Genta Completes Financing of up to $12.7M

Genta (

) announced today that the Company has entered into definitive agreements with institutional investors in a private placement to sell Units, consisting of Senior Secured Convertible Notes and warrants to purchase Senior Secured Convertible Notes, for up to $12.7 million in aggregate gross proceeds before fees and expenses. The transaction is expected to close on or about September 9, 2011, subject to satisfaction of customary closing conditions. Proceeds of the financing will be used to accelerate development of the Company's small molecule pipeline, particularly late-stage registration studies of tesetaxel, the leading oral taxane in clinical development. “This financing, if fully funded, would provide sufficient funds for more than a year of operations at our projected burn rate”, said Dr. Raymond P. Warrell, Jr., Genta's Chief Executive Officer. “Key projects include finalization of regulatory review for pivotal studies of tesetaxel and selection of a lead compound for IND filing from the oral gallium portfolio. We greatly appreciate the interest and enthusiasm of our investors for these important endeavors.” Rodman & Renshaw, LLC, a wholly-owned subsidiary of Rodman & Renshaw Capital Group served as the exclusive placement agent for this offering.