La Jolla Pharmaceutical Company Announces $10 Million Financing and Capital Restructuring

SAN DIEGO, CA--(Marketwired - Sep 25, 2013) - La Jolla Pharmaceutical Company (OTCBB: LJPC) (the "Company" or "La Jolla") (http://www.ljpc.com/), a leader in the development of therapeutics targeting significant unmet life-threatening diseases, today announced that it has entered into definitive agreements related to a private placement of approximately 96 million shares of common stock at a price of $0.07 per share and 3,250 shares of Series F Preferred Stock priced at $1,000 per share. The transaction is expected to yield gross proceeds of approximately $10 million. The Series F Preferred Stock will be convertible into La Jolla's Common Stock at a ratio of 14,285 shares of Common Stock for each share of Series F Preferred Stock, which equals a conversion price of $0.07 per share. The transaction is expected to close on or around September 27, 2013, subject to the satisfaction of closing conditions.

"We are delighted to announce this important capital raise, which should enable us to achieve important development milestones with our two lead products, GCS-100, for the treatment of chronic organ failure and cancer, and LJPC-501, for the treatment of hepatorenal syndrome," stated George Tidmarsh, M.D., Ph.D. President and Chief Executive Officer of La Jolla. The proceeds of this offering will be used to complete the Company's ongoing Phase 2 clinical study of patients with Chronic Kidney Disease and a planned Phase 1 proof-of-concept clinical study of LJPC-501 in hepatorenal syndrome.

Simultaneously, the Company entered into definitive agreements with its existing preferred stockholders to simplify the Company's capital structure. As a result of the financing and capital restructuring, the Company will now have a fully diluted, as-converted share count of approximately 871 million shares, and continues to be debt-free.

MTS Securities, LLC, an affiliate of MTS Health Partners, L.P., acted as sole placement agent in the transaction.

This press release will not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.