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Biotech / Medical : T/FIF, a New Plateau -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (2192)	8/22/2003 9:13:11 AM
From: Icebrg	Read Replies (1) \| Respond to of 2243

>> Cortex Pharmaceuticals - COR >> It seems as if Cortex is gearing up for their first financing for so many years, I suggested this morning. And voila: Cortex Closes on a $5 Million Private Placement Friday August 22, 8:58 am ET [For a dilution of about 20 %. That's a lot. On the other hand. For the first time "ever" the company will have some money to spend. Let's hope it is spent wisely]. IRVINE, Calif.--(BUSINESS WIRE)--Aug. 22, 2003--Cortex Pharmaceuticals, Inc. (AMEX:COR - News) announced that it has closed on a private placement with a select group of institutional investors with gross proceeds of $5 million. Cortex has agreed to issue 3,333,334 shares of its common stock at $1.50 per share and five year warrants to purchase 3,333,334 shares of common stock at a price of $2.55 per share. Rodman & Renshaw, Inc. served as the placement agent for the transaction. "The proceeds from this financing will allow us to accelerate the development of some of our more potent second generation AMPAKINE® compounds," said Roger G. Stoll, President and Chief Executive Officer of Cortex. "The ultimate goal is to move these compounds toward FDA filing and the execution of our business plan, which is to focus internal development on potential orphan drug indications such as narcolepsy and Fragile X syndrome, while we continue to work on partnering the larger indications with major pharmaceutical companies." Edit Once the warrants have been exercised the dilution will be 40 %. That's even worse. On the other hand the market capitalization of Cortex is only 35 mUSD, so they should be able to afford one dilutive issue, provided it gives them the jumpstart they need. Now CX 717 is heading towards the clinic.