SOURCE: NexMed, Inc.

December 21, 2006 08:30 ET

NexMed Receives Cash Infusion of $8.65 Million

EAST WINDSOR, NJ -- (MARKET WIRE) -- December 21, 2006 -- NexMed, Inc. (NASDAQ: NEXM), a developer of innovative transdermal treatments based on its proprietary NexACT® drug delivery technology, announced today it has raised $8.65 million from a private placement of its securities to Southpoint Capital Advisors and RA Capital Management.

NexMed agreed to sell 13,317,000 shares of its common stock at $0.6501 per share. The investors will also receive five-year warrants to purchase 5,326,800 shares of common stock at an exercise price of $0.79 per share. The proceeds of the financing are expected to be used for general corporate purposes and for the Company's product development programs.

The securities sold in this private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements. NexMed has agreed to file a resale registration statement on Form S-3 within 30 days after the closing of the transaction for purposes of registering the resale of the shares of common stock being acquired by the two investors.

About NexMed, Inc.

NexMed, Inc. is an emerging drug developer that is leveraging its proprietary NexACT skin permeation, drug delivery technology to develop a significant pipeline of innovative pharmaceutical products to address significant unmet medical needs. The Company is also exploring opportunities with various pharmaceutical companies to incorporate NexACT into their existing drugs as a means of developing new patient-friendly transdermal products and extending patent lifespans and brand equity. NexMed currently has a host of medicines in development, such as treatments for nail fungus, sexual disorders and more, all based on its proprietary NexACT drug delivery technology.

Contact Information

  • Company Contact:
    Deborah Carty
    NexMed, Inc.
    (609) 371-8123, ext: 159
    Email Contact

    Investor Relations:
    Paula Schwartz
    Rx Communications Group, LLC
    (917) 322-2568
    Email Contact