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XTL Biopharm Ltd (XTL)

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Monday 20 March, 2006

XTL Biopharm Ltd

XTL Raises $28M in Private Equity Transaction


 XTL BIOPHARMACEUTICALS LTD. RAISES $28 MILLION IN PRIVATE EQUITY TRANSACTION  
                         WITH INSTITUTIONAL INVESTORS                          

NEW YORK, NEW YORK, March 20, 2006 - XTL Biopharmaceuticals Ltd. (NASDAQ: XTLB;
LSE: XTL; TASE: XTL), a biotechnology company focused on the acquisition,
development and commercialization of therapeutics for the treatment of
infectious diseases, with a focus on hepatitis C, announced today that it has
entered into definitive agreements with institutional investors relating to a
private placement of $28 million in gross proceeds through the issuance of
ordinary shares, represented by American Depositary Receipts (ADRs), and
warrants. JPMorgan Securities Inc. acted as the lead-placement agent. Brean
Murray, Carret & Co., LLC, Oppenheimer & Co., Inc., and Punk, Ziegel & Company,
L.P. served as co-placement agents in the transaction.

Ron Bentsur, Chief Executive Officer of XTL, commented, "We are very pleased to
have consummated this financing with some of the highest-quality investors in
the biotechnology sector in the U.S. We believe that this serves as strong
validation of the promise of our hepatitis C clinical-stage drug pipeline and
the company. Following this offering, we will have sufficient cash to take us
into 2008. The funds raised will not only provide us with capital to support
our current and planned clinical programs for our hepatitis C drug candidates,
but will also provide us with added flexibility in our in-licensing and product
acquisition program, as we aim to build out our pipeline with additional
clinical-stage drug candidates."

In the transaction, XTL sold a total of approximately 4.67 million ADRs, which
represents approximately 46.67 million ordinary shares, at a purchase price of
$6.00 per ADR. In addition, XTL will issue a five-year warrant to purchase
one-half an ordinary share for each ordinary share purchased with an exercise
price equal to $0.875 per share (equivalent to $8.75 per ADR), for an aggregate
of approximately 23.33 million warrant shares. XTL has agreed to register the
ordinary shares, including those issuable upon exercise of the warrants, under
the Securities Act of 1933, list the ADRs for trading on the Nasdaq Stock
Market and to apply to the UK Listing Authority for the new ordinary shares to
be admitted to trading on the London Stock Exchange.


ABOUT XTL BIOPHARMACEUTICALS, LTD.

XTL Biopharmaceuticals Ltd. ("XTL") is engaged in the acquisition, development
and commercialization of therapeutics for the treatment of infectious diseases,
with a focus on hepatitis C. XTL is developing XTL-2125 - a small molecule,
non-nucleoside inhibitor of the hepatitis C virus polymerase. XTL-2125 is
expected to enter Phase 1 clinical trial in chronic hepatitis C patients in 1H
2006. XTL is also developing XTL-6865 - a combination of two monoclonal
antibodies against the hepatitis C virus - presently in Phase 1 clinical trials
in patients with chronic hepatitis C. XTL's hepatitis C pipeline also includes
several families of pre-clinical hepatitis C small molecule inhibitors.  In
addition, XTL has out-licensed to Cubist Pharmaceuticals an antibody
therapeutic against hepatitis B, HepeX-B, which has recently completed a Phase
2b clinical study in hepatitis B liver transplant patients.  XTL is publicly
traded on the NASDAQ, London, and Tel-Aviv Stock Exchanges (NASDAQ: XTLB; LSE:
XTL; TASE: XTL).

The offering was made only to accredited investors, as such term is defined in
accordance with the Securities Act of 1933, as amended. The ordinary shares and
the warrants have not been registered under the Securities Act of 1933, or any
state securities laws. Therefore, they may not be offered or sold in the United
States absent registration under or exemption from the Securities Act of 1933
and any applicable state securities laws. This announcement is neither an offer
to sell nor a solicitation of an offer to buy our ordinary shares or warrants
to purchase ordinary shares.

Cautionary Statement

Some of the statements included in this press release, particularly those
anticipating future financial performance, clinical and business prospects for
our clinical compounds for hepatitis C, XTL-2125 and XTL-6865, growth and
operating strategies and similar matters, may be forward-looking statements
that involve a number of risks and uncertainties. For those statements, we
claim the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. Among the
factors that could cause our actual results to differ materially are the
following: our ability to successfully complete cost-effective clinical trials
for the drug candidates in our pipeline which would affect our ability to
continue to fund our operations with our available cash reserves, our ability
to meet anticipated development timelines for the drug candidates in our
pipeline due to recruitment, clinical trial results, manufacturing capabilities
or other factors; and other risk factors identified from time to time in our
reports filed with the Securities and Exchange Commission and the London Stock
Exchange. Any forward-looking statements set forth in this press release speak
only as of the date of this press release. We do not intend to update any of
these forward-looking statements to reflect events or circumstances that occur
after the date hereof. This press release and prior releases are available at
http://www.xtlbio.com. The information in our website is not incorporated by
reference into this press release and is included as an inactive textual
reference only.


                                                                                                                                                              

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