BioSante and Cell Genesys Report Final Exchange Ratio for Merger

BioSante Pharmaceuticals, Inc. and Cell Genesys, Inc. announced they have determined the final exchange ratio as 0.1828 in connection with the previously announced merger between the companies.

In a release, the groups noted that if the merger is completed, Cell Genesys stockholders will receive 0.1828 of a share of BioSante common stock for each share of Cell Genesys common stock they hold immediately prior to the effective time of the merger. Each company is scheduled to hold a special meeting of stockholders on September 30, at which time stockholders will be asked to approve the merger. BioSante and Cell Genesys expect to close the proposed merger promptly after such stockholder approvals have been obtained.

According to a release, the exchange ratio was calculated pursuant to the terms of the definitive merger agreement entered into on June 29, between BioSante and Cell Genesys and was based on Cell Genesys's net cash, less certain expenses and liabilities, as of September 20, a date ten calendar days preceding the anticipated closing date of the merger. The parties determined that Cell Genesys's net cash as of such determination date was $23.8 million. Since this amount exceeded the applicable net cash target amount of $22.1 million by $1.7 million, the exchange ratio was adjusted upwards from 0.1615 of a share of BioSante common stock to 0.1828 of a share of BioSante common stock. If the merger is completed, BioSante will issue an aggregate of approximately 20.2 million shares of BioSante common stock to holders of Cell Genesys common stock and current BioSante stockholders will own approximately 62 percent of the outstanding common stock of the combined company and current Cell Genesys stockholders will own approximately 38 percent of the outstanding common stock of the combined company, assuming the number of outstanding shares of BioSante and Cell Genesys common stock remains unchanged until immediately prior to the effective time of the merger.

BioSante is a specialty pharmaceutical company focused on developing products for female sexual health, menopause, contraception and male hypogonadism.

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