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ARCA biopharma Announces Closing of $20 Million Equity Offering

  ARCA biopharma Announces Closing of $20 Million Equity Offering

Business Wire

BROOMFIELD, Colo. -- June 5, 2013

ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company developing
genetically-targeted therapies for cardiovascular diseases, today announced
the closing of the previously announced public offering of the Company’s
Series A Convertible Preferred Stock (the “Preferred Stock”) and warrants to
purchase shares of the Company’s common stock. ARCA issued to investors
125,000 shares of Preferred Stock together with warrants to purchase 6.25
million shares of common stock. Each share of Preferred Stock is convertible
into 100 shares of common stock. Each investor received a warrant to purchase
50 shares of common stock for each share of Preferred Stock purchased. ARCA
received approximately $18 million in net proceeds from the stock offering.
Dawson James Securities, Inc. acted as sole placement agent for the offering.

The Company intends to use the net proceeds of the offering to fund the Phase
2b portion of the GENETIC-AF trial, and for working capital and general
corporate purposes. The GENETIC-AF trial will evaluate Gencaro as a potential
treatment for the prevention of atrial fibrillation.

Each share of Preferred Stock and its related warrants was sold at a purchase
price of $160. The Preferred Stock is convertible into shares of common stock
at any time at the option of the holder, provided that the holder will be
prohibited from converting such Preferred Stock into shares of common stock
if, as a result of such conversion, the holder, together with its affiliates,
would beneficially own more than 9.99% of the total number of shares of common
stock then issued and outstanding. The shares of Preferred Stock have no
voting rights, except as required by law and no preferential dividends or
redemption rights. The warrants expire in 5 years, have an exercise price of
$1.60 per share and are immediately exercisable, provided that the holder will
be prohibited from exercising the warrants for shares of common stock if, as a
result of such exercise, the holder, together with its affiliates, would
beneficially own more than 9.99% of the total number of shares of common stock
then issued and outstanding. ARCA Director and Chief Executive Officer
Dr.Michael Bristow purchased 781 shares of Preferred Stock for a purchase
price of $124,960 and received warrants to purchase 39,050 shares of common
stock.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy these securities, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities
laws of any such jurisdiction.

The Company has an effective registration statement (including a prospectus)
on file with the Securities and Exchange Commission (SEC) pursuant to which
the shares and warrants were offered.

About ARCA biopharma

ARCA biopharma is dedicated to developing genetically-targeted therapies for
cardiovascular diseases. The Company's lead product candidate, Gencaro^TM
(bucindolol hydrochloride), is an investigational, pharmacologically unique
beta-blocker and mild vasodilator being developed for atrial fibrillation.
ARCA has identified common genetic variations that it believes predict
individual patient response to Gencaro, giving it the potential to be the
first genetically-targeted atrial fibrillation prevention treatment. For more
information please visit www.arcabiopharma.com.

Safe Harbor Statement

This press release contains "forward-looking statements" for purposes of the
safe harbor provided by the Private Securities Litigation Reform Act of 1995.
These statements include, but are not limited to, statements regarding the
potential for genetic variations to predict individual patient response to
Gencaro, and the potential for Gencaro to be the first genetically-targeted
atrial fibrillation prevention treatment. Such statements are based on
management's current expectations and involve risks and uncertainties. Actual
results and performance could differ materially from those projected in the
forward-looking statements as a result of many factors, including, without
limitation, the risks and uncertainties associated with: the Company's
financial resources and whether they will be sufficient to meet the Company's
business objectives and operational requirements; results of earlier clinical
trials may not be confirmed in future trials, the protection and market
exclusivity provided by the Company’s intellectual property; risks related to
the drug discovery and the regulatory approval process; and, the impact of
competitive products and technological changes. These and other factors are
identified and described in more detail in ARCA’s filings with the SEC,
including without limitation the Company’s annual report on Form 10-K for the
year ended December 31, 2012, the Company’s Registration Statement on Form S-1
(Registration No. 333-187508), and subsequent filings. The Company disclaims
any intent or obligation to update these forward-looking statements.

Contact:

ARCA biopharma, Inc.
Derek Cole
Investor Relations Advisory Solutions
720.940.2163
derek.cole@arcabiopharma.com
 
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