4th Jan 2006 07:03
GW Pharmaceuticals PLC04 January 2006 For Immediate Release 4 January 2006 GW Pharmaceuticals plc ("GW" or "the Company") GW Raises $15m (£8.6m) in US Placing GW Pharmaceuticals plc (AiM:GWP) today announces that it has signed an agreementwith a United States-based institutional investor to raise $15 million (£8.6million) before expenses through a placing for cash of 6,165,978 new GW ordinaryshares at 139.61 pence per share. The new shares represent approximately 5.4 per cent of the Company's issuedshare capital prior to the placing and were approved for issuance byshareholders at the Company's Annual General Meeting on 22 March 2005. The newshares were placed at a 5% discount to the volume weighted average price on 3January 2006. In addition, GW has issued to the investor warrants to subscribefor 1,849,794 GW shares, 924,897 of which have an exercise price of £1.61 pershare, and the remaining 924,897 have an exercise price of £1.745 per share. Thewarrants can be exercised at any time prior to the fifth anniversary of theirissue. In a separate statement also issued today, GW has announced that the US Food andDrug Administration (FDA) has accepted its Investigational New Drug (IND)Application for Sativex(R) for the treatment of pain in patients with advancedcancer that has not been adequately relieved by opioid medications. As part ofthis IND, the FDA has agreed that GW may proceed directly into pivotal Phase IIIclinical trials in the US in this very seriously ill patient population. The gross proceeds of the placing of £8.6 million (approximately £8.1 millionnet of expenses) will provide additional balance sheet resources to further theCompany's R&D and clinical trial programmes. In particular, the additionalfinancing will provide GW with the resources to start making commitments to theUS development of Sativex. In parallel, GW shall seek a US licensing partner forSativex with a view to such partner taking responsibility for the principalcosts of US development. Dr Geoffrey Guy, Executive Chairman of GW, said: "The announcement today of aPhase III IND in the US together with this US-led financing marks a furtherimportant step forward for the Company's global ambitions. GW has been planningcarefully its approach to the US market for a number of years and hasestablished a group of prominent US advisers and experts to assist its efforts.This financing will permit GW to start the US development of Sativex whilst thecompany seeks a US licensing partner. The placing also widens GW's institutionalshareholder base to include an experienced US based biopharmaceutical investor."Application will be made today for the new shares to be admitted to AiM, amarket of the London Stock Exchange ("Admission"). The placing will be completedupon Admission, which is expected to become effective on 11 January 2006. Whenissued, the new shares will rank pari passu in all respects with the Company'sexisting ordinary shares. Following the placing, GW will have a total of120,049,335 ordinary shares in issue. Seven Hills Partners LLC acted as exclusive placement agent to GW for thisfinancing. As part of the placement fee, GW has issued to Seven Hills warrantsto subscribe for 77,075 GW shares at an exercise price of £1.3961 per share. - Ends - Enquiries: GW Pharmaceuticals plc + 44 (0)1980 557000 Dr Geoffrey Guy, Executive ChairmanJustin Gover, Managing DirectorMark Rogerson, Press and PR + 44 (0)7885 638810 Weber Shandwick Square Mile + 44 (0)20 7067 0700Kevin Smith, Yvonne Alexander, Rachel Taylor Note To Editors About GW Pharmaceuticals plc GW was founded in 1998 and listed on the AiM, a market of the London StockExchange in June 2001. Operating under license from the UK Home Office, thecompany is developing cannabis-derived pharmaceutical products for patients withmultiple sclerosis, spinal cord injury, rheumatoid arthritis, neuropathic pain,cancer pain and other severe medical conditions. GW maintains control over allaspects of the development process: botanical research, cultivation, extraction,formulation and medication delivery. GW has assembled a team of over 100 scientists with extensive experience indeveloping both plant-based prescription pharmaceutical products and medicinescontaining controlled substances. GW is dedicated to developing treatmentoptions that alleviate pain symptoms in patients who suffer from seriousailments. For further information, please visit the Company's website: www.gwpharm.com This news release may contain forward-looking statements that reflect theCompany's current expectations regarding future events, including developmentand regulatory clearance of the Company's products. Forward-looking statementsinvolve risks and uncertainties. Actual events could differ materially fromthose projected herein and depend on a number of factors, including (interalia), the success of the Company's research strategies, the applicability ofthe discoveries made therein, the successful and timely completion ofuncertainties related to the regulatory process, and the acceptance of Sativexand other products by consumer and medical professionals. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GWP.L