Mast Therapeutics (MSTX) Prices 50M Unit Offering

Mast Therapeutics, Inc. (AMEX: MSTX) announced the pricing of an underwritten public offering of 50,000,000 units, each unit consisting of a fixed combination of one share of common stock and one warrant to purchase 0.5 of a share of common stock, at a public offering price of $0.50 per unit. The units will not be issued or certificated and the shares of common stock and the warrants are immediately separable and will be issued separately, but purchased together. Each warrant will have an exercise price of $0.65 per share and will expire five years from the date of issuance. The Company has granted the underwriters a 30-day option to purchase up to an additional 7,500,000 units to cover over-allotments, if any. The offering is expected to close on June 19, 2013, subject to customary closing conditions. All of the shares in the offering are being sold by the Company.

The Company expects to receive net proceeds from the offering of approximately $22.9 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds primarily to fund EPIC, the Company's phase 3 clinical study of MST-188 in sickle cell disease, and for working capital and general corporate purposes.

Piper Jaffray & Co. is acting as the sole book-running manager of the offering and Canaccord Genuity Inc. is acting as lead manager of the offering. JMP Securities LLC and Brinson Patrick Securities Corporation are acting as financial advisors in connection with the offering.

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