Genta Incorporated Raises in Excess of $12 Million Through
Private Placement of Equity Securities
SAN DIEGO--(BW HealthWire)--July 3, 1997--Genta Incorporated (Nasdaq:GNTAC) announced today
that it raised gross proceeds in excess of $12 million through the private placement of Premium Preferred
Units(TM).
``We are very pleased at the overwhelming interest shown by investors in Genta and its technologies as
evidenced by the oversubscription of the offering,'' said Michael S. Weiss, Interim Chairman of Genta
Incorporated. ``This is an extremely exciting time for the Company. The funds from the placement will be
used to accelerate Genta's clinical trials for its proprietary Anticode(TM) (antisense) products which are
intended to treat cancer at its genetic source. We will also seek additional acquisition candidates which
support our strategy of building a product portfolio that represents varying degrees of development risk
and market potential.''
Following the completion of a $3 million investment by The Aries Fund and The Aries Domestic Fund,
L.P. in February 1997, Genta has embarked on an aggressive restructuring program. In recent months
the Company has: focused its product and technology development efforts on a few core areas; reduced
head count by almost 50 percent; effected a one-for-ten reverse stock split; appointed a transitional
management team; and raised private placement funds in excess of $12 million as detailed above. Genta
expects to appoint additional directors and a new chief executive officer during the third quarter of 1997.
Each Unit sold in the private placement consists of 1,000 shares of Genta Preferred Stock, par value
$.001 per share, stated value $100.00 per share, and warrants to purchase 5,000 shares of Genta
Common Stock, par value $.001, at any time prior to the fifth anniversary of the final closing.
The statements contained in this press release that are not historical are the forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended, including statements regarding the expectations,
beliefs, intentions or strategies regarding the future. The Company intends that all forward-looking
statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect the Company's views as of the date they are made with
respect to future events, but are subject to many risks and uncertainties, which could cause the actual
results of the Company to differ materially from any future results expressed or implied by such
forward-looking statements. Examples of such risks and uncertainties include, but are not limited to: the
obtaining of sufficient financing to maintain the Company's planned operations; the timely development,
receipt of necessary regulatory approvals and acceptance of new products; the successful application of
the Company's technology to produce new products; the obtaining of proprietary protection for any such
technology and products; the impact of competitive products and pricing and reimbursement policies; and
the changing of market conditions. The Company does not undertake to update any forward-looking
statements.
Genta Incorporated (Nasdaq:GNTAC) is a biopharmaceutical company whose strategy consists of building
a product and technology portfolio that represents varying degrees of development risk and market
potential, including Anticode(TM) (antisense) products intended to treat cancer at its genetic source, oral
controlled-release drugs and other genomics opportunities.
Contact:
Robert E. Klem, Ph.D.
JBL Scientific
805/544-8524 |
