Contact Information: CONTACT: Caroline Loewy Chief Financial Officer Corcept Therapeutics 650-688-8783 www.corcept.com
Corcept Therapeutics Announces Pricing of Private Placement Cash Sufficient to Fund Company Through Corlux NDA Submission
| Source: Corcept Therapeutics
MENLO PARK, CA--(Marketwire - October 13, 2009) - Corcept Therapeutics Incorporated (NASDAQ : CORT ), a pharmaceutical company engaged in the development of drugs for the
treatment of severe metabolic and psychiatric disorders, today announced
that it has entered into a definitive agreement with certain existing
investors, including Longitude Capital Management, Sutter Hill Ventures and
Alta Partners, and new investors including Federated Kaufmann Funds to
raise approximately $18 million in gross proceeds in a private placement
through the sale of shares of its common stock and warrants.
Corcept intends to use the net proceeds from the offering to fund the
completion of enrollment in its Phase 3 trial of CORLUX© for Cushing's
Syndrome and the submission of its Cushing's Syndrome NDA, as well as for
general corporate purposes, including working capital.
Corcept has entered into a securities purchase agreement pursuant to which
it has agreed to sell an aggregate of up to approximately 12.6 million
units for $1.43 per unit. The units purchased will consist of one share of
the Company's common stock and one warrant to purchase 0.35 shares of the
Company's common stock at a per share exercise price of $1.66. Units will
not be issued or certificated. The shares of common stock and the warrants
are immediately separable and will be issued separately, but will be
purchased together in this offering. The warrants will have a three year
term. The closing of the transaction is expected to occur on or about
October 16, 2009, subject to the satisfaction of specified closing
conditions. Thomas Weisel Partners LLC acted as exclusive placement agent
for the offering.
The shares and warrants sold in the private placement and the shares
issuable upon the exercise of the related warrants have not been registered
under the Securities Act of 1933, as amended, or state securities laws, and
may not be offered or sold in the United States without being registered
with the Securities and Exchange Commission ("SEC") or through an
applicable exemption from SEC registration requirements. The shares and
warrants were offered and sold only to accredited investors. Corcept has
agreed to file a registration statement with the SEC covering the resale of
the shares issued in the private placement and the shares issuable upon the
exercise of the warrants.
This news release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any such
state. Any offering of Corcept Therapeutics Incorporated common stock under
the resale registration statement will be made only by means of a
prospectus.
Statements made in this news release, other than statements of historical
fact, are forward-looking statements, including, for example, statements
relating to Corcept's clinical development programs, its spending plans,
including the intended use of the proceeds from the financing and for the
timing of the closing of the financing. Forward-looking statements are
subject to a number of known and unknown risks and uncertainties that might
cause actual results to differ materially from those expressed or implied
by such statements. For example, there can be no assurances with respect to
the commencement, pace of enrollment, cost, rate of spending, completion or
success of clinical trials; there can be no assurance with respect to the
consummation of financing activities; financial projections may not be
accurate; there can be no assurances that Corcept will pursue further
activities with respect to the clinical development of CORLUX. These and
other risk factors are set forth in the Company's SEC filings, all of which
are available from our website (www.corcept.com) or from the SEC's website
(www.sec.gov). We disclaim any intention or duty to update any
forward-looking statement made in this news release.