MENLO PARK, CA -- (Marketwire) -- 03/26/12 -- Corcept Therapeutics Incorporated ("Corcept") (NASDAQ: CORT), a pharmaceutical company engaged in the discovery, development and commercialization of drugs for the treatment of severe metabolic and psychiatric disorders, today announced that investors exercised warrants to purchase approximately 4.2 million shares of Corcept common stock. The investors had purchased these warrants from the company in a private placement of securities that closed on April 21, 2010. The exercise price was $2.96 per share, which produced gross proceeds to Corcept of approximately $12.4 million. On March 25, 2012, Corcept entered into a definitive agreement to raise approximately $0.5 million in additional gross proceeds through a private placement to the same investors of warrants to purchase approximately 4.2 million shares of the company's common stock.
The new warrants were sold at $0.125 per share of underlying common stock. They have a three year term and a per share exercise price of $4.05, which was the closing price of Corcept's common stock on the Nasdaq Capital Market on March 23, 2012. Funding of the warrant exercise and the offering of new warrants will occur on March 29, 2012.
Corcept intends to use the net proceeds from the warrant exercise and the offering to fund its ongoing operations, including the commercialization of Korlym (mifepristone) 300 mg Tablets, continuation of its Phase III clinical trial of mifepristone for the treatment of the psychotic features of psychotic depression, the further development of its portfolio of next-generation compounds, as well to fund working capital and for general corporate purposes.
The warrants sold in the private placement and the shares issuable upon the exercise of the 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 warrants were offered and sold only to accredited investors.