| BOONTON, N.J., Mar 17, 2010 (BUSINESS WIRE) -- Unigene Laboratories, Inc. (OTCBB: UGNE, http://www.unigene.com)
today announced that it has entered into an amended and restated
financing agreement for $33 million three-year convertible senior
secured term notes. At the closing, which is scheduled to occur today,
Unigene will issue $33,000,000 of new convertible senior secured notes
due in 2013, in exchange for approximately $19,360,000 of existing
non-convertible senior secured term notes which are due in 2011 and the
payment to the Company of approximately $13,640,000 in cash at the
closing, minus fees related to this restructuring. An entity managed by
Victory Park Capital Advisors, LLC is the sole investor in the
transaction. Victory Park has the right to designate two directors to
the Board of the Company, one as the Chairman of the Board. In
connection with this restructuring, Unigene has also restructured notes
held by family members of its management. The Company has also agreed to
make changes to its senior management. Details of the transaction and
copies of the material transaction documents can be found in the
Company's 8-K which will be filed today with the SEC.
"We are pleased to be able to complete this debt restructuring with our
largest stockholder and senior lender to provide the Company with
approximately $13.6 million in additional capital," commented
Dr. Warren P. Levy, President and CEO of Unigene. "This infusion of
additional capital, coupled with the fact that we will not need to make
interest payments on the notes until their maturity and that maturity
date has been extended by approximately 18 months, will significantly
improve our financial condition."
This press release shall not constitute an offer to sell or the
solicitation of offers to buy securities. The convertible notes and the
shares of Unigene common stock issuable upon conversion have not been
registered under the Securities Act of 1933 or the securities laws of
any other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.
About Unigene
Unigene Laboratories, Inc. is a biopharmaceutical company
focusing on the oral and nasal delivery of large-market peptide drugs.
Due to the size of the worldwide osteoporosis market, Unigene is
targeting its initial efforts on developing calcitonin and PTH-based
therapies. Fortical(R), Unigene's nasal calcitonin product for
the treatment of postmenopausal osteoporosis, received FDA approval and
was launched in 2005. Unigene has licensed the U.S. rights for Fortical
to Upsher-Smith Laboratories, worldwide rights for its oral PTH
technology to GlaxoSmithKline, worldwide rights for its calcitonin
manufacturing technology to Novartis and worldwide rights (except for
China) for its oral calcitonin program to Tarsa Therapeutics, Inc.
Unigene's patented oral delivery technology has successfully delivered,
in preclinical and/or clinical trials, various peptides including
calcitonin and PTH analogs. Unigene's patented manufacturing technology
is designed to cost-effectively produce peptides in quantities
sufficient to support their worldwide commercialization as oral or nasal
therapeutics. For more information about Unigene, call (973) 265-1100 or
visit www.unigene.com.
For information about Fortical, visit www.fortical.com.
Safe Harbor statements under the Private Securities Litigation Reform
Act of 1995: This press release contains forward-looking statements
regarding us and our business, financial condition, results of
operations and prospects.Such forward-looking statements include
those which express plans, anticipation, intent, contingency, goals,
targets or future development and/or otherwise are not statements of
historical fact.We have based these forward-looking statements
on our current expectations and projections about future events and they
are subject to risks and uncertainties known and unknown which could
cause actual results and developments to differ materially from those
expressed or implied in such statements.These forward-looking
statements include statements about the following:general
economic and business conditions, our financial condition, competition,
our dependence on other companies to commercialize, manufacture and sell
products using our technologies, the ability of our products to gain
market acceptance and increase market share, the uncertainty of results
of animal and human testing, the risk of product liability and liability
for human trials, our dependence on patents and other proprietary
rights, dependence on key management officials, the availability and
cost of capital, the availability of qualified personnel, changes in, or
the failure to comply with, governmental regulations, the failure to
obtain regulatory approvals for our products and other risk factors
discussed in our Securities and Exchange Commission filings. Words such
as "anticipates," "expects," "intends," "plans," "predicts," "believes,"
"seeks," "estimates," "may," "will," "should," "would," "potential,"
"continue," and variations of these words (or negatives of these words)
or similar expressions, are intended to identify forward-looking
statements. In addition, any statements that refer to expectations,
projections, or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to certain risks, uncertainties, and
assumptions that are difficult to predict. Therefore, our actual results
could differ materially and adversely from those expressed in any
forward-looking statements as a result of various risk factors.
SOURCE: Unigene Laboratories, Inc.
Investor:
The Investor Relations Group
Erika Moran/Dian Griesel, Ph.D.
Media: Janet Vasquez
Phone: 212-825-3210
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