ARYx Therapeutics reaches financing agreement

Biotech ARYx Therapeutics reaches financing agreement to sell up to $35 million in shares

• On 2:35 pm EDT, Wednesday October 7, 2009

FREMONT, Calif. (AP) -- Development-stage biotechnology company ARYx Therapeutics Inc. said Wednesday it may sell up to $35 million of its common shares to Commerce Court Small Cap Value Fund Ltd. under a committed equity financing facility it has secured.

ARYx is not obligated to use any of the facility and will determine the timing, dollar amount and floor price per share, according to a company statement. It will sell newly issued shares to Commerce Court at a pre-negotiated discount based on the volume weighted average price of ARYx shares over a preceding period of trading days.

The amount raised under the agreement will depend on the shares sold and their value before the sale.

"This equity line provides us the continued assurance that ARYx will be able to complete the licensing of our products with the right partners on the most favorable terms," said Chairman and CEO Dr. Paul Goddard said.

The Fremont, Calif., company said it is focused on developing a portfolio of products designed to eliminate known safety issues associated with well-established, commercially successful drugs.

ARYx said it has four products in clinical development, including an oral anti-arrhythmic agent for the treatment of atrial fibrillation and an agent to treat gastrointestinal disorders, blood clots and psychiatric disorders.

ARYx shares fell 5 cents to $3.08 in Wednesday afternoon trading.

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