Bionovo (BNVI) Prices 3.23M Units at $6.20, Raising Gross Proceeds of $20M

October 2, 2009 9:27 AM EDT

Bionovo, Inc. (Nasdaq: BNVI) today announced that it has entered into agreements with selected investors to sell up to 3,230,995 units at a price per unit of $6.20 for aggregate gross proceeds of up to $20.0 million. Each unit consists of ten shares of common stock and ten warrants. Each warrant entitles its holder to purchase one share of Bionovo common stock at an exercise price of $0.85. The warrants may be exercised at any time after six months from the date of the closing and will expire after five years. The offering is expected to close on or about Wednesday, October 7, 2009, subject to customary closing conditions.

Bionovo expects to use the net proceeds from this offering to advance its lead drug candidate for postmenopausal vasomotor symptoms, Menerba, into Phase 3 clinical trials, and the remaining net proceeds, if any, for general corporate purposes.

Dawson James Securities acted as the exclusive placement agent for the offering. Bionovo granted the placement agent a 30-day option to arrange for the sale of up to an additional 484,649 units (consisting of 4,846,493 shares and 4,846,493 warrants) to cover over-allotments.

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