Raises $2.3M through Private Placement of Promissory Notes and Receives $438,000 for the sale of its New Jersey State Net Operating Losses
NexMed, Inc. (Nasdaq: NEXM), a specialty CRO with a pipeline of products based on the NexACT® technology , announced today that it has raised $2.3 million in a private placement of promissory notes from two accredited U.S. investors. The promissory notes, due on or before August 4, 2010, are repayable at NexMed's option in either cash or shares of unregistered common stock at prices ranging from $0.36 to $0.40 per share. The private placement did not include any warrant or registration rights, therefore the investors are required to hold the securities for a minimum of six months. NexMed intends to use the proceeds raised from the transaction for general corporate purposes and to advance the applications of its NexACT delivery technology into the oral and biologics transdermal delivery space.
NexMed also announced the approval for the sale of its New Jersey state tax credits and net operating losses or NOLs pursuant to the Technology Tax Certificate Transfer Program sponsored by the state of New Jersey. The sale of these tax losses generates approximately $438,000 in net proceeds for NexMed.
Dr. Bassam Damaj, President and Chief Executive Officer of NexMed, stated, "The completion of the private placement with two of our long-term shareholders at the announced terms is a direct reflection of their continued confidence in the strength of NexMed's proven pre-clinical service business, our technology and the value of our product pipeline, as well as our recent performance, including our ability to execute on our newly announced growth strategy while remaining NASDAQ listed. In the short time since NexMed's acquisition of Bio-Quant, our team has made solid progress toward developing additional, key indications for our current drug pipeline as well as in the discovery and validation of new uses for the NexACT drug delivery technology. As stated previously, we have also received multiple expressions of interest from biotechnology and pharmaceutical companies who may be interested in assessing the NexACT technology as a delivery mechanism for their own proprietary drug candidates. Going forward, we believe that the continued execution of our strategy, both financially and operationally, should allow us to achieve our goal of profitability in 2011."
About NexMed
NexMed, due to its recent acquisition of Bio-Quant, is the largest specialty CRO based in San Diego, CA and is one of the industry's most experienced CROs for in vitro and in vivo pharmacology services and research models. NexMed also has a proprietary product pipeline based on its NexACT® drug delivery technology. For further information, go to www.nexmed.com and www.bio-quant.com.
Forward-Looking Statement Safe Harbor
Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described, including, but not limited to, its ability to effectively implement its business strategy and become profitable in 2011 and other matters that are outside the control of the Company.
Contacts:
NexMed, Inc.
Edward Cox, 858-926-5811
ecox@nexmed.com
V.P.
Investor Relations
or
Rx Communications Group, LLC
Paula
Schwartz, 917-322-2216
pschwartz@rxir.com
