Cardiome Announces Preferred Share Financing

    TSX: COM

    VANCOUVER, July 23 /CNW/ - Cardiome Pharma Corp. (NASDAQ:   CRME/TSX: COM)
today announced that it has entered into an agreement with CR Intrinsic
Investments, LLC, an investment fund managed by CR Intrinsic Investors, LLC,
an affiliate of S.A.C. Capital Advisors, LLC to purchase Series A convertible
preferred shares for gross proceeds of US$25 million. Proceeds of the
financing will be used for general corporate purposes, costs associated with
the ongoing strategic process and continued development of Cardiome's clinical
    "We view this transaction as an important bridge which provides us with
additional near-term financial flexibility and a strengthened balance sheet as
we enter an important phase of our current strategic discussions," said Doug
Janzen, President and Chief Business Officer of Cardiome. "We are pleased that
our largest shareholder is willing to support Cardiome with a transaction
which will assist us in maximizing the value of our vernakalant franchise
following our recent positive oral data."
    Under the non-brokered private placement, Cardiome has entered into an
agreement to sell 2,272,727 Series A convertible preferred shares at a price
of US$11.00 per share for gross proceeds of US$25 million to CR Intrinsic
Investments, LLC. Subject to certain timing restrictions, the preferred shares
will be convertible into common shares of Cardiome on a 1-to-1 basis. In the
event of a change of control of the Company, each preferred share will
automatically convert immediately prior to the closing of the change of
control event. No coupon or interest is payable on this series of preferred
shares. Closing of the transaction is subject to the fulfillment of customary
and usual closing conditions.

    About Cardiome Pharma Corp.

    Cardiome Pharma Corp. is a product-focused drug development company
dedicated to the advancement and commercialization of novel treatments for
disorders of the heart and circulatory system. Cardiome is traded on the
NASDAQ National Market (CRME) and the Toronto Stock Exchange (COM). For more
information, please visit our web site at

    Forward-Looking Statement Disclaimer

    Certain statements in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 or forward-looking information under applicable Canadian securities
legislation that may not be based on historical fact, including without
limitation statements containing the words "believe", "may", "plan", "will",
"estimate", "continue", "anticipate", "intend", "expect" and similar
expressions. Such forward-looking statements or information involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, events or developments, or industry results, to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements or information. Such factors include, among
others, our stage of development, lack of product revenues, additional capital
requirements, risk associated with the completion of clinical trials and
obtaining regulatory approval to market our products, the ability to protect
our intellectual property, dependence on collaborative partners and the
prospects for negotiating additional corporate collaborations or licensing
arrangements and their timing. Specifically, certain risks and uncertainties
that could cause such actual events or results expressed or implied by such
forward-looking statements and information to differ materially from any
future events or results expressed or implied by such statements and
information include, but are not limited to, the risks and uncertainties that:
we may not be able to successfully develop and obtain regulatory approval for
vernakalant (iv) or vernakalant (oral) in the treatment of atrial fibrillation
or any other current or future products in our targeted indications; our
future operating results are uncertain and likely to fluctuate; we may not be
able to raise additional capital; we may not be successful in establishing
additional corporate collaborations or licensing arrangements; we may not be
able to establish marketing and sales capabilities and the costs of launching
our products may be greater than anticipated; we rely on third parties for the
continued supply and manufacture of vernakalant (iv) and vernakalant (oral)
and we have no experience in commercial manufacturing; we may face unknown
risks related to intellectual property matters; we face increased competition
from pharmaceutical and biotechnology companies; and other factors as
described in detail in our filings with the Securities and Exchange Commission
available at and the Canadian securities regulatory authorities at Given these risks and uncertainties, you are cautioned not to
place undue reliance on such forward-looking statements and information, which
are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on our
current expectations and we undertake no obligation to revise or update such
forward-looking statements and information to reflect subsequent events or
circumstances, except as required by law.

For further information:

For further information: Peter K. Hofman, Senior Director, Investor
Relations, (604) 676-6993 or Toll Free: 1-800-330-9928, Email:

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