Opexa Announces Agreements for up to $16.5 Million in Equity Commitments

Opexa Therapeutics

, a company developing Tcelna™, a novel T-cell therapy for multiple sclerosis (MS), announced today that it has signed a purchase agreement on November 5, 2012 for the sale from time to time over a 30-month period of up to $1.5 million of its common stock to Lincoln Park Capital Fund, LLC (Lincoln Park), a Chicago-based institutional investor. These shares are the subject of a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. In addition, Opexa entered into a separate purchase agreement with Lincoln Park, as of November 2, 2012, for the sale from time to time over a 30-month period of up to $15 million of its common stock. The effectiveness of such agreement and the commencement of its 30-month period is contingent upon the effectiveness of a registration statement to be filed by Opexa with the U.S. Securities and Exchange Commission covering the resale of shares that may be issued to Lincoln Park. Lincoln Park has no right to require any sales by Opexa. Opexa will determine when and if to sell shares to Lincoln Park, provided that the amount of shares it can sell will depend on the market price of Opexa's common stock. Opexa cannot sell stock to Lincoln Park in the event that the closing price of its stock is below $0.45. The net proceeds from these financing arrangements will be used for working capital and general corporate purposes including the continued conduct of the Abili-T clinical study, Opexa's recently initiated Phase 2b clinical trial of Tcelna in Secondary Progressive MS patients. “These agreements provide us with flexibility to raise capital on an as needed basis and at our discretion," commented Neil K. Warma, President and Chief Executive Officer of Opexa. "The commitments will help fund working capital needs as we continue solid progress with the Abili-T trial.” Under both agreements, there are no upper limits to the price Lincoln Park may pay to purchase Opexa common stock. Any time that Opexa elects to sell shares to Lincoln Park, the pricing of that sale will be fixed pursuant to a formula based upon the prevailing market prices of Opexa common stock immediately preceding the notice to Lincoln Park (or over a period of up to 12 business days leading up to such time). Accordingly, Opexa will know on that date of notice the fixed price per share that Lincoln Park will be required to pay. There are no warrants associated with any purchases under the agreements and the agreements prohibit any shorting or hedging by Lincoln Park.