Alimera Sciences Closes $40 Million Financing

Alimera Sciences ALIM, a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals, today announced that it has completed the sale of $40 million of Series A Convertible Preferred Stock (the "Series A Preferred") and warrants to purchase Series A Preferred (the "Warrants") to a group of institutional investors, including both existing and new investors, in a private placement. On October 1, 2012, the Company held a special stockholders meeting at which the stockholders approved the issuance of Series A Preferred and Warrants pursuant to applicable NASDAQ Listing Rules. "We believe the closing of this financing combined with our current cash position will enable us to proceed with the direct commercialization of ILUVIEN in Germany, the United Kingdom and France, without needing to raise any additional funds for this purpose," said Dan Myers, Alimera's President and Chief Executive Officer. "We expect to begin shipping ILUVIEN to Europe in the fourth quarter of 2012 and generating revenue during the first quarter of 2013." At the closing, Alimera sold 1,000,000 units, with each unit consisting of one share of Series A Preferred and a Warrant to purchase .30 shares of Series A Preferred, at a purchase price of $40.00 per unit. The financing resulted in gross proceeds to the Company of approximately $40 million, before deducting expenses payable by the Company of approximately $650,000. Each share of Series A Preferred is convertible into shares of Alimera's common stock, at conversion prices ranging from $2.66 to $3.16 per share based on the occurrence or non-occurrence of certain events. The conversion price is also subject to certain customary price based anti-dilution adjustments. The Warrants are exercisable upon issuance at an exercise price of $44.00 per share of Series A Preferred, provided, however, that the Warrants may be exercised, at the option of the holders, directly for the common stock that would otherwise then be issuable upon conversion of the Series A Preferred covered by such Warrants.