FLEMINGTON, N.J., Jan. 13, 2016 (GLOBE NEWSWIRE) -- Arno Therapeutics, Inc. (OTCQB:ARNI), a clinical stage biopharmaceutical company primarily focused on the development of therapeutics for cancer and other life threatening diseases, today announced that it has completed a private placement of its common stock resulting in gross proceeds to the company of approximately $7.4 million, which includes approximately $2.1 million through the automatic conversion of convertible promissory notes issued by the company in October 2015. The financing was led by the Company’s existing investors, including affiliates of Chairman, Arie Belldegrun, MD, OPKO Health, Inc., Soros Fund Management, LLC, Commercial Street Capital LLC, Pontifax, Bonderman Family Limited Partnership, Perceptive Advisors LLC and Auriga Capital Management. The Company intends to use the proceeds from this financing to fund its ongoing clinical development of onapristone, its lead product candidate, and for general corporate purposes.
Alex Zukiwski, MD, Chief Executive Officer of Arno Therapeutics, commented, “We are very pleased to announce the closing of this financing. The proceeds will allow us to continue the clinical development of our lead product onapristone. The board and management are pleased that several of our existing investors have participated in this raise, and I am grateful for the continued strong support of our current shareholders and Board.”
The private placement was made pursuant to the terms of a stock purchase agreement entered into among the company and the investors. Pursuant to the agreement, the Company sold approximately 21.2 million shares of its common stock at a per share price of $0.35, including approximately 6.1 million shares issued upon the automatic conversion of the Company’s 6% Unsecured Convertible Promissory Notes in the aggregate principal amount of $2.1 million issued in October 2015. The Company has also agreed to file a registration statement under the Securities Act of 1933, as amended, covering the resale by the investors of the shares sold in the private placement.
The common stock sold in the private placement has not been registered under the Securities Act of 1933 and may not be resold absent registration under or exemption from such act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Further details of the private placement have been described in a Current Report on Form 8-K to be filed with the SEC by the Company on or about January 13, 2016.
Appointment of Jay Moorin to Board of Directors and Stuart Holden, MD as SAB Chair
In addition, the Company is pleased to announce that Jay Moorin has been appointed to its Board of Directors. Mr. Moorin is a founding Managing Partner of ProQuest Management, LLC, which currently manages approximately $1 billion in four healthcare venture capital funds. Mr. Moorin has vast senior management experience in the biotech, investment banking and pharmaceutical industries. Currently Mr. Moorin serves as Chairman of the Board of Directors of Eagle Pharmaceuticals, is a Board Member of Mevion Medical Systems and a Trustee for the Equinox Fund Management Company. Mr. Moorin also participated as an investor in the Company’s current private placement.
Stuart Holden, MD, Clinical Professor of Urology, Spielberg Family Chair in Urologic Oncology at the UCLA David Geffen School of Medicine and Medical Director at the Prostate Cancer Foundation, has also agreed to Chair the Arno Onapristone Prostate Cancer Scientific Advisory Board.
With OPKO Health's participation in this capital raise, Mitch Steiner, MD will replace Steve Rubin as OPKO Health, Inc.’s Board Observer on the Arno Board of Directors. Dr. Steiner is currently President OPKO Urology at OPKO Health, Inc. and has vast experience in prostate cancer treatment and drug development.
Dr. Arie Belldegrun, Chairman of Arno’s Board of Directors, added, “This is an extremely exciting time for Arno and we gratefully welcome Mr. Moorin, Dr. Steiner and Dr. Holden, all of whom I have known and respected for many years. We look forward to their guidance and advice and will look to leverage their deep experience as leaders in the biotech, scientific and medical communities as we advance onapristone in both prostate and endometrioid indications."
Arno continues to advance its clinical development program of onapristone and has two ongoing, parallel trials. Arno is currently enrolling patients in the second stage of a Phase I/II trial of onapristone in men with advanced, castration-resistant prostate cancer (CRPC); the phase 2 aspect of the study is in combination with abiraterone acetate. In addition, the Company continues to actively screen and enroll patients in a Phase II trial of onapristone in women with recurrent or metastatic endometrioid tumors who have received no more than one prior chemotherapy and no prior hormone therapy.
About Arno Therapeutics
Arno Therapeutics is a clinical stage biopharmaceutical company developing innovative products for the treatment of cancer and other life threatening diseases. Arno has exclusive worldwide rights to develop and market three innovative product candidates. These compounds are in clinical or preclinical development as product candidates to treat hematologic malignancies and solid tumors, as well as infectious diseases. For more information about the company, please visit www.arnothera.com.
This press release contains forward-looking statements that involve substantial risks and uncertainties. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "expects," "plans," "believes," "intends," and similar words or phrases. These forward-looking statements include, without limitation, statements regarding Arno’s planned use of the proceeds from the common stock private placement, as well as Arno's strategy, future operations, outlook, milestones, future financial position, future financial results, plans and objectives. Arno may not actually achieve these plans, intentions or expectations and Arno cautions investors not to place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements made here. Various important factors could cause actual results or events to differ materially from these forward-looking statements. Such factors include, among others, risks that the company’s planned use of proceeds is dependent on the progress and results of its development programs and other factors, the results of clinical trials will not support claims or beliefs concerning the effectiveness of onapristone or any other product candidates, the company’s ability to finance the development of Arno’s product candidates, regulatory risks, and reliance on third party researchers and other collaborators. Additional risks are described in the company's Annual Report on Form 10-K for the year ended December 31, 2014 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Arno is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
Source:Arno Therapeutics Inc.