June 18, 2009 (FinancialWire) — Generex Biotechnology Corp. (NASDAQ: GNBT) has consummated the previously announced registered direct offering of 17.2 million shares of its common stock to a select group of accredited investors at $0.6389 per share.

In addition, the company issued to the investors warrants to acquire up to 8.6 million shares of the company’s common stock at $0.76 per share. The warrants are exercisable for a period of five years commencing 183 days after the closing date. The offering resulted in gross proceeds of approximately $11 million and, after deducting placement agent’s fees and estimated offering expenses, the company received not proceeds of $10.8 million. Midtown Partners & Co., LLC served as placement agent for the offering.

The proceeds of the offering will be used by the company, in part, to finance its on-going regulatory development program for Generex Oral-lyn(tm), the company’s proprietary oral insulin spray product, around the world, including the United States, Canada, Mexico, and the European Union. In addition, the proceeds will permit the company to finance production of Generex Oral-lyn(tm) and its confectionary products to meet demand in jurisdictions where such products are currently offered for sale.

Commenting on the offering, Anna Gluskin, the company’s president & chief executive officer, stated: “The past few weeks have been vital ones for the business of Generex. We have raised more than $15 million which will allow us to forge ahead with our regulatory approval processes, including the late stage Phase 3 clinical trial of our flagship product, Generex Oral-lyn(tm).” Gluskin continued: “We are poised to move forward aggressively with the commercialization of our product pipeline and we anticipate realizing the full potential of our efforts.”

The shares and warrants described above and the shares underlying the warrants were offered by Generex pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission on February 23, 2007.

Generex is engaged in the research, development and commercialization of drug delivery systems and technologies. Midtown Partners provides investment banking and financial advisory services to small-cap clients in technology, healthcare, oil & gas, alternative energy, aerospace & defense sectors among others.

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