Exhibit 99.1
Company Contacts: |
|
|
Tamara A. Seymour |
| Pete De Spain |
CFO and Vice President, |
| Associate Director, |
Finance & Administration |
| Investor Relations & Corporate Communications |
Favrille, Inc. |
| Favrille, Inc. |
(858) 526-8035 |
| (858) 526-2426 |
tseymour@favrille.com |
| pdespain@favrille.com |
Favrille Establishes $40 Million Committed Equity Financing Facility
San Diego — Dec. 20, 2006 — Favrille, Inc. (Nasdaq: FVRL), a biopharmaceutical company developing patient-specific, active immunotherapies for the treatment of cancer, announced today that it has entered into a Committed Equity Financing Facility (CEFF) with Kingsbridge Capital Limited, a private investment group, in which Kingsbridge has committed to provide up to $40 million of capital during the next three years through the purchase of newly-issued shares of Favrille’s common stock. Under the terms of the agreement, Favrille will determine, at its sole discretion, the exact timing and amount of any CEFF financings, subject to certain conditions. In connection with the CEFF, the Company has issued to Kingsbridge a warrant to purchase 250,000 shares of common stock at an exercise price of $3.98 per share.
“This financing facility offers us the flexibility to supplement our cash position in a controlled manner over time at terms that we believe are favorable to the Company while minimizing dilution for our shareholders,” said Tamara A. Seymour, Chief Financial Officer of Favrille.
The securities issuable in connection with the CEFF and upon the exercise of the warrant issued to Kingsbridge have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration under the Securities Act of 1933 and applicable state securities laws or available exemptions from registration requirements. Favrille has agreed to file a registration statement for the resale of the shares of common stock issuable in connection with the CEFF and the shares of common stock underlying the warrant within 60 days of the date of the agreement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
For a description of the material terms of the CEFF, please refer to Favrille’s current report on Form 8-K to be filed today.
About Favrille, Inc.
Favrille, Inc. is a biopharmaceutical company focused on the development and commercialization of targeted immunotherapies for the treatment of cancer and other diseases of the immune system. The Company’s lead product candidate, FavId, is based upon unique genetic information extracted from a patient’s tumor. FavId is currently under investigation in a pivotal Phase 3 clinical trial for patients with follicular B-cell NHL and Phase 2 clinical trials in other B-cell NHL indications. The Company is developing additional applications based on its immunotherapy expertise and proprietary cost-effective manufacturing technology, including a second product candidate, FAV-201, for the treatment of cutaneous T-cell lymphoma.
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Statements in this press release that are not strictly historical in nature constitute “forward-looking statements.” Such statements include, but are not limited to, references to the terms of the CEFF and Favrille’s ability to access additional financial resources thereunder, and the filing and effectiveness of the registration statement to be filed by Favrille with respect thereto, as well as statements about Favrille’s business and financing objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Favrille’s actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to Favrille’s ability to achieve its financing objectives, including pursuant to the CEFF; the progress and timing of clinical trials for FavId, including potential delays in patient enrollment; difficulties or delays in development, testing, manufacturing and marketing FavId or Favrille’s other product candidates; Favrille’s ability to obtain marketing approval for FavId or Favrille’s other product candidates and the timing of any such approvals; risks associated with achieving projected operating metrics and financial performance or the anticipated number of patients using FavId; Favrille’s ability to obtain additional financing to support its operations; and additional risks discussed in Favrille’s filings with the Securities and Exchange Commission. In addition, conclusions regarding the safety and efficacy of Favrille’s product candidates cannot be made until the results of future clinical trials of longer duration in more patients are known. All forward-looking statements are qualified in their entirety by this cautionary statement. Favrille is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.