Contact Information: CONTACT: Joseph Belanoff Chief Executive Officer Corcept Therapeutics 650-327-3270 www.corcept.com
Corcept Therapeutics Announces $25.3 Million Private Equity Financing
| Source: Corcept Therapeutics
MENLO PARK, CA--(Marketwire - March 17, 2008) - Corcept Therapeutics Incorporated (NASDAQ : CORT ) today announced that it has entered into a definitive agreement with
certain accredited investors for the private placement of approximately 8.9
million shares of its common stock at a price of $2.77 per share and
warrants to purchase approximately 4.5 million shares of its common stock,
at a price of $0.125 per warrant. The warrants have a seven year term and
an exercise price of $2.77 per share. The transaction is expected to raise
approximately $25.3 million in gross proceeds. The closing for the
financing is expected to occur on March 25, 2008 subject to the
satisfaction of customary closing conditions.
Pursuant to the agreement, the investors, who are led by Longitude Capital
Management Co., LLP, have irrevocably committed to purchase the shares.
Other investors participating in the offering include Paperboy Ventures
LLC, Sutter Hill Ventures and Alta Partners, LLP, venture capital firms
that are all significant shareholders in Corcept, as well as various
entities and individuals related to these firms. Also investing are trusts
and other entities related to members of the Corcept Board of Directors,
Joseph C. Cook, Jr., David L. Mahoney, G. Leonard Baker and James N.
Wilson, and other accredited investors.
Corcept intends to use the proceeds of the financing to conduct its next
Phase 3 clinical trial evaluating CORLUX® for the treatment of the
psychotic features of psychotic depression, which will begin enrollment
shortly, to conduct a clinical trial for CORLUX for the treatment of
Cushing's Syndrome, to conduct clinical trials to further evaluate the
management of weight gain induced by antipsychotic medications, to continue
development of its proprietary, selective GR-II antagonists and for general
corporate purposes, including working capital.
The shares and warrants sold in the private placement and the shares
issuable upon the exercise of the related warrants have not been registered
under the Securities Act of 1933, as amended, or state securities laws, and
may not be offered or sold in the United States without being registered
with the Securities and Exchange Commission ("SEC") or through an
applicable exemption from SEC registration requirements. The shares and
warrants were offered and sold only to accredited investors. Corcept has
agreed to file a registration statement with the SEC covering the resale of
the shares issued in the private placement and the shares issuable upon the
exercise of the warrants.
This news release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any such
state. Any offering of Corcept Therapeutics Incorporated common stock under
the resale registration statement will be made only by means of a
prospectus.
Statements made in this news release, other than statements of historical
fact, are forward-looking statements, including, for example, statements
relating to Corcept's clinical development programs, its spending plans,
including the intended use of the proceeds from the financing and for the
timing of the closing of the financing. Forward-looking statements are
subject to a number of known and unknown risks and uncertainties that might
cause actual results to differ materially from those expressed or implied
by such statements. For example, there can be no assurances with respect
to the commencement, pace of enrollment, cost, rate of spending, completion
or success of clinical trials; there can be no assurance with respect to
the consummation of financing activities; financial projections may not be
accurate; there can be no assurances that Corcept will pursue further
activities with respect to the clinical development of CORLUX. These and
other risk factors are set forth in the Company's SEC filings, all of which
are available from our website (www.corcept.com) or from the SEC's website
(www.sec.gov). We disclaim any intention or duty to update any
forward-looking statement made in this news release.