March 10, 2010 (FinancialWire) — BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) has closed the sale, directly to funds affiliated with two institutional investors, of an aggregate of around 10.4 million shares of BioSante’s common stock and warrants to purchase up to around 5.2 million shares of its common stock, resulting in gross cash proceeds to BioSante of $18 million.

The investors are Great Point Partners, LLC and Deerfield Management company.

BioSante said it received net proceeds of around $17.5 million. Each unit, consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock, was sold for a purchase price of $1.73, which is equal to the closing price of BioSante’s common stock on the day before the securities purchase agreements were signed, as reported by the NASDAQ Stock Market.

The warrants to purchase additional shares will be exercisable at an exercise price of $2.08 per share beginning on September 9, 2010 and will expire on September 8, 2015.

BioSante said it will use the proceeds from the transaction for general corporate purposes, including continuing funding of BioSante’s LibiGel Phase III clinical study program, as well as seeking opportunities for its GVAX cancer immunotherapies, 2A/Furin and other technologies.

Illinois-based BioSante is a specialty pharmaceutical company focused on developing products for female sexual health, menopause, contraception and male hypogonadism.

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