subject to risks and uncertainties, certain of which are beyond our control. Actual results could differ materially from those anticipated as a result of the factors described in "Risk Factors" in AVI BioPharma's periodic reports filed from time to time with the Securities and Exchange Commission. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. AVI BioPharma does not undertake any obligation to release any revisions to these forward-looking statements publicly to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

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