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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2000
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INKINE PHARMACEUTICAL COMPANY, INC.
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(Exact Name of Registrant as Specified in Charter)
New York 0-24972 13-3754005
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
1720 Walton Road, Suite 200, Blue Bell, Pennsylvania 19422
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (610) 260-9350
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ITEM 5. OTHER EVENTS
On May 5, 2000, the Company completed a private offering of 2,838,871
shares of its common stock to certain investors and issued a warrant to purchase
283,887 shares of common stock priced at $5.13 per share to the Company's
placement agent. After expenses, the Company will realize approximately $9.9
million of the approximately $10.8 million in proceeds from the offering. The
Company is obligated to file a registration statement within 10 business days of
the closing covering both the common stock and the shares issuable upon the
exercise of the warrant.
ITEM 7. EXHIBITS
The following exhibits are filed as part of this report on Form 8-K:
Exhibit No. Title
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99.1 Press Release, dated May 8, 2000.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
INKINE PHARMACEUTICAL COMPANY, INC.
By: /s/ Robert F. Apple
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Robert F. Apple
Senior Vice President and
Chief Financial Officer
Dated: May 9, 2000
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EXHIBIT INDEX
Exhibit No. Title
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99.1 Press Release, dated May 8, 2000.
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Exhibit No. 99.1
INKINE PHARMACEUTICAL COMPANY, INC.
Sentry Park East - 1720 Walton Road
Blue Bell, PA 19422
BUSINESS NEWS
IMMEDIATE RELEASE
INKINE PHARMACEUTICAL RAISES OVER $10 MILLION
IN PRIVATE PLACEMENT FINANCING
BLUE BELL, PA, MAY 8, 2000 - INKINE PHARMACEUTICAL COMPANY, INC.
(NASDAQ: INKP) today announced that it raised approximately $10.8 million
through a private placement of approximately 2.8 million shares of common stock
to a group of investors, including institutional investment funds managed by
Cahill, Warnock & Company, Baker Street Capital Management, Worthington Growth
L.P. and Furman Selz Capital Management.
"We are fortunate to attract such high quality institutional
investors," said Leonard S. Jacob, M.D., Ph.D., Chairman and CEO of InKine.
"Part of this financing will fund the sales, marketing, and manufacturing of our
lead product candidate, Diacol(TM), for use as a purgative agent prior to
colonoscopy. Diacol iS currently under FDA review.
"Additionally, the Company intends to use proceeds from this placement
to support the development of CBP-1011, currently in Phase II for Inflammatory
Bowel Disease and Phase III for Idiopathic Thrombocytopenic Purpura. Our strong
cash position, which now approximates $17 million, will support continued
implementation of our business plan."
After expenses, the Company will realize approximately $9.9 million in
net proceeds. Leerink Swann & Company, a Boston investment banking firm
specializing in the life sciences and healthcare sector, acted as placement
agent for the transaction.
The shares of common stock and placement agent warrants issued in the
offering have not been registered under the Securities Act of 1933, as amended,
and cannot be offered or sold absent registration or an applicable exemption
from registration. The Company intends to file a Registration Statement covering
future resale of these securities by the purchasers.
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About InKine Pharmaceutical Company
InKine Pharmaceutical Company, Inc. is a publicly traded
biopharmaceutical company focused on the diagnosis and treatment of cancer and
autoimmune diseases. The company's development strategy is to acquire late-stage
drug candidates with short time lines to commercialization. Support of
early-stage product opportunity comes through its university-based sponsored
research.
InKine's portfolio includes two late-stage clinical compounds: Diacol,
a tablet purgative product for colonoscopies and other procedures undergoing FDA
review; and CBP-1011, a steroid molecule in Phase III trials for the treatment
of Idiopathic Thrombocytopenic Purpura and Phase II trials for the treatment of
Inflammatory Bowel Disease. In addition, the Company is developing preclinical
compounds including Angiocidin, a potent and specific angiogenesis inhibitor for
potential use in cancer patients.
About The Lead Investor - Cahill, Warnock & Company
Cahill, Warnock & Company, LLC specializes in private equity and
negotiated direct investments in emerging public and private companies. Founded
in 1995, Cahill, Warnock & Company is dedicated to funding and participating in
the growth of well-managed businesses across a broad range of industries
including health care, telecommunications, business services and education.
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This announcement contains certain forward-looking statements that are subject
to risks and uncertainties, including in particular, the statement regarding the
funding of the sales, marketing and manufacturing of Diacol which assumes FDA
approval of Diacol. Actual results could differ materially from those currently
anticipated as a result of a number of factors, including, but not limited to,
the risks and uncertainties discussed under "Other Factors to be Considered" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in the Company's Annual Report on Form 10-K for the fiscal year
ended June 30, 1999, as filed with the Securities and Exchange Commission.
CONTACTS:
Robert F. Apple Anne McBride
Chief Financial Officer Chairman
InKine Pharmaceutical Company, Inc. The Anne McBride Company
Tel. (610) 260-9364 Tel. (212) 983-1702
Thomas A. Fitzgerald
Managing Director
Leerink Swann & Company
Tel. (617) 918-4855
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