Tengion announces plans to price $15 million sale of convertible debt

Offering preceded by $1 million one-month bridge loan; Roth is agent

By Devika Patel

Knoxville, Tenn., Sept. 10 - Tengion, Inc. said it plans to issue at least $15 million of convertible debt in September. This sale will be facilitated by a $1 million one-month bridge loan. Roth Capital Partners, LLC is the agent.

Each of the bridge loan investors is expected to participate in the larger convertible debt financing.

Proceeds will be used to reach the company's two major milestones: completion of the phase 1 clinical trial for the Neo-Urinary Conduit and an Investigational New Drug filing with the U.S. Food & Drug Administration for the Neo-Kidney Augment.

"These financings will allow us to fund the continued execution of our key program objectives, including completing enrollment for the Neo-Urinary Conduit phase 1 trial and filing an IND for the Neo-Kidney Augment program during the first half of 2013," president and chief executive officer John Miclot said in a press release.

"The successful enrollment of the sixth patient in the phase 1 trial for the Neo-Urinary Conduit further bolsters our confidence that we will meet our goal to implant up to 10 patients by the end of 2012, and we continue to work closely with our lead investigators as well as train the surgeons at our four additional clinical sites in order to enroll the remaining four patients this year."

Located in King of Prussia, Pa., Tengion develops autologous neo-organs and tissues, such as bladders, that are derived from the patient's own (autologous) cells.

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