Finding funding can be a difficult and often detrimental to share value for many developmental companies. Often times, discounted rates are required to current share price with value being derived from the bid price. Of course, shareholders often scream “dilution” and are disgusted by the concept. Unfortunately, it is a necessary evil the majority of the time as cash is required to expand developments of companies.

When a company can secure financing that is at a premium to share price and work deals for options or warrants that are not detrimental to the share structure, investors should be enthusiastic. This means that capital venture groups, institutions or even private investors see value in the future of the company and are willing to put their money where their mouth is.

Rockville, Maryland-based RegeneRx Biopharmaceuticals announced on Friday that it has secured financing from multiple sources to finance ongoing developments for their compounds. The Company is focused on the development and commercialization of novel therapeutic products for tissue and organ protection, repair and regeneration. The Company’s largest stockholder, Sigma-Tau Group, purchased $950,000 of RGRX. Additionally, a new institutional investor, Lincoln Park Capital Fund, a portfolio manager of investments in public and private entities, purchased $500,000 worth of RGRX. Both firms purchased the shares at 27 cents each; a 35% premium to the previous day’s closing price. In addition to the purchases, RegeneRx issued common stock warrants to both companies which entitle them to purchase an additional aggregate of 2,148,148 shares at an exercise price of 38 cents per share over a five year period. Both deals were closed yesterday. Totals from the purchases equal $1.45 million with warrant rights totaling an additional $816,296.24.

RegeneRx also negotiated another agreement with Lincoln Park the commits Lincoln Park to purchase an additional $11 million of RGRX over the next two and one-half years. The agreement is completely at the discretion of RegeneRx and entails RegeneRx filing a registration statement with the SEC to cover the resale of additional shares that will be issued to Lincoln Park. Upon the registration being effected, Lincoln Park is bound to the contractual agreement to purchase the shares in specified amounts and at specific prices that are based on current market price with no discounts being awarded. Funds accumulated from these agreements are planned to be used to continue the Company’s clinical development strategy and prepare for future trials, as well as for working capital and other general corporate purposes.

More information on RegeneRx Pharma can be found on the Company’s website at www.regenerx.com