Matinas BioPharma Completes Warrant Tender Offer – Raises $13.5 Million from Exercise of Warrants

1/19/17

BEDMINSTER, N.J., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Matinas BioPharma Holdings, Inc. (OTCQB:MTNB), a clinical-stage biopharmaceutical company focused on developing innovative anti-infectives for orphan indications, announced today the successful completion of its tender offer to amend and exercise certain categories of existing warrants, which expired at 5:00 p.m. Eastern Standard Time on January 13, 2017. The gross cash proceeds from the warrant exercises were $13.5 million with net cash proceeds, after deducting warrant solicitation agent fees and other estimated offering expenses, totaling approximately $12.7 million.

“We are pleased with the significant participation in our warrant tender and extremely grateful to our loyal shareholders,” commented Roelof Rongen, Chief Executive Officer. “Strategically leveraging this self-financing mechanism not only simplifies our capital structure but importantly significantly improves our financial strength and better positions the Company for an up-listing to a national securities exchange in the near future. Additionally, proceeds from this transaction will help us to further advance our lead anti-infective product candidates, MAT2203 and MAT2501 beyond key clinical data readouts during 2017.”

As of the expiration date, an aggregate of 30,966,350 original warrants were tendered by their holders and were amended and exercised, representing approximately 84.31% of the Company’s 36,728,612 warrants included in the tender offer. SternAegis Ventures, through Aegis Capital Corp. acted as the warrant solicitation agent.

Complete terms and conditions of the offer were set forth in the offer to amend and exercise, Letter to Holders of Original Warrants and other related materials that were filed as exhibits to the Tender Offer Statement on Schedule TO filed by Matinas BioPharma Holdings, Inc. with the Securities and Exchange Commission (the "SEC") on December 14, 2016, as amended and supplemented by Amendment No. 1 filed on January 5, 2017 and Amendment No. 2 filed on January 19, 2017. Copies of the offer to amend and exercise, Letter to Holders of Original Warrants and other related materials are available on the SEC's website, at www.sec.gov.

About Matinas BioPharma

Matinas BioPharma is a clinical-stage biopharmaceutical company focused on developing innovative anti-infectives for orphan indications. The Company's proprietary, disruptive technology utilizes lipid-crystal nano-particle cochleates to nano-encapsulate existing drugs, making them safer, more tolerable, less toxic and orally bioavailable. The Company's lead drug candidate MAT2203, currently in Phase 2, is an orally-administered, encochleated formulation of amphotericin B (a broad spectrum fungicidal agent). The Company has an open Investigational New Drug (IND) application for MAT2501, currently in Phase 1, which is an orally-administered, encochleated formulation of amikacin (a broad spectrum aminoglycoside antibiotic agent) for acute bacterial infections, including non-tuberculous mycobacterium (NTM) and multi-drug resistant gram-negative bacterial infections.

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