Exhibit 99.1
AKESIS PHARMACEUTICALS ENTERS INTO BRIDGE FINANCING TRANSACTION
SAN DIEGO—(BUSINESS WIRE)—Akesis Pharmaceuticals, Inc. (OTCBB: AKES—News), an emerging diabetes drug-development company, today announced that, on September 29, 2008, it entered into a Note and Warrant Purchase Agreement with Avalon Ventures VII, L.P. Pursuant to the Note and Warrant Purchase Agreement, the Company has the ability to sell to Avalon Ventures one or more convertible promissory notes maturing February 1, 2009 in an aggregate principal amount of up to $2.0 million. Each note will automatically convert into shares of the Company’s preferred stock in the event of the closing, prior to February 1, 2009, of a preferred stock financing resulting in aggregate gross proceeds to the Company of at least $2.0 million (including amounts received in connection with the conversion of the notes) and will be issued together with a five-year warrant to purchase additional shares of such preferred stock. An initial closing of the sale of notes and warrants was held on the Effective Date of the Note and Warrant Purchase Agreement and involved the sale to Avalon Ventures of a note (and a corresponding warrant) representing an initial principal amount of $1.0 million.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities issued pursuant to the Note and Warrant Purchase Agreement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws and may not be offered or sold in the United States absent registration under the Securities Act of 1933, as amended, and applicable state securities laws or an applicable exemption from registration requirements.
About Akesis Pharmaceuticals
Akesis Pharmaceuticals has a pipeline of innovative oral product candidates for the treatment of diabetes and related metabolic disorders. These product candidates are supported by issued and filed U.S. patents for both prescription and over-the-counter treatments that combine anti-diabetic trace minerals with certain classes of diabetes oral agents. Akesis’ product candidates have demonstrated preliminary evidence of efficacy in lowering and controlling blood glucose levels in patients with Type 2 diabetes. Blood sugar control via oral drugs represents a market opportunity in the billions of dollars, as reports indicate that approximately 20 million people suffer from diabetes in the United States alone. More information can be found atwww.akesis.com.
About Avalon Ventures
Founded by Kevin Kinsella in 1983, Avalon Ventures has invested in over 60 companies, sixty percent of which were founded by an Avalon partner. Among these portfolio companies are Landmark Graphics Corporation, Synaptics, Athena Neurosciences, Vertex Pharmaceuticals, Onyx Pharmaceuticals, Sytera, Amira Pharmaceuticals, AnaptysBio, Chumby Industries, Zynga Networks and Nabbr. For more information seewww.avalon-ventures.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can generally be identified as such because the context of the statement will include words such as “will,” “expects,” “should,” “believes,” “anticipates” or words or phrases of similar meaning. Examples of such statements include statements relating to the potential sale of
additional notes and warrants pursuant to the Note and Warrant Purchase Agreement. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in Akesis’ filings with the Securities and Exchange Commission, including Akesis’ most recent annual report on Form 10-KSB and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release, and Akesis does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Contact:
Akesis Pharmaceuticals, Inc.
Jay Lichter, Ph.D., Chairman and CEO
858-454-4311
jlichter@akesis.com
or
Lippert/Heilshorn & Associates
Don Markley, 310-691-7100
dmarkley@lhai.com
