March 24, 2009 (FinancialWire) -- PharmAthene, Inc. (AMEX: PIP) said that certain institutional investors have agreed to purchase around $5.5 million of its common stock and warrants in a registered public offering.

Under the terms of the purchase agreements, PharmAthene will sell an aggregate of 2,116,055 newly issued shares of its common stock at $2.60 per share and warrants to purchase an aggregate of 696,295 shares of its common stock at an exercise price of $3 per share.

The warrants will be exercisable beginning on the six month anniversary of the closing date of the transaction and will expire five years from the date they become exercisable. The financing is scheduled to close on or about March 26.

PharmAthene plans to use the net proceeds from the transaction for general corporate purposes, including the satisfaction of existing obligations.

Annapolis, Maryland-based PharmAthene was formed to develop and commercialize medical countermeasures against biological and chemical weapons.

The company's product development programs include two anthrax vaccines, an antibody for the prevention and treatment of anthrax infection, a bioscavenger for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents and a recombinant dual antigen vaccine for plague.

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