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Biotech / Medical : MGI Pharma MOGN New patents, anti cancer -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (1367)	3/1/2001 1:09:17 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 1826

MGI PHARMA Secures Equity Financing Facility Mar 1, 2001 MGI PHARMA, INC. today announced that it has entered into a Flexible Underwritten Equity faciLity (FUEL(TM)) arrangement with Ramius Securities, LLC. Under this facility, Ramius Securities will place, at MGI PHARMA's election from time to time, an aggregate of up to $100 million of MGI PHARMA common stock over a two-year period. Sales under the facility are expected to be made using shares from MGI PHARMA's shelf registration statement on Form S-3, previously filed with the Securities and Exchange Commission. MGI PHARMA intends to use net proceeds from any sale of common stock to fund research and development, product commercialization, potential product acquisitions, product development opportunities, working capital and other general corporate purposes. "We intend to selectively use this facility to raise capital in an opportunistic manner," said Bill Brown, MGI's chief financial officer. "We believe that Ramius' FUEL facility will be one of several important sources of capital for funding our growing oncology product portfolio." Under the FUEL facility, MGI PHARMA selects the starting date of any selling period and the dollar amount of shares to be sold in that period, subject to a limitation based on the daily trading volumes of MGI PHARMA common stock. Ramius Securities will sell the MGI PHARMA common stock at market prices prevailing at the time of sale, but not below a minimum sales price to be set by MGI PHARMA for each ten-day selling period. MGI PHARMA will pay Ramius Securities an underwriting commission of approximately four percent on the market value of shares sold. In addition, MGI PHARMA has granted Ramius Securities a purchase option, exercisable at any time before February 28, 2003 to purchase up to 100,000 shares of MGI PHARMA common stock at prices ranging from $16.95 to $24.72 per share. This facility does not preclude MGI from issuing shares in other financing transactions and it may be canceled by MGI PHARMA at any time. Ramius Securities and its affiliates are prohibited by the terms of the facility from engaging in any short-selling activities with respect to MGI PHARMA common stock