-- Provides capital for expanding business --
RESEARCH TRIANGLE PARK, N.C., Oct. 21 /PRNewswire-FirstCall/ -- Icoria,
Inc. (Nasdaq: ICOR), an integrated systems biology company, announced today
that it has raised $5 million gross proceeds through the sale of a three-year
Secured Convertible Term Note ("Note") in a private placement with Laurus
Master Fund, Ltd. This Note is payable in cash or convertible into shares of
Icoria's common stock at a fixed conversion price of $0.53 per share beginning
in May 2005. Terms of the Note provide for an initial interest rate of Prime
plus 2.50%, subject to reductions dependent on future increases in Icoria's
share price.
In connection with the sale of this Note, the Company issued warrants that
provide for the purchase of approximately 1.65 million shares of Common Stock
at a weighted average price of $0.79. Equal amounts of these warrants expire
two and five years after issuance.
"This financing represents an important milestone in strengthening our
liquidity position, as we move closer to financial self-sustainment. With the
proceeds from this financing we have repaid our existing equipment loan to
General Electric Capital Corporation, which carried interest rates over 11%
and placed restrictions on our cash. This financing also helps us with our
current loan covenants," said Philip R. Alfano, Chief Financial Officer of
Icoria.
"We are very pleased to have secured this financing, which will provide
necessary capital to continue to grow our business," said Heinrich Gugger,
Ph.D., President and CEO of Icoria. "When coupled with the net cash flow
resulting from our growing revenue base, this financing allows us to continue
to expand and enrich our programs to meet the needs of the healthcare and
agrichemical marketplaces."
The Company will file a Form 8-K Report with the Securities and Exchange
Commission including supporting documents related to this financing
transaction.
About Icoria
Icoria (formerly Paradigm Genetics, Inc.) is an integrated systems biology
company applying its proprietary platform to the discovery and development of
safer, more effective drugs and agrichemicals. Icoria has major contracts
with the National Institute of Environmental Health Sciences, Bayer
CropScience, the Monsanto Company, Pioneer Hi-Bred International (a subsidiary
of DuPont) and L'Oreal Inc. Icoria also has a major grant from the National
Institute of Standards & Technology's Advanced Technology Program. For more
information, visit http://www.icoria.com .
This press release contains forward-looking statements. Such forward-
looking statements are based on management's current expectations and are
subject to a number of risks, factors and uncertainties that may cause actual
results, events and performance to differ materially from those referred to in
the forward-looking statements. These risks, factors and uncertainties
include, but are not limited to, Icoria's early stage of development, history
of net losses, technological and product development uncertainties, reliance
on research collaborations, uncertainty of additional funding and ability to
protect its patents and proprietary rights. Certain of these and other risks
are identified in Icoria's annual report on Form 10-K for the year ended
December 31, 2003 and in its quarterly report on Form 10-Q for the quarter
ended June 30, 2004, each filed with the Securities and Exchange Commission.
The Company does not intend to update any of the forward-looking statements
after the date of this release to conform these statements to actual results
or to changes in our expectations, except as may be required by law.
SOURCE Icoria, Inc.
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Related links:
http://www.icoria.com
CONTACT:
Brian Ritchie or Mark Vincent of EURO RSCG
Life NRP, +1-212-845-4200
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