Depomed, INC. Completes $8 Million Private Placement
FOSTER CITY, CA - February 24, 1998 - DepoMed, Inc. (Nasdaq: DPMD) announced that it has completed a private placement of common stock for $8 million, with net proceeds of approximately $7.5 million to the Company. Investors agreed to a lock-up provision until November 6th, 1998, the one-year anniversary of DepoMed's initial public offering (IPO). The private placement was managed by Evolution Capital, Inc. "We are extremely pleased to have concluded this private placement", commented Dr. John Fara, President and CEO. "Combined with the money we raised on our IPO, this private placement should enable us to put in place additional R&D and administrative infrastructure needed to take advantage of additional product development opportunities over the next several years", he added.
In November 1997, DepoMed completed its initial public offering, netting approximately $5.8 million. Following the present transaction, DepoMed has approximately 6.5 million shares of common stock outstanding.
DepoMed, Inc., a development stage company, is engaged in the development of new and proprietary oral drug delivery technologies. The Company has developed two types of oral drug delivery systems, including the Gastric Retention System (the "GR System") and the Reduced Irritation System (The "RI System"). The GR System is designed to be retained in the stomach for an extended period of time while it delivers the incorporated drug or drugs. The RI System is designed to reduce gastrointestinal irritation, a side effect of many orally administered drugs. In addition to these features, both DepoMed systems are designed to provide continuous, controlled delivery of an incorporated drug.
The statements in this press release that are not historical facts are forward-looking statements that involve risk and uncertainties, including risks associated with the development of products, technological changes and collaborative arrangements and other risks identified in the Company's registration statement on Form SB-2 (File No. 333-25445) and quarterly report on Form 10-Q, filed with the Securities and Exchange Commission. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue relevance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated events.
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