May 11, 2009 (FinancialWire) — Discovery Laboratories, Inc. (NASDAQ: DSCO) (Current Market Cap: US$84.74 Mil.) said it has entered into definitive agreements with institutional investors to raise gross proceeds of around $11.3 million from the sale of 14 million shares of its common stock at a purchase price of $0.81 per share.

Under the terms of the transaction, investors will also receive warrants to purchase one half share of common stock for each share of common stock purchased. The warrants will be exercisable at any time on or after the date of issuance for a period of five years at an exercise price of $1.15 per share.

The closing of the offering is scheduled.

Warrington, Pennsylvania-based Discovery Laboratories is a biotechnology company developing Surfactant therapies for respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing.

Discovery Labs’ proprietary KL4 Surfactant Technology produces a synthetic, peptide-containing surfactant that is structurally similar to pulmonary surfactant and is being developed in liquid, aerosol or lyophilized formulations. The company is focused initially on developing its KL4 surfactant pipeline to build a pediatric franchise.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.