SAN DIEGO--- Favrille Announces $21.1 Million Registered Direct Offering
Favrille, Inc. (NASDAQ:FVRL) announced today that the Company has entered into definitive agreements with primarily institutional investors to sell up to 7,416,520 shares of its common stock and warrants to purchase up to 4,449,910 shares of its common stock for gross proceeds of approximately $21.1 million, before deducting placement agent fees and estimated offering expenses, in a "registered direct" offering. The investors have agreed to purchase the shares of common stock and warrants to purchase common stock (together, a "unit") at a negotiated purchase price of $2.845 per unit, each unit consisting of one share and a warrant to purchase 0.6 shares of common stock. The warrants will be exercisable at any time prior to the fifth anniversary of the closing of the transaction. The exercise price of the warrants will be $2.77 per share.
Lazard Capital Markets LLC served as sole placement agent for the offering.
The securities described above are being offered by the Company pursuant to a previously filed registration statement, which was declared effective by the Securities and Exchange Commission (the "SEC") on July 11, 2006. The transaction is expected to close on or about November 7, 2007, subject to customary closing conditions. The Company intends to use the net proceeds from this offering to fund its efforts to obtain FDA approval for its lead drug candidate FavId(R), to prepare for commercial launch of FavId and for other general corporate purposes.
This press 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 registration or qualification under the securities laws of any such state. Copies of the final prospectus supplement and accompanying base prospectus relating to this offering may be obtained at the SEC's website at http://www.sec.gov/ or from Lazard Capital Markets LLC at 30 Rockefeller Plaza, 60th Floor, New York, NY, 10020.
About Favrille, Inc.
Favrille, Inc. is a biopharmaceutical company focused on the development and commercialization of targeted immunotherapies for the treatment of cancer and other diseases of the immune system. The Company's lead product candidate, FavId, is based upon unique genetic information extracted from a patient's tumor. FavId is currently under investigation in a pivotal Phase 3 clinical trial for patients with follicular B-cell non-Hodgkin's lymphoma (NHL) and Phase 2 clinical trials in other B-cell NHL indications. The Company is developing additional applications based on its immunotherapy expertise and proprietary cost-effective manufacturing technology, including a second product candidate, FAV-201, for the treatment of cutaneous T-cell lymphoma. To receive additional information on the Company, please visit our website at http://www.favrille.com/.