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NEXMED RECEIVES CASH INFUSION OF $5.75 MILLION
East Windsor, NJ, July 1, 2008 -- NexMed, Inc. (Nasdaq: NEXM), a developer of innovative transdermal products based on the NexACT® drug delivery technology, today announced that it raised $5.75 million in gross proceeds from the issuance of new convertible notes due December 31, 2011 (the “Notes”), which are secured by a mortgage on NexMed’s manufacturing facility in East Windsor, New Jersey. The Notes were purchased by accounts managed by Tail Wind Advisory and Management Ltd, which is authorized and regulated by The Financial Services Authority of Great Britain. The Tail Wind Fund Ltd., a long term investor in NexMed, was one of two purchasers of the issue.
The Notes are convertible into shares of NexMed common stock, with $4.75 million convertible at $2 per share on or before the due date and $1 million convertible at $1.75 per share on or before December 31, 2008. The Notes have a coupon rate of 7% per annum which is payable at NexMed’s option, in cash or with certain exceptions, in shares of NexMed common stock at a price of 95% of a five-day weighted average of the market price of its common stock prior to the time of payment. The Company has used the proceeds to pay off in full the $3 million in debt outstanding and has earmarked the balance for working capital and general corporate purposes. NexMed has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock that are issuable upon conversion of the Notes.
About NexMed
NexMed, Inc. is leveraging its proprietary NexACT drug delivery technology to develop innovative topical pharmaceutical products that address unmet medical needs. Novartis is completing pivotal Phase 3 trials for NexMed’s NM100060, a novel onychomycosis treatment exclusively licensed to Novartis. In November 2007, NexMed’s New Drug Application for its topical erectile dysfunction treatment was accepted for review by the FDA and the Company signed a U.S. licensing agreement for the product with Warner Chilcott. NexMed's pipeline also includes a Phase 2 treatment for female sexual arousal disorder and an early stage treatment for psoriasis. For further information about NexMed, go to www.nexmed.com.
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Company Contact:
Mark Westgate, CFO
NexMed, Inc.
(609) 371-8123, ext: 159
mwestgate@nexmed.com
Investor Relations:
Paula Schwartz
Rx Communications Group, LLC
(917) 322-2216
pschwartz@rxir.com
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