Avalon Pharmaceuticals Raises $10 Million in Private Placement of Common Stock to Institutional Investors
January 22 2007 - 6:30AM
PR Newswire (US)
GERMANTOWN, Md., Jan. 22 /PRNewswire-FirstCall/ -- Avalon
Pharmaceuticals, Inc. (Nasdaq and NYSE ArcaEx(R): AVRX), a
biopharmaceutical company focused on the discovery and development
of small molecule therapeutics, today announced that it had signed
definitive agreements on January 19, 2007 with institutional
investors for the issuance and sale of 3,000,000 shares of its
common stock at $3.34 per share, in a direct private placement to
those investors. Gross proceeds of the sale are expected to be
$10,020,000. Closing will occur on January 23, 2007, subject to
customary closing conditions. The shares offered have not been
registered under the federal Securities Act of 1933 or any state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from registration
requirements. About Avalon Pharmaceuticals Avalon Pharmaceuticals
is a biopharmaceutical company focused on the discovery and
development of small molecule therapeutics for the treatment of
cancer. Avalon seeks to discover and develop novel therapeutics
through the use of a comprehensive, innovative and proprietary
suite of technologies based upon large-scale gene expression
analysis which it calls AvalonRx(R). This platform facilitates drug
discovery by expanding the range of therapeutic targets for drug
intervention, including targets and target pathways frequently
considered intractable using conventional HTS approaches, allows
more informed decisions about which compounds to advance towards
clinical trials, and facilitates drug development through
identification of biomarkers of efficacy that can stratify patients
or provide early indicators of response. Avalon has a lead product
in Phase I clinical development (AVN944 - IMPDH inhibitor),
preclinical programs to discover inhibitors for the Beta- catenin
and Aurora pathways and drug discovery collaborations with
MedImmune, Novartis, ChemDiv and Medarex. Avalon Pharmaceuticals
was established in 1999 and is headquartered in Germantown, Md.
Safe Harbor Statement This announcement contains, in addition to
historical information, certain forward-looking statements that
involve risks and uncertainties, in particular, related to the
expected proceeds of, and closing date of, the private placement.
Such statements reflect the current views of Avalon management and
are based on certain assumptions. Actual results could differ
materially from those currently anticipated as a result of a number
of factors, risks and uncertainties The information in this Release
should be read in conjunction with the Risk Factors set forth in
our 2005 Annual Report on Form 10-K and updates contained in
subsequent filings we make with the SEC. Contacts: Avalon
Pharmaceuticals, Inc. Noonan Russo Gary Lessing Wendy Lau (Media)
Executive Vice President & CFO Tel: (212) 845-4272 Tel: (301)
556-9900 Fax: (301) 556-9910 The Trout Group LLC Email: Chad Rubin
(Investors) Tel: (212) 477-9007 ext. 47 DATASOURCE: Avalon
Pharmaceuticals, Inc. CONTACT: Gary Lessing, Executive Vice
President & CFO, Avalon Pharmaceuticals, +1-301-556-9900, Fax:
+1-301-556-9910, ; or Wendy Lau, Media, +1-212-845-4272, of Noonan
Russo; or Chad Rubin, Investors, +1-212-477-9007 ext. 47, of The
Trout Group LLC
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