Galectin Therapeutics Announces $3 Million Private Placement of Restricted Stock

Galectin Therapeutics Announces $3 Million Private Placement of Restricted
Stock

NORCROSS, Ga., Aug. 21, 2013 (GLOBE NEWSWIRE) -- Galectin Therapeutics Inc.
(Nasdaq:GALT), the leading developer of therapeutics that target galectin
proteins to treat fibrosis and cancer, today announced completion of a $3
million private placement of 500,000 shares of unregistered common stock to a
single investor. The common stock was priced at $6.00 per share, which
represented an approximate 10% discount from the 15 day volume weighted
average trading price, offset by the fact that there were no stock purchase
warrants, placement fees or other fees typically associated with an equity
investment of this magnitude.

"We are pleased and gratified in the confidence demonstrated in the Company by
this investment," said Peter G. Traber, M.D., Chief Executive Officer,
President and Chief Medical Officer, Galectin Therapeutics. "Completing this
transaction significantly increases our cash resources. We recently were
granted Fast Track designation by FDA for GR-MD-02 in NASH or fatty liver
disease with advanced fibrosis, and we expect the additional funds will allow
us to obtain meaningful data from our current Phase 1 clinical trial and
expedite activities antecedent to the start of the Phase 2 clinical program."

Previously, the Company announced it had $5.1 million of non-restricted cash
and cash equivalents available at June 30, 2013 and subsequently received $2.4
million from the exercise of warrants. With the addition of the $3 million in
proceeds from the current transaction, the Company believes it has sufficient
funding for operations and planned research and development through the second
quarter of 2014.

The securities sold in the private placement 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 absent registration with the
Securities and Exchange Commission (SEC) or an applicable exemption from such
registration requirements. The Company is not required to file a registration
statement with the SEC specifically for registering the resale of the shares
of common stock sold in this private placement; however, these shares will be
included in a future registration statement.

About Galectin Therapeutics

Galectin Therapeutics (Nasdaq:GALT) is developing promising carbohydrate-based
therapies for the treatment of fibrotic liver disease and cancer based on the
Company's unique understanding of galectin proteins, key mediators of biologic
function. We are leveraging extensive scientific and development expertise as
well as established relationships with external sources to achieve cost
effective and efficient development. We are pursuing a clear development
pathway to clinical enhancement and commercialization for our lead compounds
in liver fibrosis and cancer. Additional information is available at
www.galectintherapeutics.com.

Forward Looking Statements

This press release contains, in addition to historical information,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements relate to future events or
future financial performance, and use words such as "may," "estimate,"
"could," "expect" and others. They are based on our current expectations and
are subject to factors and uncertainties which could cause actual results to
differ materially from those described in the statements. These statements
include those regarding our expectation that the additional funds will allow
us to obtain meaningful data from our current Phase 1 clinical trial and
expedite activities antecedent to the start of the Phase 2 clinical program,
and the sufficiency of cash on hand to fund future operations and planned
research and development through the second quarter of 2014. Factors that
could cause our actual performance to differ materially from those discussed
in the forward-looking statements include, among others, that our plans,
expectations and goals regarding the clinical trial are subject to factors
beyond our control and provide no assurance of FDA approval of our drug
development plans. Our clinical trial may not produce positive results in a
timely fashion, if at all, and any necessary changes during the course of the
trial could prove time consuming and costly. We may have difficulty in
enrolling candidates for testing, which would impact our estimates regarding
timing, and we may not be able to achieve the desired results. Any significant
delays or unanticipated costs in the trial could delay obtaining meaningful
results from Phase 1 and/or preparing for Phase 2 with the current cash on
hand. Upon receipt of FDA approval, we may face competition with other drugs
and treatments that are currently approved or those that are currently in
development, which could have an adverse impact on our ability to achieve
revenues from this proposed indication. Plans regarding development, approval
and marketing of any of our drugs, including GR-MD-02, are subject to change
at any time based on the changing needs of our company as determined by
management and regulatory agencies. To date, we have incurred operating losses
since our inception, and our ability to successfully develop and market drugs
may be impacted by our ability to manage costs and finance our continuing
operations. For a discussion of additional factors impacting our business, see
our Annual Report on Form 10-K for the year ended December 31, 2012, and our
subsequent filings with the SEC. You should not place undue reliance on
forward-looking statements. Although subsequent events may cause our views to
change, we disclaim any obligation to update forward-looking statements.

Galectin Therapeutics and its associated logo is a trademark of Galectin
Therapeutics Inc.

CONTACT: Jack Callicutt, Chief Financial Officer,
         678-620-3186, ir@galectintherapeutics.com

Galectin Therapeutics, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.