Marina Biotech Announces $5 Million Private Placement; Implements Reverse Stock Split to Support Financing

Marina Biotech, Inc.

announced today that it has entered into a $5 million private placement with Socius CG II, Ltd. ("Socius"), a Bermuda-based subsidiary of Socius Capital Group, LLC, and that it filed an amendment to its certificate of incorporation to effect a 1-for-10 reverse split of its common stock as of 5:00 p.m. EST on December 22, 2011. "In an extremely challenging economic environment, we are pleased to continue to have the necessary financial resources to advance our industry-leading science and technology," stated J. Michael French, President and CEO of Marina Biotech. "With this additional funding, we will continue to move CEQ508 rapidly through clinical development with the goal of advancing a treatment for patients with Familial Adenomatous Polyposis quickly to the market. We are also having significant success in the development of microRNA-based therapeutics via both systemic and oral delivery and we look forward to partnering our capabilities in this area. Additionally, the reverse stock split, approved by the shareholders at our annual meeting in July, provides the Company with the authorized shares necessary to complete the placement and to execute potential future transactions with Socius or other partners as well as M&A opportunities." Under the terms of the Securities Purchase Agreement, the Company has the right, in its sole discretion, over a term of two (2) years and subject to certain closing conditions and limitations, to sell to Socius up to a total of $5 million of redeemable Series B Preferred Stock of the Company (the "Preferred Stock"). The Preferred Stock will accrue a 10% dividend per annum from the date of issuance. Pursuant to the Securities Purchase Agreement, in addition to the Preferred Stock, Socius shall receive an Additional Investment Right and a Warrant, each to purchase shares of the Company's common stock.