[NOVELOS LOGO]
EXHIBIT 99.1
NOVELOS THERAPEUTICS ANNOUNCES $12.9 MILLION PRIVATE PLACEMENT
NEWTON, MASS., MARCH 2, 2006 - NOVELOS THERAPEUTICS, INC. (OTCBB: NVLT), a
biotechnology company focused on the development of therapeutics to treat cancer
and hepatitis, today announced that it has entered into definitive securities
purchase agreements with institutional investors to raise $12.86 million in
gross proceeds through the sale of shares of its common stock and warrants.
Novelos has agreed to sell an aggregate of 9.53 million shares of common stock
at a price of $1.35 per share. The investors will also receive warrants to
purchase an additional 7.15 million shares of common stock at an exercise price
of $2.50 per share.
Oppenheimer & Co. and Rodman & Renshaw are serving as the placement agents. The
shares and warrants will be issued in a private placement transaction under
Regulation D of the Securities of Act of 1933. Novelos is required to file a
registration statement covering the common stock purchased by the investors and
the common stock underlying the warrants within 30 days of the closing and to
use its best efforts to obtain effectiveness within 120 days of the closing.
"I am very pleased to have quality institutional investors participate in this
financing, which will provide significant funding to vigorously proceed with the
Phase 3 development of NOV-002 in lung cancer, in addition to our other clinical
development programs, including chemotherapy-resistant ovarian cancer and
chronic hepatitis C with NOV-205, our second compound. Meanwhile, we will
continue to seek government procurement for `dirty bomb' treatment with
NOV-002," said Harry Palmin, President and CEO of Novelos.
ABOUT NOVELOS THERAPEUTICS, INC.
Novelos Therapeutics, Inc. (OTCBB: NVLT) is a biotechnology company
commercializing oxidized glutathione-based compounds for the treatment of cancer
and hepatitis. NOV-002, the lead compound currently in Phase 3 development for
lung cancer, is designed to act as a chemoprotectant and an immunomodulator.
NOV-002 is also being developed to treat chemotherapy-resistant ovarian cancer
and acute radiation injury. NOV-205, a second compound, is designed to act as a
hepatoprotective agent with immunomodulating and antiviral activity. Novelos
plans to initiate a U.S.-based NOV-205 clinical study for chronic hepatitis C by
mid-2006. Both compounds have completed clinical trials in humans and have been
approved for use in the Russian Federation where they were developed. For
additional information about Novelos please visit www.novelos.com
# # #
COMPNANY CONTACT INVESTOR RELATIONS
Harry S. Palmin, President and CEO Stephen Lichaw, Vice President
Novelos Therapeutics, Inc. H.C. Wainwright & Co, Inc.
One Gateway Center, Ste 504 52 Vanderbilt Avenue, 12th Floor
Boston, MA 02458 New York, NY 10017
Ph: 617-244-1616 Ph: 212-856-5706
Email: hpalmin@novelos.com Email: slichaw@hcwainwright.com
This news release contains forward-looking statements. Such statements are valid
only as of today, and we disclaim any obligation to update this information.
These statements are subject to known and unknown risks and uncertainties that
may cause actual future experience and results to differ materially from the
statements made. These statements are based on our current beliefs and
expectations as to such future outcomes. Drug discovery and development involve
a high degree of risk. Factors that might cause such a material difference
include, among others, uncertainties related to the ability to attract and
retain partners for our technologies, the identification of lead compounds, the
successful preclinical development thereof, the completion of clinical trials,
the FDA review process and other government regulation, our pharmaceutical
collaborators' ability to successfully develop and commercialize drug
candidates, competition from other pharmaceutical companies, product pricing and
third-party reimbursement.
