PharmAthene (PIP) Enters Into $3.9M Common Direct Offering

PharmAthene, Inc. (AMEX: PIP) announced today that it has entered into a purchase agreement to sell $3.9 million of its common stock and warrants to an existing institutional investor in a registered public offering.

Under the terms of the purchase agreement, PharmAthene will sell an aggregate of 2,785,714 newly issued shares of its common stock at $1.40 per share and warrants to purchase an aggregate of 1,323,214 shares of its common stock at an exercise price of $1.63 per share, the closing price of PharmAthene's common stock on July 19, 2010. The warrants will be exercisable beginning on the six month anniversary of the closing date of the offering and will expire six years from the date they first become exercisable.

The offering is expected to close on or about July 23, 2010 subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds of the offering for general corporate purposes.

Roth Capital Partners, LLC served as sole placement agent for the offering. Noble Financial Capital Markets served as the Company's financial advisor in connection with the offering.