USE OF PROCEEDS
We estimate that we will receive up to
$9,200,000 in net proceeds from the sale
of units in this offering if all of the units offered hereby are sold,
based on an assumed price of $0.22 per unit (based upon the last reported sale
price of our common stock on November 3, 2010) and after deducting estimated
placement agent fees and estimated offering expenses payable by us. We will use
the net proceeds from this offering to further clinical development of Duromist
and our other product candidates, and for working capital and other general corporate
If a warrant
holder elects to pay the exercise price, rather than exercising the warrants on
a cashless basis, we may also receive proceeds from the exercise of warrants.
We cannot predict when or if the warrants will be exercised. It is possible
that the warrants may expire and may never be exercised.