FOR IMMEDIATE RELEASE: | March 23, 2007 |
ISORAY, Inc. ANNOUNCES MAJOR PUBLIC FINANCING
RICHLAND, WA - IsoRay, Inc. (“IsoRay”) (OTCBB Symbol: ISRY), the medical technology company focusing on innovative treatments for solid cancer tumors using its proprietary Cesium-131 brachytherapy seeds, announced today that it has closed a $16,522,000 equity financing led by Punk, Ziegel & Company, and Maxim Group LLC on March 22, 2007.
In the transaction, IsoRay issued 4,130,500 registered shares of its common stock at $4.00 per share and also issued warrants to purchase 826,100 shares of its common stock (excluding warrants issued to the placement agents, which have a 180 day lock up) at an exercise price of $5.00 per share to various institutional investors. If all warrants are exercised, IsoRay would receive an additional $4,130,500. The shares and warrants were sold pursuant to the Company’s registration statement on Form S-3 declared effective by the SEC on February 15, 2007.
“The proceeds from this offering are to be used to expand IsoRay’s sales and marketing, invest in plant and equipment, inclusive of manufacturing technologies, which are expected to lower the company’s production costs and could be used to expand the application of medical isotopes beyond the prostate market,” said Roger Girard, CEO and Chairman of IsoRay.
This press release does not constitute an offer to sell or the solicitation of a offer to buy the shares of common stock or any other securities, nor will there be a sale of the shares of common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
The shares of common stock and warrants may only be offered by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from IsoRay, Inc., 350 Hills St., Suite 106, Richland, WA 99354.
About IsoRay
IsoRay, Inc., through its subsidiary, IsoRay Medical, Inc., is the sole producer of the Cesium-131 brachytherapy seed, used to treat prostate and other cancers. The Cesium-131 seed offers a significantly shorter half-life than the two other isotopes commonly used for brachytherapy, which results in a substantially faster delivery of therapeutic radiation, lower probability of cancer cell survival and reduction of the longevity of common brachytherapy side effects. [1] [2] IsoRay is based in Richland, Washington. More information is available about IsoRay at www.isoray.com.
[1] Armpilia CI, Dale RG, Coles IP, et al. The Determination of Radiobiologically Optimized Half-lives for Radionuclides Used in Permanent Brachytherapy Implants. Int. J. Radiation Oncology Biol. Phys. 2003; 55 (2): 378-385.
[2] Prestidge B.R., Bice W.S., Jurkovic I., et al. Cesium-131 Permanent Prostate Brachytherapy: An Initial Report. Int. J. Radiation Oncology Biol. Phys. 2005; 63 (1): 5336-5337.
Forward-Looking Statement
This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in the documents filed by IsoRay from time to time with the Securities and Exchange Commission. IsoRay undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Media Contacts:
Ralph Schatzmair, Director of Investor Relations
IsoRay Medical, Inc.
416-322-2225
rschatzmair@isoray.com
Barry Bartlett, The Bartlett Group Public Relations
206.285.0673; 206.335.4694 (cell)
IsoRay Medical, Inc.
350 Hills Street, Suite 106
Richland, WA 99352
1.877.4.ISORAY
509.375.1202 TEL
509.375.3473 FAX
www.isoray.com
www.cesium131.com
